Posts Tagged ‘Winterbourne View’

Vox Political on the Continued Threat to the Vulnerable from Tory Privatisation of Care Homes

June 1, 2016

This is another scandal. Five years ago, in 2011, eleven staff members at the Winterbourne View care home were jailed after Panorama filmed them abusing the patients there. David Cameron promised that he would review the government’s policies on such homes to prevent a similar scandal ever happening again. Five years later, the government has privatised £27 billion of services, putting them into the hands of private contractors, and nothing has been done to safeguard other vulnerable people. A letter has been sent to Cameron by the relatives of the abused patients, demanding that he shut outdated care homes. The letter has been supported by the chief executive of Mencap, the author of the review into Winterbourne View, and the chief executive of the Challenging Behaviour Foundation.

See Mike’s article at: http://voxpoliticalonline.com/2016/05/31/after-winterbourne-view-has-tory-nhs-privatisation-put-more-vulnerable-people-at-risk/

Mike in his comment about the above case, and Cameron’s marked failure to take any action, is that Cameron only cares about what money he can make out of the NHS. The continued health of the rest of us and our relatives counts for nothing.

This is absolutely correct. If you read George Monbiot’s discussion of the mechanics of PFI, set up by Peter Lilley to bring private investment into the NHS, you find that it’s far less efficient, and vastly more expensive than simply letting the state run these hospitals, rather than private industry. See the chapter in his book, Captive State. And Private Eye issued a report a long time ago, which stated that Lilley introduced the PFI for one reason: the state ownership of hospitals, medical centres and doctor’s surgeries under the NHS meant that private enterprise were excluded from getting a share of the corporate profits. This is what the privatisation of the NHS, which began under Cameron’s great heroine, Maggie Thatcher, amounts to. It has always been a case of corporate profit first, public health last, and then lie to obscure the fact.

Private Eye: Has Norman Lamb Finally Recognised Private Equity Firms Should Not Run Healthcare

July 24, 2013

This is story from the 11th December-21st December 2012 issue of Private Eye, reporting that Norman Lamb appears to have cottoned on to the fact that private equity firms running hospitals and other healthcare facilities is recipe for disaster. It states

‘Private Equity

Not-so Super Model

Health minister Norman Lamb has finally recognised what the Eye has been saying for ages: that the tax-driven ownership structure behind companies providing some of the most sensitive public services, such as care for the vulnerable, puts them at huge risk.

Companies such as Castlebeck, behind the abusive Winterbourne View home (Eye 1290), the Rochdale children’s home that was supposed to be looking after girls sexually abused by gangs, all operated on the same financial model: highly-geared with expensive loans from funds (often offshore) that remove any profits the taxman might get his hands on but also leave the “businesses” themselves highly vulnerable to economic downturn.

The model increasingly extends now to other outsourced services – such as forensic science, for example, where offshore fund-owned LGC Forensics recently contributed to the wrongful five-month detention of a man on rape charges after cost-driven lapses at one of its labs. As Eye 1325 noted, the report by the Forensic Science Regulator on LGC was highly critical.

Then of course there are the scores of hospital PFI contracts now held at least partly by private equity funds (Eyes passim ad nauseam).

In a consultation on care home regulation, Lam has at last promised to “challenge business models that could compromise quality”. But lessons of the last decade have yet to be learned, it seems, as his consultation document promises there will be a “light touch”. Such was the approach to financial services regulation that led to Northern Rock and 2008 crash. Good one, Norm.’

In other words, Lamb and the Tories are aware that private equity firms running healthcare doesn’t work, or at least, not as well as they’d hoped. They don’t want to admit, and don’t want to do anything about it, except issue vague statements about quality when the scandals become too great to ignore.

So it’s pretty much business as usual then.

Private Eye on the Perils of Healthcare Ownership: The Winterbourne View Hospital Scandal

July 19, 2013

I’ve blogged today about how the government has privatised the NHS blood plasma service to a private equity firm. It was a private equity firm, Lydian Capital Partners, that owned Castle Holdings, which in turn owned CB Care Ltd. CB Care Ltd was the parent company of which Castlebeck Care was a part, which ran the Winterbourne View Residential Hospital near Bristol. Winterbourne View was the subject of a massive scandal after the BBC’s documentary programme, Panorama, uncovered the horrific abuse of its residents by the staff who were supposed to be caring for them. Winterbourne View was a home for people with learning difficulties. The programme showed the brutal treatment of the patients, including physical violence. It made for difficult, unpleasant viewing. An official investigation and court case followed. This revealed that many of the staff employed at the hospital had little training in the care of such vulnerable handicapped people.

Private Eye published their own investigation of the firm in their issue for the 10th to 23rd of July 2011 in their In The Back section devoted to investigative reporting. The piece was entitled ‘Financial Jiggery Pokery: The Idolatry of False Profits’. It ran as follows:

‘Both Southern Cross and the company behind the Winterbourne View residential hospital, whose management failed to respond to concerns well before Panorama exposed them, ought to have paid more attention to care, and less to financial engineering.

Winterbourne is run by Castlebeck Care, which is part of the CB Care Ltd group. This group, accounts filed at Companies Hpouse reveal, is owned by a Jersey company called Castle Holdings Ltd, which in turn is controlled by the Jersey limited partnership, Lydian Capital Partners LP, through which the group was acquired in 2006 by the Swiss-based private equity group Lydian.

The main backers of Lydian are Irish financiers JP McManus, John Magnier and Denis Brosnan, whose son Paul chairs CB Care; and they also include Irish Billionaire Dermot Desmond, who in 2007 and 2008 donated £100,000 to the Conservaitve party through another of his firms, Venson Automotive.

Having an offshore setup is, of course standard fare for private equity owhnership, which invariably entails stripping out as much profit from businesses as possible in the form of tax-deductible interest payments. This leaves margins in the companies that are supposed to be doing things like caring for people thin (to say the least) and makes decent management a luxury.

CB Care’s most recent accounts show it saddled with £233m bank debt and £195 subordinated debt, on most of which investors earn interest at, ahem, 15 percent. The total annual interest bill of £38m a year left the group with losses in 2008 of £19m and 2009 of £10m. Naturally it hasn’t paid a bean in tax. Even a move in April last year to convert £100m of the debt to an interest-free loan – quite possibly at the behest of the taxman – is unlikely to turn the business around.

More importantly, the figures reveal the priorities of private equity-owned care businesses: taking short-term profits out, not putting long-term care in. One of the crucial questions now facing the government is whether foreign foreign equity firms are the best stewards of British social care., As men like Desmond fund the Conservative party, it may be a question it will try to avoid.

* Castlebeck issued an immediate statement after Panorama, detailing its plans to deal with the matter. Unfortunately7, even after the story broke the company’s website was still displaying a logo proudly telling visitors it was the “overall winner of the 2010 Healthcare 100 Best Employers Award”. This bit of self-aggrandising has been quietly removed.’

This is the type of firm the Coalition has decided to sell the NHS Blood Plasma Service to. Still, no doubt they’ve got utter confident in the situation.