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1 NHS Foundation Trusts and Changing the Market Structure : Some Messages Malcolm Lowe-Lauri CEO, King’s College Hospital NHS Foundation Trust.

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Presentation on theme: "1 NHS Foundation Trusts and Changing the Market Structure : Some Messages Malcolm Lowe-Lauri CEO, King’s College Hospital NHS Foundation Trust."— Presentation transcript:

1 1 NHS Foundation Trusts and Changing the Market Structure : Some Messages Malcolm Lowe-Lauri CEO, King’s College Hospital NHS Foundation Trust

2 2 Break through change through supply side deconstruction New market entrants –Primary care providers –Independent Sector Treatment Centres Tentative deregulation of NHS hospitals –Account to regulator –Compensated for work done –Keep profits –Borrowing powers –Account to communities, with limitations To sit alongside other policy changes, especially Patient Choice and Payment by Results The Policy Origins of NHS Foundation Trusts

3 3 How have Foundation Trusts performed?

4 4

5 5 Significant variations though recent marked improvement Clusters of deficit e.g. Outer S.E. London Some correlation with clinical quality and safety issues Aggravated by asset renewal through the Private Finance Initative With more pressure – legal, financial – to come How have NHS Trusts performed?

6 6

7 7 Acquisition of Good Hope Hospital by Heart of England F.T. Pre-acquisition discussion in Cambridgeshire, but FTs are cautious ‘Darzi’ plan for London challenging the District General Hospital concept Darzi now going national with Next Stage Review Responses: consolidations and planning solutions

8 8 This is historically a supply-led environment The commissioning unit – the Primary Care Trust – has been undersized and underpowered until recently with a dramatic ambition to world class It must battle pork barrel politics and strong local sentiment So, FTs may have an emerging leadership role The challenge for Commissioners

9 9 Applies to FTs and non-FTs The current university hospital lacks scale The pricing system for NHS services lags behind innovation We need to compete globally Academic funding streams are currently unstable The Academic Health Sciences Centre Question

10 10 Consolidations to create AHSCs Novel partnerships to support own service delivery Novel partnerships to support struggling hospitals – new role for the private sector? Power in the investment potential of FTs to support policy But of course when it comes to professional perspectives, politics and transition costs it’s not as simple as that! So whither an Academic FT?


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