|
1.
|
INTRODUCTION |
5
|
| 1.1 |
DEVELOPMENT OF PRIVATE FUNDING FOR PUBLIC SERVICES -
INITIAL STAGES |
7 |
| 1.2 |
THE NEW LABOUR GOVERNMENT IN 1997 |
9 |
| 1.3 |
THE MAY 2001 ELECTION AND THE LABOUR PARTY MANIFESTO |
9 |
| 1.4 |
HEALTHCARE IN THE UNITED KINGDOM |
10 |
| 1.4.1 |
General |
10 |
| 1.4.2 |
Primary Care |
11 |
| 1.4.3 |
Intermediate Care |
12 |
| 1.4.4 |
Acute Care |
12 |
| 1.4.5 |
Capacity Limitations |
12 |
| 2. |
EXECUTIVE SUMMARY |
13 |
| 2.1 |
DEVELOPMENT OF PFI/PPP IN HEALTHCARE |
13 |
| 2.2 |
ECONOMIC BACKGROUND |
13 |
| 2.3 |
UK PUBLIC HEALTHCARE MARKET DRIVERS OF DEMAND FOR
HEALTHCARE SERVICES |
13 |
| 2.4 |
THE SCOPE FOR PFI/PPP IN THE HEALTHCARE SECTOR |
14 |
| 2.5 |
PROGRESS TO DATE |
15 |
| 2.6 |
CASE STUDIES |
15 |
| 2.7 |
KEY ISSUES |
16 |
| 2.8 |
EVOLUTION OF THE ROLE OF THE MAJOR PLAYERS |
17 |
| 2.9 |
INTERNATIONAL PERSPECTIVE |
17 |
| 2.10 |
FUTURE PROSPECTS |
18 |
| 3. |
ECONOMIC BACKGROUND |
20 |
| 3.1 |
GDP |
20 |
| 3.2 |
INFLATION & INTEREST RATES |
21 |
| 3.3 |
UNEMPLOYMENT & CONSUMER SPENDING |
22 |
| 3.4 |
CONSTRUCTION |
24 |
| 3.5 |
STERLING |
24 |
| 3.6 |
CONCLUSIONS |
24 |
| 4. |
UK PUBLIC HEALTH CARE |
25 |
| 4.1 |
ORGANISATION OF NHS |
25 |
| 4.1.1 |
England |
25 |
| 4.1.2 |
Scotland |
28 |
| 4.1.3 |
Northern Ireland |
29 |
| 4.1.4 |
Wales |
29 |
| 4.1.5 |
Comment |
30 |
| 4.1.6 |
Summary |
30 |
| 4.2 |
CONTINUATION OF THE NHS PLAN |
30 |
| 4.2.1 |
Focus |
31 |
| 4.2.2 |
Performance Improvement |
31 |
| 4.2.3 |
Investment and Expansion |
32 |
| 4.3 |
GOVERNMENT POLICY SINCE MAY 2001 |
33 |
| 4.4 |
THE IPPR REPORT |
33 |
| 4.5 |
ROLE OF THE PRIVATE SECTOR IN THE HEALTH SERVICE |
33 |
| 4.6 |
TARGETS AND CAPACITY CONSTRAINTS |
35 |
| 4.7 |
CLINICAL STAFF SHORTAGES |
35 |
| 4.8 |
USE OF OTHER FACILITIES |
36 |
| 4.9 |
RE-ORGANISATION |
36 |
| 4.10 |
FINANCING THE NHS |
37 |
| 4.11 |
COMMENT |
37 |
| 5. |
PFI/PPP IN THE HEALTH SECTOR |
39 |
| 5.1 |
TOTAL HEALTHCARE MARKET SIZE |
39 |
| 5.2 |
SIZE OF NHS MARKET |
40 |
| 5.3 |
LOCAL AUTHORITY EXPENDITURE |
42 |
| 5.4 |
NHS NET EXPENDITURE, 2000-01 |
43 |
| 5.5 |
POPULATION MIX |
45 |
| 5.6 |
MIX OF CARE CATEGORIES |
46 |
| 5.7 |
MAJOR INITIATIVES |
47 |
| 5.7.1 |
NHS ProCure 21 |
47 |
| 5.7.2 |
NHS LIFT |
48 |
| 5.8 |
MAJOR NEW HOSPITALS |
52 |
| 5.8.1 |
First Wave |
52 |
| 5.8.2 |
Second Wave |
53 |
| 5.8.3 |
Third Wave |
54 |
| 5.8.4 |
Fourth Wave |
55 |
| 5.8.5 |
Fifth Wave |
56 |
| 5.8.6 |
Sixth Wave |
57 |
| 5.8.7 |
Others |
57 |
| 5.9 |
DIAGNOSTIC CENTRES |
58 |
| 5.10 |
PROGRESS TO DATE |
59 |
| 5.10.1 |
Establishing The Process |
59 |
| 5.10.2 |
The Process from the Point of View of the Bidders |
63 |
| 5.11 |
SUMMARY |
68 |
| 6. |
KEY ISSUES AFFECTING PFI/PPP IN HEALTH CARE |
70 |
| 6.1 |
GENERAL ISSUES |
70 |
| 6.1.1 |
Redevelopment |
70 |
| 6.1.2 |
Refinancing |
70 |
| 6.1.3 |
Insurance |
71 |
| 6.1.4 |
Competence and Commitment of Client |
71 |
| 6.1.5 |
Design Quality and Fitness for Purpose |
71 |
| 6.1.6 |
Payment Mechanism |
72 |
| 6.2 |
HEALTHCARE SPECIFIC ISSUES |
72 |
| 6.2.1 |
Transfer of Personnel |
72 |
| 6.2.2 |
Provision of Clinical Services |
73 |
| 6.2.3 |
Waiting Lists |
73 |
| 6.2.4 |
Concordat with Private Sector |
74 |
| 6.2.5 |
Use of Foreign Facilities |
74 |
| 6.2.6 |
Hypothecation of NHS Revenue |
75 |
| 6.3 |
SUMMARY |
75 |
| 7. |
CASE STUDIES |
76 |
| 7.1 |
INTRODUCTION - LIMITATIONS |
76 |
| 7.2 |
UNIVERSITY COLLEGE LONDON HOSPITAL, UCLH |
76 |
| 7.2.1 |
Background |
76 |
| 7.2.2 |
New Facilities |
77 |
| 7.2.3 |
Procurement Process |
78 |
| 7.2.4 |
Special Technical Characteristics |
78 |
| 7.2.5 |
Facilities Management |
78 |
| 7.2.6 |
Contractual |
79 |
| 7.2.7 |
Financial |
80 |
| 7.2.8 |
Comment |
80 |
| 7.3 |
CHESTER LE STREET COMMUNITY HOSPITAL |
80 |
| 7.3.1 |
Background |
80 |
| 7.3.2 |
Description of Facilities |
81 |
| 7.3.3 |
Basis for PFI Option |
81 |
| 7.3.4 |
Financial Envelope |
83 |
| 7.3.5 |
Procurement Process |
84 |
| 7.3.6 |
Comment |
84 |
| 7.4 |
HIGHLAND PRIMARY CARE TRUST |
85 |
| 7.4.1 |
Background and Description |
85 |
| 7.4.2 |
Advantages |
86 |
| 7.4.3 |
Procurement |
86 |
| 7.4.4 |
Comment |
86 |
| 7.5 |
SUMMARY |
87 |
| 7.6 |
STATUS OF MAJOR PROJECTS |
87 |
| 7.7 |
VALUE AND TOTAL NUMBER OF PROJECTS SIGNED |
93 |
| 8. |
MAJOR SUPPLIERS |
96 |
| 8.1 |
IT PROVIDERS |
96 |
| 8.2 |
CONSTRUCTION AND FACILITIES MANAGEMENT |
97 |
| 8.3 |
COMMENT |
101 |
| 9. |
INTERNATIONAL PERSPECTIVE |
102 |
| 9.1 |
INTRODUCTION |
102 |
| 9.2 |
FRANCE |
102 |
| 9.3 |
GERMANY |
104 |
| 9.4 |
SPAIN |
105 |
| 9.5 |
SWEDEN |
107 |
| 9.6 |
COMMENT |
109 |
| 9.6.1 |
Funding |
109 |
| 9.6.2 |
Capacity |
109 |
| 9.6.3 |
Intermediate Care |
110 |
| 9.6.4 |
Role of Private Sector |
110 |
| 9.6.5 |
Cost Containment |
112 |
| 9.6.6 |
Reform and Politics |
113 |
| 9.6.7 |
Comparison with the UK |
113 |
| 9.6.8 |
Summary |
114 |
| 10. |
FUTURE PROSPECTS |
115 |
| 10.1 |
THE 2002 BUDGET |
115 |
| 10.2 |
LIMITATIONS |
117 |
| 10.3 |
SUMMARY |
118 |
|
APPENDIX 1 - SOURCES & CONTACTS |
120 |
| |
APPENDIX 2 - GLOSSARY OF TERMS |
125 |
| TABLES
& CHARTS |
| TABLE 1 |
EXPENDITURE LEVELS AS A PERCENTAGE OF GDP 1989-98 |
10 |
| TABLE 2 |
GDP PERCENTAGE CHANGE PER ANNUM 1980-2004 |
21 |
| CHART 3 |
INTEREST RATES AND INFLATION (RPI) FROM 1990-2004 |
22 |
| CHART 4 |
PDI & SAVINGS RATIO 1980-2004 |
23 |
| CHART 5 |
EXISTING ORGANISATION OF THE NHS IN ENGLAND |
26 |
| CHART 6 |
PROPOSED ORGANISATION OF THE NHS IN ENGLAND |
27 |
| TABLE 7 |
ANALYSIS OF HEALTH AUTHORITY AND NHS TRUST EXPENDITURE
(YEAR END 31 MARCH) |
39 |
| TABLE 8 |
SUMMARY CASH PLANS £ MILLION |
41 |
| TABLE 9 |
SUMMARY CASH PLANS £ MILLION |
42 |
| TABLE 10 |
SUMMARY CASH PLANS £ MILLION |
43 |
| TABLE 11 |
SUMMARY CASH PLANS - HEALTH SERVICES £ MILLION |
44 |
| TABLE 12 |
BASIC POPULATION DATA RESIDENT POPULATION ESTIMATES
MID-YEAR 1999, BY AGE, PERSONS & DEPARTMENT OF HEALTH
REGIONAL OFFICE AREAS (AS AT 01/04/99) |
45 |
| TABLE 13 |
ANALYSIS OF HEALTH AND COMMUNITY HEALTH SERVICES |
46 |
| CHART 14 |
FORMAL PROCUREMENT PROCESS. |
61 |
| TABLE 15 |
DIFFERENT RECTIFICATION PERIODS. |
66 |
| TABLE 16 |
DEPARTMENT OF HEALTH PROJECTS |
88 |
| TABLE 17 |
NUMBER OF PROJECTS SIGNED PER ANNUM |
93 |
| TABLE 18 |
VALUE OF PROJECTS SIGNED PER ANNUM |
94 |