‘The NHS has become simply a logo for a partially privatised system – and the roots of the change go back to Davos’

Alex Scott-Samuel

”The principles underlying the creation of the National Health Service exemplify solidarity expressed through policy: comprehensive care for all, without charge, publicly owned and provided, funded from progressive taxation. Nationally defined pay, conditions and quality standards completed the picture. Such a ‘single payer’ system allows pooling of risk, so that resources can be allocated to the individuals and the areas where they are most needed: from each according to their abilities, to each according to their needs.
Prior to the Thatcher governments, there was a broad consensus regarding the nature of the NHS. Thatcher’s early attempts at privatisation were opposed even by her Cabinet colleagues, who recognised they would bring electoral disaster. Later in the 1980s Letwin, Redwood and other right wing ideologues drafted plans to privatise the NHS.

Britain’s Biggest Enterprise Idea – Oliver Lewin & John Redwood – Published by The Policy Exchange

The Major government then created the ‘internal market’ whereby NHS hospitals were forced to compete for patients rather than simply treating their local populations. Under the Blair government, this costly and wasteful exercise was expanded further through the imposition of private surgical provision into the NHS.  

Kings Fund Briefing 2009 – Independent Treatment Centres – Chris Naylor & Sarah Gregory

Finally, the complete destruction of the publicly provided NHS was legislated in the Health and Social Care Act 2012. Although this act enables complete NHS privatisation, its widespread failures (e.g. in 2013 Clinicenta Commissioning & Support Unit was transferred to East & North Herts Trust)  and unpopularity mean that it remains partially implemented. Many NHS service contracts have been put out to tender and awarded to the private sector. NHS is now simply a logo for a partially privatised contracting operation, but most services remain free at the point of use. At the same time, in order to create public demand for change, an intentional market failure has been created through systematic underfunding of NHS and social care services. Hospitals have been issued with impossible financial targets, leading to almost the whole English NHS being labelled ‘in deficit’. Increasing rationing of surgical services such as cataracts and joint replacements completes the intended illusion of “a service unable to cope with routine demands and pressures”.

Simon Stevens’ Wikipedia entry describes him as “a health manager and politician.”

The Five Year Forward View and the STPs
Former Blair adviser and later, vice president of US insurance giant UnitedHealth, Simon Stevens was recruited as chief exec of NHS England by the coalition government in 2014, supposedly to complete the implementation of the Health and Social Care Act (H&SCA).But in the face of the chaos created by the failures of the H&SCA, Stevens has instead, cleverly and covertly imposed the massive reorganisation which constitutes the Five Year Forward View (5YFV) and the Sustainability and Transformation Plans(STPs), avoiding legislation and accountability by using NHS regulations, without consulting local authorities, the public or Parliament.

In essence, the FYFV and STPs aim to seize control of all NHS institutions by imposing a universal set of NHS trust financial deficits based on arbitrary cash limits. NHS hospitals are then forced to merge and/or close to eliminate the deficits. They are then replaced by private sector- and insurance-friendly ‘new models of care’ in community settings; these employ lower skilled staff to provide a restricted range of services within a fixed budget, as dictated by the Accountable Care Organisations (ACOs) currently being introduced. The ultimate intended outcomes of this massive, dictatorial reorganisation process are privatisation, co-payments, charges and insurance-funded care for those that can afford it, as in the USA.

Klaus Schwab – Head of WEF

The Davos connection
How do we know this? Research by Stewart Player has revealed that the essential elements of both the FYFV and the STPs are drawn directly from two reports issued by the Geneva based World Economic Forum and discussed at its annual Davos conference in 2012. Both reports were co-authored by management consultants McKinsey. The Financial Sustainability of Health Systems examined the relations between cost, development, public debt and the state. Sustainable Health Systems: Visions, Strategies, Critical Uncertainties and Scenarios (Mckinsey & Co) examined options for change.

The first report recommended raising healthcare productivity through delivering more services with fewer resources. This could be achieved by ‘reinventing the delivery system’ via ‘new models of care’ which would be located in ‘capital-light settings’ using ‘leveraged talent models and low-cost channels’, such as home-based, patient-driven care models. However this shift ‘must be accompanied by capacity reductions in higher-cost channels’ such as hospitals – and the new systems ‘must become more agile in leveraging the opportunities for more self-care’. In other words, make big cuts in hospitals and replace them with cheap, low-skilled community services.

The WEF set up groups of “eminent health systems leaders and experts” – with a predominance of health corporations – to study and develop the two reports. Simon Stevens, who at that time was head of UnitedHealth’s Global Division, acted as Project Steward of the Steering Board for the first WEF report. Several of the personnel in the WEF’s healthcare groups are currently implementing the FYFV and STPs, with which McKinsey remain heavily involved.

Transnational capitalism for England’s NHS
The WEF has been described as “the most comprehensive planning body of the transnational capitalist class”, whose aim is “enhancing competition to the full and eliminating whatever niches remain protected from the full discipline of capital”. Public healthcare systems are clearly among such ‘niches’.

Chris Ham – Kings Fund – says campaigning over the state of A&Es and maternity units may be ‘good politics locally’ but jeopardises better care

It is clear that the strategy now adopted for the NHS in England was written by and for the international business class which has the WEF at its centre, rather than in the Department of Health, NHS England or by local communities, doctors and nurses, as recently proposed by Jeremy Hunt. What is now planned for the NHS is not a response to distinctively English needs, but what the global business elite sees as a way of cutting spending on publicly provided health care.

It is shameful that the Tory government recruited one of the leaders of the international business attack on public healthcare to lead the NHS in England and to impose the FYFV and STPs – strategies whose principles and content precisely mirror the most extreme prescriptions of the Davos reports. This has been cynically withheld from the public and Parliament. It constitutes a national disgrace and must be stopped now, through the election of a government committed to a renationalised, fully public NHS via The NHS Reinstatement Bill.”
Alex Scott-Samuel is Chair of the Socialist Health Association

GW:  Link to HSWA 2012 no longer working – Wonder why?  Thanks to W&H Keep Our NHS Public for the article.  Very comprehensive indeed!

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