Select Committee on Health Written Evidence


Evidence submitted by Mercury Health (ISTC 6)

INTRODUCTION

  1.  Mercury Health, a wholly owned subsidiary of Tribal Group plc, is a UK business that supports the NHS by creating additional capacity, thus enabling patients to be treated earlier and to have greater choice, including access closer to home.

  2.  We currently run three Treatment Centres and will open a fourth in July this year. The centres are located in High Wycombe, Gillingham (Kent), Portsmouth and Haywards Heath. We provide a range of healthcare services including diagnostic imaging, day and in-patient surgery and a minor injuries unit and walk-in centre. Together, the centres cover a range of procedures including MRI, ultrasounds, echocardiographs, hernia repairs, endoscopies, cataract repairs and orthopaedic operations.

  3.  The Primary Care Trusts who commission the services and the patients who have been treated are generally supportive of the impact we have made on their local health community. To date, 100%. of respondents to our patient satisfaction surveys have said that they would recommend our centres to friends and family.

What is the main function of ISTCs?

  4.  Assessing, diagnosing, treating and rehabilitating NHS patients.

What role have ISTCs played in increasing capacity and choice and stimulating innovation?

  5.  Our centres have increased the total capacity in each location in terms of buildings, equipment and staff so that more treatment has been made available for NHS patients. In terms of innovation, we have established a new service providing direct access to a wide range of diagnostics by GPs in High Wycombe and we are building theatres in Haywards Heath with the technology for remote teaching built in to the operating equipment (endosuites). We are also able to offer NHS patients scheduled procedures at pre-arranged times. Many of the procedures are day cases enabling patients to return home more quickly freeing up beds for other NHS patients and other procedures. We have so far seen 12,209 patients and expect to see another 80-100,000 in 2006-07.

What contribution have ISTCs made to the reduction of waiting times and waiting lists?

  6.  The waiting times at Mercury Health facilities are much shorter than the local NHS Trusts. We have been told by local Trust and PCT CEOs that our presence in the community has helped them motivate their medical staff to shorten waiting times.

Are ISTCs providing value for money?

  7.  We believe they are. We will have invested nearly £60 million in developing our new centres. Given this level of investment and taking into account the fact that the contract terms are more onerous than for NHS Trusts, that VAT is unfavourably treated in comparison to the NHS, that pensions costs have to be fully accounted and no income is obtained until a centre is open, we are confident that the taxpayer is getting very good value for money. If one also takes in to account the "hidden" impact of the incentive ISTCs have given to trusts to improve productivity and the fact that ISTC provision is likely to reduce in cost in the future the programme has delivered excellent value for money.

Does the operation of ISTCs have an adverse effect on NHS services in their areas?

  8.  An ISTC is an NHS service. Local services have, therefore, been enhanced and patient choice and access to high quality services has improved. Some institutions will have had to review their fixed cost base in the light of changed local circumstances but this has been a normal feature of new service development in the NHS over time and will often result in a more efficient deployment of resources.

What arrangements are made for patient follow-up and the management of complications?

  9.  Mercury Health follows up all patients until they are fit for discharge back to the care of their GP. If a complication develops that is appropriate to be treated in the centre, the patient returns and is treated. If treatment is required in another hospital the patient is transferred there and Mercury Health covers the cost.

What role have ISTCs played and should they play in the training of medical staff?

  10.  In three of our centres we have not been asked to provide training opportunities but would be happy to do so. At Haywards Heath, we will be providing a full training facility for about 20 junior doctors at any one time in elective orthopaedics. These doctors will also benefit from our association with Hospital for Special Surgery, one of the leading orthopaedic hospitals in North America. The Phase 2 procurement is expected to require all ISTCs to provide training.

Are the accreditation and appointment procedures for ISTC medical staff appropriate?

  11.  Yes. In fact the process for being appointed as a doctor to Mercury Health is probably more onerous than being appointed to an NHS provider. All our doctors are on the relevant specialist register, are subject to full panel interview (that includes an independent representative from the Royal College of Surgeons) and are required to submit three references. No surgeon who is not on the specialist register can operate in our centres, as opposed to NHS providers who regularly use surgeons not on the register.

Are ISTCs providing care of the same or higher standard as that provided by the NHS?

  12.  We provide a level of care at least as good as that provided by conventional NHS providers. We regularly submit a set of clinical performance indicators which can be compared with NHS provider performance over time. In contrast to most NHS facilities, each of our centres is required to be approved by, and registered with, the Healthcare Commission (HCC) before opening and remain subject to close and detailed inspection by the HCC. All our staff are qualified to at least the same level as NHS staff (for example, all our surgeons are required to be consultant grade) and we have a comprehensive system of clinical governance to safeguard patients.

What implications does commercial confidentiality have for access to information and public accountability with regard to ISTCs?

  13.  Exactly the same implications as any other public procurement.

What changes should the government make to its policy towards ISTCs in the light of experience to date?

  14.  The procurement process should be simplified to allow a greater range of providers, including the voluntary sector, to bid for contracts. A "level playing field" should be created to allow NHS Trusts to bid for these contracts on the same terms as other bidders. This would need to address the issues referred to above—VAT, pensions, regulation, contract risk allocation and a range of smaller but relevant issues.

What criteria should be used in evaluating the bids for the second wave of ISTCs?

  15.  Clinical quality, price and the ability of the proposal to increase choice for patients and provide speedy access to care close to home.

What factors have been and should be taken into account when deciding the location of ISTCs?

  16.  ISTCs should be established close to populations whose access to care either geographically or in terms of waiting times is currently unacceptable.

How many ISTCs should there be?

  17.  Enough to meet the criteria above (paragraphs 15 and 16)

Mark Smith

Mercury Health

7 February 2006





 
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