Annex B
An Estimation of Savings and Revenue to
HM Treasury Specifically from the Independent Healthcare Sector
|
| HM Treasury "take" | HM Treasury "saving"
| £ millions |
|
| Insurance Premium Tax | |
100 |
| Tax on consultants fees* |
| 300 |
| Cost of consultants had the NHS done the work**
| 150 |
| Independent Hospital provision had it been done in NHS***
| 770 |
| NHS Private Practice
| 300 |
| 10% Profit to NHS from services sold to independent sector
| 30 |
|
| Total | | 1,650
|
|
* Figure is based on BUPA's estimate of £750
million spent in 1999 on consultants' fees.
** Figure is based on BUPA's estimate of £750
million spent in 1999 on consultants' fees discounted to reflect
procedures the NHS would not perform routinely (eg cosmetic surgery)
and for consultant pay differentials between NHS and private practice
work.
*** Figure is based on the treatments carried out in
the independent sector of £1,590 million. This has been discounted
to reflect greater economies of scale in the NHS and for procedures
the NHS would not perform (eg cosmetic surgery).
NB: The removal of National Insurance Contributions relief
on benefits in kind for employers, removal of the tax relief on
PMI premiums paid by the elderly and Income Tax on PMI have not
been included. The Road Traffic (NHS Charges) Act and the charging
of VAT on all independent hospital goods have also not been included.
| 
