Lord Darzi’s prognosis on the NHS is clear: It needs help from the private sector now
Lord Darzi’s report made clear the NHS is in critical condition; it must accept help from the private sector now, writes Primary Health Properties CEO Mark Davies
The government has not wasted any time. Just one week after taking office, it commissioned Lord Darzi to carry out a full and independent investigation into the state of the NHS. Eight weeks on, his report was published last week, concluding that “the NHS is in critical condition, but its vital signs are strong”. The report gives a clear diagnosis of the problems in the NHS. It is apparent that we can’t go on as before. In a speech this week, Sir Keir Starmer showed he understood how drastic the situation is, stating that the NHS needs to “reform or die”.
A key part of the solution to the NHS’s problems lies in harnessing the innovation, skills and efficiency of the private sector. The business sector can help the NHS deliver better quality health and care. One of Labour’s five missions for government relates to the NHS and includes a target to cut NHS waiting times with 40,000 more appointments every week and a shifting of care from hospitals to communities. It is worrying that there are now 6.3m people waiting for routine hospital treatment, an increase from 2.4m in 2010. It is, however, a source of pride that people travel to the UK from all over the world to be treated at our best hospitals by world-class doctors.
In his report, Lord Darzi emphasised that the NHS has been “starved of investment”. It is well known and recognised that too many hospitals and close to 40 per cent of all primary care medical centres in the UK are no longer fit for purpose. As well as a lack of capital investment, Darzi argues that the NHS budget has been spent in the wrong areas, with too much on hospitals and not enough on community and primary care. From its earliest days, the government had already stated its desire to address this, and committed to diverting money from hospitals to GPs and community health. As a demonstration, health secretary Wes Streeting’s very first visit in office was to a GP practice, just four days after the election. He has spoken about the economic rationale for boosting primary care, claiming that a GP appointment costs the NHS approximately £40, whereas a visit to a hospital is nearer £400.
Primary care is, literally, on the frontline of our nation’s health. GPs deliver more than 30m appointments for patients each month but many of the buildings they work in are not fit for purpose. As the largest owner of primary care properties in the UK, Primary Health Properties stands ready to work with the government. New build costs have increased significantly and, because of inflation, we have explained to the government the need to increase rents. This, in turn, will allow us to develop, build and invest in more modern, flexible primary care centres. If we improve primary care, this will have salutary effects on the whole system. Primary care should be the nation’s primary priority.
Lord Darzi’s prescription for the health service also advocates the better use of technology. It claims that the NHS is 15 years behind the private sector in its use of technology. The tech side is developing rapidly and there are massive opportunities to benefit patients and clinicians. The UK tech sector can play a significant role, therefore, in transforming the NHS. A real commitment to tech innovation combined with a renewed estate can breathe new life into GP surgeries and into care overall.
The NHS is one of the great institutions of this country, but it needs radical action. The private sector can help in several areas, notably service delivery, real estate and technology. The government must harness the private sector, as it embarks on its 10-year plan to improve our much loved, but flailing, NHS.
Mark Davies is CEO of Primary Health Properties, the FTSE 250 REIT