Dec 1st- Private hospitals face 60% rise in inspection costs
Private hospitals and treatment centres, including those that treat National Health Service patients, are to be charged the full cost of their inspection and regulation as part of the government's efficiency drive.
The government is also considering moving to full or increased partial cost recovery for the inspection of care homes, a sector where thousands of beds have closed in recent years as smaller operators have struggled to make a profit.
The moves were announced yesterday as part of the Department of Health's drive to cut the number of arms-length quangos and release £500m a year for NHS frontline services by 2007-08. But while the private sector faces charges for inspection, foundation trusts and other NHS facilities will still not pay. The Independent Healthcare Forum said yesterday that approach would not provide a level playing field with the NHS at a time when the service was looking to commission more care from the private sector at NHS prices.
"If everyone is working to the same NHS tariff, then everyone should face the same regulatory costs," said the forum. Without that the competition would not be fair, it said. Where the full cost of inspection had been introduced in Wales, the few private facilities there had seen a 60 per cent jump in the cost, the forum said.
The department estimated fees in England covered only 40 per cent of the cost of inspections.
Lord Warner, the health minister, said foundation trusts would not be charged "because it has always been clear that foundation trusts are part of the NHS".
Making the independent sector pay would reduce the burden of its costs falling on the NHS. Making NHS organisations pay as well would be "almost the ultimate in red tape", he argued, with the NHS giving hospitals money it would then take back. However, this line of discussion is spuriuos as the NHS is already charged for "bed blocking".
Yesterday's announcement, setting out planned savings to 2008, puts proposals from Downing Street for a merger of the Healthcare Commission and the Commission for Social Care Inspection - bodies that started work this year - on hold.
However, both bodies have proposals to change the way they work that ministers say must reduce the burden they currently place on those they inspect.
Lord Warner said a merger was "not off the agenda forever" but was unlikely to be raised again for another two or three years.
Under yesterday's plans, £800m a year is to be saved by 2007-08 on NHS procurement. Just less than half of that will come from the price cut on branded drugs announced recently, while the restructured quangos are expected to deliver a £250m reduction in operating costs while generating the same again in efficiency savings.
The government is also considering moving to full or increased partial cost recovery for the inspection of care homes, a sector where thousands of beds have closed in recent years as smaller operators have struggled to make a profit.
The moves were announced yesterday as part of the Department of Health's drive to cut the number of arms-length quangos and release £500m a year for NHS frontline services by 2007-08. But while the private sector faces charges for inspection, foundation trusts and other NHS facilities will still not pay. The Independent Healthcare Forum said yesterday that approach would not provide a level playing field with the NHS at a time when the service was looking to commission more care from the private sector at NHS prices.
"If everyone is working to the same NHS tariff, then everyone should face the same regulatory costs," said the forum. Without that the competition would not be fair, it said. Where the full cost of inspection had been introduced in Wales, the few private facilities there had seen a 60 per cent jump in the cost, the forum said.
The department estimated fees in England covered only 40 per cent of the cost of inspections.
Lord Warner, the health minister, said foundation trusts would not be charged "because it has always been clear that foundation trusts are part of the NHS".
Making the independent sector pay would reduce the burden of its costs falling on the NHS. Making NHS organisations pay as well would be "almost the ultimate in red tape", he argued, with the NHS giving hospitals money it would then take back. However, this line of discussion is spuriuos as the NHS is already charged for "bed blocking".
Yesterday's announcement, setting out planned savings to 2008, puts proposals from Downing Street for a merger of the Healthcare Commission and the Commission for Social Care Inspection - bodies that started work this year - on hold.
However, both bodies have proposals to change the way they work that ministers say must reduce the burden they currently place on those they inspect.
Lord Warner said a merger was "not off the agenda forever" but was unlikely to be raised again for another two or three years.
Under yesterday's plans, £800m a year is to be saved by 2007-08 on NHS procurement. Just less than half of that will come from the price cut on branded drugs announced recently, while the restructured quangos are expected to deliver a £250m reduction in operating costs while generating the same again in efficiency savings.
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10:13 AM
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