Published on 13/07/2012
The Health Secretary is to announce today that the cap on the amount NHS hospitals can earn from private sources will be lifted from October 1 2012.
One of the controversial parts of the Health and Social Care Act is the decision to allow hospitals to earn up to 49 per cent of their income from non-NHS work.
Critics believe that the move is a further step towards total privatisation of the NHS.
But Andrew Lansley has said that removing the cap would “level the playing field” and allow foundation trusts to expand their range of services.
The cap not only covers private patients, but also income from research, joint ventures and the sale of drugs and intellectual property to UK and worldwide customers.
He emphasised that the Health and Social Care Act made it “absolutely clear that the responsibility for any NHS organisation in the future is to provide NHS services and any private work is supplementary".
At a time of austerity, lifting the cap is “a really creative way of bringing more money into the health service"
- Sue Slipman, chief executive of the Foundation Trust Network.
As the cap is lifted it is inevitable that NHS hospitals will begin to expand their private facilities, something which health insurance customers may take advantage of.
© ActiveQuote Ltd. 2012Categories: NHS and Hospitals