More than £18 million of NHS spending in Bedfordshire, Luton and Milton Keynes has gone to private company profits over the past two years, according to new research, but local NHS leaders say independent providers play a necessary role in delivering care.
The study, published by the Centre for Health and the Public Interest (CHPI), found that £18.2 million of the £127 million spent by the local Integrated Care Board (ICB) on private providers was recorded as profit.
Local findings
The report places Bedfordshire, Luton and Milton Keynes among the ten highest areas in England for the proportion of NHS spending going to private profit.
The £18.2 million figure is equivalent to employing around 103 doctors or 219 nurses over two years, according to the think tank.
The research also found that £6.7 million of NHS spending in the area went towards paying interest on private-sector debt, while £46.5 million was spent on companies ultimately owned overseas, including £3.5 million linked to firms based in tax havens.
The findings come as the local NHS system has reported a deficit of £11.3 million.
NHS response
NHS Central East Integrated Care Board said it commissions services based on patient outcomes, and not ownership models.
A spokesperson said: “Ensuring every pound of NHS funding delivers the best possible care for patients is our top priority.
“When we commission services, we follow the national Provider Selection Regime, which requires us to assess providers against a range of criteria, including quality, value for money, integration with other services, and reducing health inequalities.
“Contracts are awarded based on what will deliver the best outcomes for local people, not their ownership model.
“Independent providers are used in specific circumstances to increase capacity, reduce waiting times, or provide specialist services that are not available within the NHS locally.
“We keep all contracts under regular review and use benchmarking to ensure they represent fair value.”
Calls for reform
However, David Rowland, director of the CHPI, said the findings raised concerns about how NHS funding is used.
“Given the massive pressures faced by the NHS in Bedfordshire, Luton and Milton Keynes, the large amounts of profits which are leaking out of the NHS to private companies urgently need to be looked at,” he said.
UNISON’s head of health, Helga Pile, added, “The health service needs to make every penny count, given current funding constraints. This money would be better used to transform services for patients, increase staffing levels and boost pay.”
The CHPI has called for measures including a cap on profits, limits on debt held by providers, and greater transparency over where money paid to private companies ultimately ends up.
Nationally, similar concerns have been raised about the role of private providers in the NHS.
The Guardian reported that private firms providing services to the NHS made £1.6 billion in profits over the last two years, based on contracts worth around £12 billion.
The newspaper reported that the findings have prompted calls for a cap on profits and greater transparency, while also highlighting that independent providers deliver a range of services including diagnostic tests, elective procedures and mental health care.
