International law firm Eversheds provides comment on the key issues and policies this result will mean for businesses in the healthcare sector:

Issue 1 – Achieving cost savings in the NHS

Bill Gilliam, head of the healthcare sector group at Eversheds, comments:

“Both the Conservatives and Lib Dems have committed to increasing spending in key areas whilst achieving massive cost savings, which both estimate will need to be around £20bn.

“How they achieve these savings yet maintain quality of service when many NHS organisations have already taken steps to operate more efficiently and effectively, is a key challenge.  Both parties have confirmed their support of existing frontline staff in the form of doctors, nurses and GPs.  They have also identified key services to improve, including cancer treatments, mental health services and integrated health and social care. 

“All of these elements represent very significant spending commitments.  To find the funds for this, the parties are looking to cut costs unnecessarily spent on management, admin, bureaucracy and quangos.  Identifying exactly where those costs can be saved and resource reduced without compromising service delivery will be a substantial task, given the size of the cuts that need to be made.  Whilst it is right that there is significant waste within certain elements of the NHS, many NHS organisations have already achieved enviable levels of efficiency over recent years.

“The Coalition Government will need to look at exactly what services they are going to provide, how they are going to be delivered and how they will pay for them.   Equally, what areas they are going to cut, how they reduce these and what savings these will actually achieve.  All of these issues are connected.   The parties are agreed that the focus should be on patient outcomes, and the key to success will be improving those outcomes, using less to deliver more."

Issue 2 – Ensuring the effective interaction between the public and the private sector in the delivery of healthcare

Bill Gilliam, head of the healthcare sector group at Eversheds, comments:

“The use of both NHS and private sector providers, and whether there should be a preference in favour of the NHS, has long been a point of debate between the political parties.

“Andy Burnham, the former health secretary, made reference to the ‘NHS preferred provider’ approach (i.e. favouring the public sector over the private sector for healthcare delivery).  However, he was forced to back down from this when challenged by Andrew Lansley of the Conservatives in relation to the competition issues arising from this, which has resulted a return to the ‘any willing provider’ approach.   This recognises that whether an NHS or private sector provider would be the best option for service delivery very much depends on each individual situation.

“While it is likely that the ‘any willing provider’ approach will be maintained, there is need for a review of how this will be implemented going forwards.  Inevitably, there will be many areas where the NHS is best placed to deliver care.  However, both the Conservatives and the Lib Dems recognise that the private sector has considerable resource in the form of expertise, experience and technology that can be provided to the benefit of patients in several key areas.  The competition, added value and capacity this can provide should further improve patient choice and services, which both parties are committed to.”

Issue 3 - Delivering truly world class commissioning and provision of healthcare services

Bill Gilliam, head of the healthcare sector group at Eversheds, comments:

“A key focus for the new government will be how organisations can develop to improve their internal and external operations to meet the increased demands and patient outcome orientated objectives that they are likely to set.

“There is no secret that some PCTs have commissioned healthcare services very successfully, while others haven’t.  Lessons need to be learned from the successful PCTs to achieve the objective of delivering truly world class commissioning and provision of healthcare services.  Care will be needed in seeking to devolve commissioning to a local level that essential expertise and experience is not lost.  Commissioning difficulties have been exacerbated in the past due to the separate budgets of PCTs and Local Authorities in providing support to members of their community.  Both the Conservatives and Lib Dems have pledged to seek to continue the integration already started by Labour of health and social care (under the “Total Place” initiative, combining PCT and Local Authority functions), which should provide a more coordinated, streamlined and effective delivery of services to those most in need.”

For more information about Eversheds’ expertise in the healthcare sector, please visit www.eversheds.com

Article supplied by Healthcare Business