Privatisation of Foundation Trusts Started

It is reported in the Financial Times that Lansley has ruled that Foundation Trust hospitals cannot use public money for capital projects. This means that if a FT hospital needs a large piece of equipment like an MRI scanner, or new buildings, for example to meet the single sex target, they have to take out commercial loans.

The decision “raises the question of whether this is a step towards privatisation”, said Sue Slipman, director of the hospitals’ collective organisation, the Foundation Trust Network.

Bear in mind that the NHS White paper says that all hospitals have to be come FTs by 2014, so this is simply saying that Lansley no longer wants to take any responsibility in the provision of healthcare. A Health Secretary who cares not a jot about healthcare provision. Worryingly, the FT also reports:

Fifteen of the 129 have recorded a technical deficit in the financial year just ended. And a small number have significant losses and are struggling with their cash flow, according to Monitor. ... John Appleby, chief economist at the King’s Fund think-tank, said: “Given that these are meant to be the best performing NHS hospitals, it is worrying that, even ahead of the spending squeeze, some are struggling financially.”