The private hospital sector is earning a minimum of between £75m and £90m a month as a result of the deal struck with the NHS in England just to be on standby for any surge capacity that may be needed over the next three months.
And the figure could rise to around £175m per month if surge capacity is utilised by the NHS in England as it copes with the Omicron outbreak.
The figures were ultimately signed-off by health secretary Sajid Javid who issued the letter of direction approving the spend for the surge capacity.
Earlier this week, Health & Protection reported the NHS in England had entered into a three month agreement with 10 private healthcare providers to support the health service if the Omicron variant leads to unsustainable levels of hospitalisations or staff absences.
At the time the sum paid to private hospitals was not disclosed but in a letter to health secretary Sajid Javid, NHS’ chief executive Amanda Pritchard revealed that the service estimates the value of the deal with no activity taking place based on current information at between £75-90m a month.
“However, in the event that any system requires surge arrangements to be put in place, the cost recovery arrangements then applicable will be significantly more expensive at around £175m a month based on data from 2020 arrangements,” she added.
“On a per bed basis this is significantly more expensive than the equivalent cost of an NHS site with much less certainty on the potential staffed capacity.”
Addressing the letter at a meeting of the Public Affairs Committee on 12 January, Dame Meg Hillier described the sum being paid to private hospitals as a “very expensive” proposal.
“It proposes that in order for the independent private sector providers to be ready to stand up at a moment’s notice – seven days’ notice is the strict rule – the cost would be between £75m to £90m a month, based on current information,” she said.
“They would want an upfront payment without anything being delivered. It might be delivered, but it is payment in case it is needed, and that could rise.”
