Select Committee on Health Minutes of Evidence


Examination of Witnesses (Questions 40-59)

DR JOHN LOW, MRS RUTH THOMSEN AND MR JEFFREY MURPHY

8 MARCH 2007

  Q40  Sandra Gidley: Are you saying that every time somebody has a hearing aid fitted privately they are getting £800 worth of service?

  Mr Murphy: It depends. There are prices from £500 up to £1,500. The average price is £1,000.

  Q41  Sandra Gidley: I think I know what I will do if I lose my seat at the next election!

  Mr Murphy: The real comparison is the retail price with the wholesale price, so it is not £70 to £1,000; it is £70 to £280. The commercial price that retail companies are paying is well in excess of the NHS's price.

  Dr Low: The NHS is the biggest single purchaser of hearing aids in the world and is therefore able to command extremely competitive prices.

  Q42  Dr Taylor: Do these marvellous devices mean that people actually wear them? With the old ones, you had people continually fiddling to get rid of the noises and then they threw them out. Do they wear them?

  Mrs Thomsen: The patients obviously used to fiddle a lot. The digital hearing aids have very clever technology. It is like a whole computer inside a small hearing aid. The majority of the digital aids available on the NHS have no volume control: they automatically adjust according to the environment. Some patients do need a volume control because their hearing fluctuates but the majority of the hearing aids have various programmes for certain listening environments and they adjust automatically. No matter what hearing aid you fit to a patient, you will not give them back the hearing they were born with. You have to look at the whole needs of the patient. You cannot just put something in an ear and say, "Okay, off you go." You need to look at their communication needs and support it with rehabilitation, explaining expectations, talking about adaptation time for getting used to the hearing aid. You also need to follow them up, to make sure it has been fine tuned appropriately. There is an infinite number of settings on these digital hearing aids and you need to have a good working knowledge of the software you use to programme them in order to utilise the best to match each patient's needs. One hearing loss can look identical to another, but the patient's perceptions and needs can be very different and you need to tailor make for that. You need to look at supporting them in their environment as well, connecting with social services for things like doorbells, television aids and things like this, and also looking at the social aspects. Obviously a lot of people come because they have become very isolated and you need to try to encourage these patients back into the world, to get them back out there hearing and listening and having the confidence to start living their lives again.

  Q43  Dr Taylor: So they do wear them all the time because they are so very good.

  Mrs Thomsen: No. I sometimes say they are a bit like shoes: it is quite nice to take them off when you get home. If you have something in your ears all the time, it is quite nice sometimes just to take them out and give yourself a little rest. If a patient is sitting reading and they do not need to be listening for doorbells or telephones, then they have the advantage and they can have that lovely, quiet, peaceful time to read. Some people still feel the stigma. They are still embarrassed. There is still that area of "I don't want people to know." I have to say, however, that over the last five to seven years that is really, really reducing. That is not now, like it used to be, a huge hurdle to get over, with the help of the companies developing different colours, making them look more like mobile phones, and the fact that the word "digital" is in there seems to help a lot as well. When they see the knowledge and skills needed to fit it with the software, they realise and take it on board and do try. MHAS, when they rolled out the digital service, talked about this as well. It was not just about the product and what you were fitting; it was looking at the whole patient and making sure you met their communication needs.

  Dr Low: Some of the modern hearing aids that the NHS are fitting have data loggers built in, so you can tell how much the person is using it and at what kind of setting.

  Q44  Mr Penning: Big Brother.

  Mrs Thomsen: It is, yes.

  Q45  Dr Naysmith: I would like to ask Mr Murphy a few questions about the public/private partnership. I know his company is involved with it. Do you think it has been a success?

  Mr Murphy: We think so. The positive from the whole thing is that it was a good motivation for our staff. I think we broke down some of the barriers between the independent sector and the public service. Our skill levels increased. We learned a lot from procedures that we had to perform. We processed through our branches nearly 40,000 patients, who got a flexible high street service. The report from the MRC, Professor Davies, was very positive. We were measured as having better outcomes than the NHS were supplying at that time and, also, we had a better service to the client on the high street, in convenient areas. We learned a number of lessons that we have now put into commercial practice, so it was worthwhile from that point of view. We measure outcomes better and we had an experience with some geographical locations. There were some lessons to be learned. We made a major investment in software. The hospitals have two operational systems to deal with patients. That was a challenge for us. One of the software systems did not have an import/export system to remove patients' names and we had to invest a large amount of capital in that. We invested in branches and staff and, because of the size of the contract and the length of the contract, we probably never got that investment back. From our point of view, in all, 60,000 patients went through the service, we dispensed on time the correct instrument and had a very good outcome from it. I think it was a major success.

  Q46  Dr Naysmith: Why is it that quite a lot of the evidence we got in was quite critical of the public/private partnership? Perhaps I could put to you some of the things that were said. "It cost more than National Health Services." "Half the patients treated by private providers ended up seeking further rehabilitation from the National Health Service." "Some people were paid for work that was not done." What do you say about these criticisms?

  Mr Murphy: The only evidence I have seen is the report done by the MRC. There are anecdotal comments—and I have seen some of the evidence—that we did not experience. We had a very tough contract. There were compliance levels that were higher than some of the hospital levels and we complied with those compliance levels. We complied with the service times, we delivered our contract on time.

  Q47  Dr Naysmith: Are you suggesting that it was some other company? Because it was not just one firm that was involved.

  Mr Murphy: No, the other company that took part had a similar experience. There were some peripheral contracts around the PPP in which we did not participate, so it may be they are referring to that. Officially, from reports and feedback from the RNID who managed the project, from APASA who awarded the contract, from the MRC who did the research I have not had those comments in the PPP. As I say, there were other contracts that were done independently by hospitals and they may come from that.

  Q48  Dr Naysmith: That will be published when our written evidence is published but it is already available now, I should think.

  Mr Murphy: I have seen some of it.

  Q49  Dr Naysmith: The Academy of Audiology was one of the bodies.

  Mr Murphy: I have not seen their evidence. Charing Cross talked about PPPs being done in hospitals. In the contract, we could not go into the hospital. On the PPP the specific contract was outside of the hospital in the high street, we did not work in the hospital, we did not work with hospital staff, so some of the evidence that I have seen does not refer to the PPP. I think it refers to the contracts that were outside—and there were a number of them—where hospitals contracted separately with independent audiologists. That might be the reports from there. Certainly the evidence in the PPP does not show that. I can only comment on the PPP because we did not participate outside.

  Q50  Dr Naysmith: The costs of the PPP activity exceeded the marginal costs of treating the patients in the NHS by at least a factor of two. You can draw the conclusion that the programme should be considered as a temporary stop-gap and then return to the NHS. Is that an unfair statement?

  Mr Murphy: I think it is unfair. The evidence does not show that. John may make a comment.

  Q51  Dr Naysmith: I am going to ask Dr Low in a minute.

  Mr Murphy: I cannot comment. All I have seen is that there was a document that showed the estimated cost of providing the service in ENT. It had three procedures and hearing aids which came to a sum that was greater than the cost of the PPP. I do not believe the PPP was at any other cost than a cost-saving to the hospital.

  Q52  Dr Naysmith: Dr Low, would you like to comment on these matters?

  Dr Low: Yes. There has long been animosity between audiologists in the NHS and people who fit hearing aids privately.

  Q53  Dr Naysmith: I will ask the NHS audiologist in a minute!

  Dr Low: Yes, I am sure. As you will have seen from the evidence from the Hearing Aid Council, the current regulation of the profession of audiologists is "not fit for purpose". That is their expression and I am not sure I would go quite so far. It is an entirely different training route for the two. When this contract with the independent sector was put in place, the regulator of the independent sector would not regulate their activities while providing NHS services. Therefore, the clinical governance, the responsibility, had to be taken by the head of audiology in each hospital. Some of them did it very well; some of them did it less well. It is very difficult for an NHS head of audiology to manage a private sector contract. It is very important that these large-scale contracts have the appropriate clinical governance and have the appropriate quality systems. But there is no doubt that the MRC's measurements showed that the private sector was capable of fitting routine cases—not the specialist difficult cases but routine cases—to a standard which at least matched that of the NHS. The cost of those contracts is very similar to the proposed tariffs inside the NHS for a similar activity and the volumes were relatively low. I believe that if the volumes were higher, an even better commercial arrangement would be entered into. I do not think there is a huge difference between the private sector and the NHS delivering in an acute care setting.

  Q54  Dr Naysmith: Ruth, do you have any experience of managing a private contract?

  Mrs Thomsen: Yes. We had PPP come into Charing Cross. Like John said, we are very good at looking for money, finding it and implementing it, and they offered us some services through PPP. We had reservations but we had a waiting list and we had patients who wanted a hearing aid fitting as soon as possible. We chose a company where we felt confident because the trainer within that company was NHS trained. It was a stick-to-your-own feeling. Our PPP was fine. We had issues about data collection. We still have issues about data collection. We have not had the facts and figures through from the company yet.

  Q55  Dr Naysmith: Do you mean there were not proper records kept.

  Mrs Thomsen: No. They kept them but to make it compatible with our service, we just have not had them yet. They have been sent; they were incompatible. It is a logistical issue. Historically, I think there has been a problem of them and us between the dispensers and the NHS audiologists. I have worked on both sides of the fence—not in dispensing instruments but in manufacturing, so I have produced instruments for the private market as well. I think the private market has a role to play. We welcomed PPP when it came because it really filled a stop-gap of doing those waiting lists. My main concern with the Hearing Aid Council and the fact that that is changing over—and I welcome that and I welcome that they are looking at proper state registration for hearing aid dispensers. It is the maverick side of it I have real concerns with. That in terms of, probably every week, maybe every fortnight, because I see patients every day, I listen to another sob story of some kind.

  Q56  Dr Naysmith: What can we do about it?

  Mrs Thomsen: The Hearing Aid Council and dispensers are getting their shop in order. They are looking at a foundation degree, they are looking at a uniform qualification, where people can then become state registered and the boundaries will break down between the NHS and the dispenser. There will be a proper qualification in place that will be recognised, and we can work with that and go forward, but that will not be in place until later. They are looking for bids for foundation degrees now, so the foundation degrees will not start until September 2007. The foundation degree is a two-year degree, an "earn and learn degree" as they call it, where they are part-time, so they will be working under someone else but they will not be qualified for two years. It says here that in 2008 they will be coming. It will be 2009 when they are fully qualified. They will be in the workplace, working under supervision. One of the main concerns I have is that the supervision is at the end of the phone sometimes. That is a real concern for me.

  Q57  Dr Naysmith: Do you want the last word, Mr Murphy?

  Mr Murphy: Yes. I think what you are asking for can probably be done by contract. The compliance levels can be put in the contract, as it was with the PPP. I do not share Ruth's opinion of what happened. We did not do a PPP at Charing Cross. I would be interested to find out who did it, but we did not have that experience. We believe that within the contract of the current PPP there is enough regulation and compliance levels and targets for the NHS to get the service up they are paying for. I think we have delivered it.

  Q58  Chairman: With referrals to PPPs, you normally refer on to the independent sector. Is that normally done on the basis of the need of the patient? Obviously a medical intervention would be in the hospital. Are there different levels of referral? We had this debate last year, when we looked at the Independent Sector Treatment Centres, as to whether they get all the cherry picking.

  Mrs Thomsen: There were very strict criteria. It was the basic, direct referrals or the patients who had been through the system already—because, as you can imagine, every patient who had a hearing aid needed changing over. A patient is a patient for life. We had their medical records, their details, and if we knew it was a basic hearing loss due to the ageing process then that would be generally quite straightforward patient so they could test, fit, follow-up. If we had good GP letters which gave us the proper details of the patient, we could see no other underlying causes and they had followed our protocols that had been sent out for referral, then we could triage those letters and obviously put some new patients their way as well. I would just like to say that I think it was unfair for PPPs in a way because they were in short bursts. I think the contracting is great, and if you have really stringent rules and regulations when you put into place these contracts, that is great, but if there are problems you need to give them time to be ironed out. The PPP came and went when the ring-fenced money went and the RNID stopped it. A lot of the anecdotal evidence I have gathered on PPP—which is not great because people will always moan rather than tell you the good stories—is stuff that could possibly have been sorted out, but then the PPP contract was finished, and you did not have time to put those checks and measures in place and address the quality issues that you did not get when you were running those contracts.

  Q59  Chairman: The referral was your referral, as opposed to the choice of the provider.

  Mr Murphy: Yes. The referral came from the hospitals. They decided who would be referred and they referred through to us. Also, when the ring-fencing went and the money was not available, the majority of hospitals continued to use our service and gave it additional contracts, so that, from the commercial point of view, proved that we were doing a good job. As I say, the majority of hospitals carried on and found the money from other sources, so they were motivated to find the money from another source to carry out a contract that would reduce their waiting lists.


 
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