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GP enhanced services could be opened up to competition with private providers

By Gareth Iacobucci | 07 Oct 2011

More than £1 billion of primary care funding could be stripped from GP practices and funnelled to private providers under any qualified provider, after the Department of Health refused to rule out opening up all enhanced services to the market.

New DH guidance suggests services currently procured through local enhanced services could be provided under any qualified provider (AQP) in future.

The guidance says GPs will be able provide services under AQP where they are qualified - but suggests the market could also be opened up to other providers, with practices potentially losing valuable funding as a result.

Enhanced service funding currently accounts for roughly 12% of the total £10 billion general practice budget.

In response to a question asking whether services currently commissioned as LESs would be procured through AQP, the DH said: ‘Enhanced services are part of GP contract arrangements.'

‘Subject to the Health and Social Care Bill, the NHS Commissioning Board will in future be responsible for the commissioning of primary care services through the GP contract and will need to decide on the most appropriate arrangements for the future of local enhanced services.'

The guidance also said GP commissioners will have to negotiate with providers to set local prices for services not covered by national tariff, with commissioners required to engage the market and determine the appropriate service specification, pathway, referral protocols and outcomes before running an AQP opportunity.

Commissioners are warned not to set prices too high or too low, as this will affect choice, innovation and potential cost savings.

Dr Jane Lothian, secretary of Northumberland LMC, and a GP in Ashington, said she would be ‘extremely concerned' if enhanced services were taken out of the general practice setting.'

‘Services would fragment. Enhanced services are best delivered in the practice where patients get the rest of their care,' she said.

‘It could de-skill primary care, and I can't see how it would be more efficient.'

Dr Brian Balmer, chief executive of Essex LMC, and a member of the GPC's commissioning and service development sub-committee, said the policy risked destabilising primary care and straightjacketing commissioners.

He said: ‘If they're going to restrict what practices can provide then the new system isn't going to work.'

‘I'd like commissioners to have the freedom to do local deals with sensible providers that they know and trust. The danger is this becomes some sort of enforced thing and the freedom to commission is reduced.'

READERS' COMMENTS

Simon Ruffle, GP Partner,
07 Oct 2011
Am I falling for another joke? Fragmenting the delivery of primary care- genius. 'Mrs X I'd like you to have a blood test. I can't do that as Tescburyson's do them and no you still have to go to Lidlaldi for you warfarin test and I'm sorry Virginatos does your smear, me? I'm just not sure what I do anymore but it's ok I'm not being paid either.'
Practice boundries won't be necessary as there won't be enough practices left to have them.
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Anonymous, Manager,
07 Oct 2011
As more details come out about how the reforms will be implemented in practice, I find it harder and harder to understand why GPs are not just standing up and saying 'no, we won't do this.' However difficult your relationship may be with your PCT, at least you have people to have the discussion/argument/fight with locally.

Now decisions on Enhanced Services will be taken by the NHSCB from a regional miles away, I can't imagine how this will be responsive to local needs or how you as Practices will be able to discuss the implications and argue against any negative impact.
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Anonymous, Other NHS,
07 Oct 2011
Well I suppose we should be grateful that the DH is now being honest about government policy on competition........

In a true market it is only right and fair that all healthcare services are open to all; otherwise people, like Assura, will take local GP practices to the Competition Panel as they are not allowed to be considered and LES's provide unfair advantages to the incumbent provider.

Got nothing to do with efficiency.
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Anonymous, GP Partner,
07 Oct 2011
I am a GP in my mid to late 50's. With fall in practice income, increased superan. payments and other expenses such as defence society costs my take home pay will soon be not much better than my pension would be. I feel sorry for my younger colleagues who cannot get out as easily.
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Anonymous, Salaried GP,
07 Oct 2011
GP practices will lose the enhanced services contracts just as they have lost every other contract going. The harmoni's and the practice PLC will come in and win over the contracts. they will place salaried GP's to under take the provision of the service. they will offer the service at a price lower than standard practices. The commisioning boards who are being squeezed will give the contract to the cheapest provider that can deliver the service. the private companies will be cheaper as they can provide economies of scale. I really do wish that we had a united profession that would stand up and say no, anonymous manager, but we don't. we have the salaried / partner divide and so the future for a salaried GP is to actually join the private company and work for them.

- anonymous salaried!
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Anonymous, Manager,
07 Oct 2011
Nothing surprises me anymore about this government how they blatantly lie about their true agenda, but it is being exposed more and more that Cameron's words "the NHS is safe in their hands" as just not being true in fact this government should carry a health warning as their slogan stating "beware this government could kill you"
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Anonymous, GP Partner,
07 Oct 2011
what pct and gp's are doing to hospital will happen to them. gp are happy to send patients to private sectors because money is allocated to them already. hospital staff and services available are not used. they still need to foot the bill for staff salary.
now if les/des go gp will face same issues. why gruble?
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Anonymous, PCT,
07 Oct 2011
Anonymous, Salaried GP

I dont understand why practices are so fearful of competition from another part of the private healthcare sector. GP's have the advantage of contact with the patients. Allot of their fixed costs are covered via their core contracts. Competing with other private companies and winning on price should be easy.
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