ITC gets 600pc profit mark up in red tape Oxfordshire farce
An independent treatment centre that sparked rows and resignations in Oxfordshire has lost the local health economy over £200,000 in its first six months, according to a revealing report by South East and West Oxfordshire primary care trusts.
The report found that the cataract centre run by South African company Netcare has carried out only 93 of the 572 procedures it has been contracted to perform since April.
The review found the number of patient operations has been 'disappointing' and 'slow', but despite this the PCTs had been forced to pay £255,000 for a quantity of work that should have cost £40,000.
Lib Deb spokesperson for Wantage councillor Andrew Crawford said the report showed the public had paid '600 per cent over the odds' thanks to 'government bullying' on choice.
Although the PCTs have used 'various marketing strategies...to encourage uptake of the service', not enough patients had been willing to be treated at the Netcare centre.
'The PCTs are unable to commercially advertise one service over another. The population commonly requiring cataract surgery is elderly, and the Oxford Radcliffe hospitals have a strong reputation and short waiting lists,' the report found.
Jane Dudley, the PCTs'acting chief executive, told HSJ the contract was 'an extra burden' for the trust as it attempted to break even by the end of the financial year.
She said that the PCTs were hoping to use up the spare capacity in the contract by the end of the year and were 'exploring opportunities' with other strategic health authorities to use the cataract operations.
According to the review, the SHA is 'negotiating directly with the Department of Health on Oxfordshire's behalf to have [the financial risk to the PCTs] underwritten'.
Oxford Radcliffe Hospitals trust ophthalmology unit head of nursing and service development Rebecca Turner said the centre had not had any impact on the trust.
'The national target is to get the cataract waiting times to three months,' she said.
'In Oxford we only have an average wait of five weeks, so we didn't need the extra capacity. Fundamentally the damn thing was flawed in the first place.'
Netcare was unavailable for comment.
Troubled history of Oxford treatment centre
November 2003 South East and West Oxfordshire PCTs' board votes against a treatment centre for Oxford but reverse its decision when Thames Valley SHA agrees to take on the risk if capacity is not used.
March 2004 PCTs' chair Professor Martin Avis and SHA chair Jane Betts both resign over the issue.
June 2004 PCT non-executive director Jane Hanna resigns, claiming the PCTs have been forced to agree a deal with Netcare. NHS chief executive Sir Nigel Crisp terminates a Radio 4 interview after being repeatedly questioned about whether managers were 'in fear for their jobs'.
September 2004 A report on the deal finds that Oxford already has enough cataract capacity.
December 2004 Then health secretary John Reid tells the Commons health select committee that the government will always 'reserve a bit of a right [to intervene in a local decision] where self-interest is concerned'.
April 2005 ITC opens.
October 2005 PCTs'review reveals only 93 operations have been carried out.
http://www.hsj.co.uk/nav?page=hsj.news.story&resource=3707019
The report found that the cataract centre run by South African company Netcare has carried out only 93 of the 572 procedures it has been contracted to perform since April.
The review found the number of patient operations has been 'disappointing' and 'slow', but despite this the PCTs had been forced to pay £255,000 for a quantity of work that should have cost £40,000.
Lib Deb spokesperson for Wantage councillor Andrew Crawford said the report showed the public had paid '600 per cent over the odds' thanks to 'government bullying' on choice.
Although the PCTs have used 'various marketing strategies...to encourage uptake of the service', not enough patients had been willing to be treated at the Netcare centre.
'The PCTs are unable to commercially advertise one service over another. The population commonly requiring cataract surgery is elderly, and the Oxford Radcliffe hospitals have a strong reputation and short waiting lists,' the report found.
Jane Dudley, the PCTs'acting chief executive, told HSJ the contract was 'an extra burden' for the trust as it attempted to break even by the end of the financial year.
She said that the PCTs were hoping to use up the spare capacity in the contract by the end of the year and were 'exploring opportunities' with other strategic health authorities to use the cataract operations.
According to the review, the SHA is 'negotiating directly with the Department of Health on Oxfordshire's behalf to have [the financial risk to the PCTs] underwritten'.
Oxford Radcliffe Hospitals trust ophthalmology unit head of nursing and service development Rebecca Turner said the centre had not had any impact on the trust.
'The national target is to get the cataract waiting times to three months,' she said.
'In Oxford we only have an average wait of five weeks, so we didn't need the extra capacity. Fundamentally the damn thing was flawed in the first place.'
Netcare was unavailable for comment.
Troubled history of Oxford treatment centre
November 2003 South East and West Oxfordshire PCTs' board votes against a treatment centre for Oxford but reverse its decision when Thames Valley SHA agrees to take on the risk if capacity is not used.
March 2004 PCTs' chair Professor Martin Avis and SHA chair Jane Betts both resign over the issue.
June 2004 PCT non-executive director Jane Hanna resigns, claiming the PCTs have been forced to agree a deal with Netcare. NHS chief executive Sir Nigel Crisp terminates a Radio 4 interview after being repeatedly questioned about whether managers were 'in fear for their jobs'.
September 2004 A report on the deal finds that Oxford already has enough cataract capacity.
December 2004 Then health secretary John Reid tells the Commons health select committee that the government will always 'reserve a bit of a right [to intervene in a local decision] where self-interest is concerned'.
April 2005 ITC opens.
October 2005 PCTs'review reveals only 93 operations have been carried out.
http://www.hsj.co.uk/nav?page=hsj.news.story&resource=3707019
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