Evidence suggests that privatising healthcare services does not produce better health outcomes. So why is Labour so keen on doing this?

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The medical journal, The Lancet has published a paper this month with the following heading:

The Summary of the piece is as follows:

Over the past 40 years, many health-care systems that were once publicly owned or financed have moved towards privatising their services, primarily through outsourcing to the private sector. But what has the impact been of privatisation on the quality of care?

A key aim of this transition is to improve quality of care through increased market competition along with the benefits of a more flexible and patient-centred private sector. However, concerns have been raised that these reforms could result in worse care, in part because it is easier to reduce costs than increase quality of health care. Many of these reforms took place decades ago and there have been numerous studies that have examined their effects on the quality of care received by patients.

We reviewed this literature, focusing on the effects of outsourcing health-care services in high-income countries. We found that hospitals converting from public to private ownership status tended to make higher profits than public hospitals that do not convert, primarily through the selective intake of patients and reductions to staff numbers. We also found that aggregate increases in privatisation frequently corresponded with worse health outcomes for patients.

Very few studies evaluated this important reform and there are many gaps in the literature. However, based on the evidence available, our Review provides evidence that challenges the justifications for health-care privatisation and concludes that the scientific support for further privatisation of health-care services is weak.

I added the paragraph breaks: there were none in the original.

Let me be clear about what this paper does not say. It does not suggest what form of state-supplied medical care might be best for a population. This is not, therefore, an article that by itself justifies the existence of the NHS in its current form.

That said, what the paper does suggest is that over a wide range of surveys, privatisation of whatever form of state-delivered healthcare there might have been has not improved health outcomes.

What the paper does, however, suggest is that the privatisation of previously state-provided services did deliver an improvement in the profitability of private healthcare companies. In other words, a clear winner from privatisation can be identified, but it is not the patient or the state that then funds the provision of privately supplied health services. Only health companies gain.

Is there, in that case, any reason for labour or anyone else to think that the answer to healthcare supply in the UK might rest with the private sector? The straightforward answer would appear to be, 'No, there is not.'

In that case, why are Labour so keen on using private medicine and privatising the NHS? Is it simply that the private healthcare lobby has got to them? Or is there more to it than that, about which we should know?


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