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Alan Johnson to limit private sector in the NHS http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/07/26/nhosi226.xml By Rebecca Smith, Medical Editor Alan Johnson, the new Health Secretary, laid out his plans for the NHS yesterday, promising that the involvement of the private sector would be limited. In a clear break with the Blair years, Mr Johnson announced there would not be an expansion of contracts with the private sector to provide operations for NHS patients after those in the pipeline had been approved. Gordon Brown is understood to want to limit competition between the NHS and the private sector in what some have seen as the privatisation of the health service. Mr Johnson was making his first appearance before the Commons health select committee, whose members questioned him about the future direction of the health service. "I don't believe there is the need for another independent sector treatment centre [ISTC] procurement and there won't be a third wave," he said. "We will instead move towards greater local determination." Mr Johnson said one new contract was being signed today with Capio for 11,000 orthopaedic and general surgery operations a year in Cumbria and Lancashire. A few others may follow in the coming months to add to the 21 centres in operation. A contract for diagnostic tests with Atos Origins in the North West and South West of England was being terminated. It is understood there were problems with patient information and delays in reporting results. ISTCs have been controversial because the NHS has to pay for the number of operations in the contracts even if they are not carried out. Earlier this month The Daily Telegraph revealed that about £1 million had been paid by Derbyshire County Primary Care Trust to a private health care company for operations on NHS patients that had not taken place. Dr Jonathan Fielden, the chairman of the British Medical Association's consultants committee, said: "The BMA is pleased that the Government has decided not to go ahead with a further wave of the ISTC programme. "In many areas, the need for an ISTC to provide extra capacity has been poorly assessed and contracts, paid-for regardless of activity, are often under-utilised. "The independent sector should only be used when the NHS cannot provide the service locally and when it is truly value for money." Andrew Lansley, the Conservative shadow health secretary, said: "This hails a clear break from Blair's public service reforms and adds to the confusion over the future direction of the NHS. "Independent sector provision in the NHS is not the problem, rather it is Labour's inability to negotiate value-for-money contracts and create a level playing field for NHS providers." Mr Johnson promised that there would be no more major restructuring in the NHS but said there would be no reversal of the decision to give nurses and midwives a pay award in stages, further angering unions as they draw up plans for industrial action. Alex Nunns Information Officer Keep Our NHS Public 07763607528 [log in to unmask] <mailto:[log in to unmask]> www.keepournhspublic.com <http://www.keepournhspublic.com>