A HOSPITAL set up three years ago as a blueprint for cutting NHS waiting times is facing closure after failing to attract patients and running into multimillion- pound debt.
Documents seen by The Times show that Ravenscourt Park Hospital, a specialist centre for hip and knee operations in West London, is expected to incur losses of £37 million by 2010 because of high running costs and lack of demand.
Ministers have championed treatment centres such as Ravenscourt Park as a cost- effective means of driving down waiting times and giving patients more choice over where they are treated.
Doctors’ leaders said that the hospital’s problems were symptomatic of fundamental flaws in the policy: wasting money and destabilising existing hospitals.
Ravenscourt Park, which cost £14 million to set up, has had to close one ward for lack of patients, with only 40 of its 116 beds required at present. Minutes from recent meetings of the clinical board show that it faces a £12 million deficit this financial year, with annual debts of at least £5 million expected over the next five years. Senior staff describe the situation as bleak.
Last month the Government hailed Ravenscourt Park and its 28 other treatment centres as vital to the future of the NHS. A further 17 NHS-run centres and more than a dozen in the private sector are due to open by the end of this year. A Department of Health report described the centres, which are designed to carry out elective work such as orthopaedic and general day-care surgery on an extra 200,000 patients a year, as “spearheading the NHS drive to modernise and improve patient care ”.
Recent meetings of the Ravenscourt Park board paint a different picture. Minutes of one meeting last April said that a proposal “to ‘mothball’ Ravenscourt Park Hospital at a cost of £4 million annually should be looked at in the context of funding projections”.
The hospital was in an even worse state by December’s meeting. Unable to perform treatments for trusts at competitive rates, it has been rejected by five out of seven local trusts, putting it in a perilous financial situation. It is estimated that the hospital must carry out almost double its current 6,000 operations a year to remain viable. An emergency plan has been drafted to bring in short-term work from Buckinghamshire. The problem comes amid growing concern about the way in which NHS reforms are being implemented. Although waiting lists are being reduced, it is feared that excessive costs could spell ruin for the NHS.
The country’s first treatment centre, opened in 1999 at the Central Middlesex Hospital, in Park Royal, North London, has also plunged into debt. Hailed as the “embodiment of the NHS” by Tony Blair, it is now running at half capacity.
John Reid, the Health Secretary, said that he accepted that there were “bubbles in the system”, but said that these would disappear from 2008, when patients were allowed to choose treatment anywhere in the country. “We may have extra capacity sitting [at the moment],” Mr Reid said. “However, once we get to complete patient choice, the plan is that if you have a very good hospital, people will get to it. It is inevitable that it takes time to transform the system.”
Derek Smith, chief executive of Hammersmith Hospitals NHS Trust, which manages Ravenscourt Park, was unavailable for comment. James Johnson, chairman of the British Medical Association, said the hospital’s crisis was symptomatic of “very serious problems” with reforms. “These are not just teething troubles. It seems to be an intrinsic problem, which is why it is so worrying.”
TREATMENT CENTRES STRUGGLE
# Treatment centres should cater for an extra 200,000 patients a year
# At Ravenscourt Park Hospital, West London, just 40 of 116 beds are needed, with losses projected to reach £12 million by April and £37 million by 2010
# ACAD (ambulatory care and diagnostic) clinic at Central Middlesex Hospital, North London, is running at half its capacity. Weekend work has stopped and more than 20 staff have been relocated. It has lost more than £3.5 million in potential revenue
# Southampton General Hospital is expected to lose 50 per cent of elective work to independent treatment centres over the next five years
# NHS services in Birmingham are expected to lose many patients to independent treatment centres, which have been earmarked for at least £39 million of elective operations
First published by Times Online 14/2/5