Posts Tagged ‘Daniiel Drache’

Privatisation Has Increased NHS Expenditure, Not Reduced It

January 1, 2020

I found this little statistic about the increase in NHS expenditure due to Thatcher’s NHS reforms, including privatisation, in Daniel Drache’s and Terry Sullivan’s Health Reform: Public Success, Private Failure:

Offsetting the quantitative picture of change presented thus far are data on expenditures. Privatisation has accompanied not a decrease but an increase in NHS spending to well over 6 per cent of GDP, and yet efficiencies and improvements have occurred in the public sector. (p. 130).

It’s not hard to see why. Private healthcare is much more inefficient compared to state provision. About ten per cent of the expenditure in private health companies is on management costs. This is usually ten per cent, but can rise in some firms to 40. And some of this is because, apart from paying the medical professionals, who actually do the work, these firms must also provide a profit for their shareholders.

The continuing privatisation of the NHS set in motion by Thatcher isn’t making the NHS more efficient. It’s making it less so, for the profit of the private healthcare companies like BUPA, Circle, Virgin Health all trying to cash in on it.

If we want to create a genuinely efficient NHS that provides universal healthcare free at the point of use, it has to be renationalised. And that means a left-wing Labour government.

So for everyone’s health, kick out Boris and the Tories!