Commissioning - Health Committee Contents


Examination of Witnesses (Questions 60 - 69)

THURSDAY 22 OCTOBER 2009

PROFESSOR GWYN BEVAN AND DR HAMISH MELDRUM

  Q60  Dr Naysmith: Do you have any views on this, Professor?

  Professor Bevan: The work we have been doing is essentially trying to introduce a population perspective into the choices PCTs have to make. Working with PCTs, we have found that we have this social process where the stakeholders are involved, which includes GPs, hospital doctors, patients, the public and managers and so on. You are able to show to them the impact the different options are having on the health of the population and what it costs, and they make choices. For example, we are doing work in the Isle of Wight on prevention and treatment of stroke. Stroke causes a massive burden of disease in England: there are about half a million Quality Adjusted Life Years every year from premature mortality and disability. The Department of Health's two main priorities are to ensure that patients are treated in specialist stroke units—and the last Royal College of Physicians stroke audit showed that only 50% spent most of that on stroke units—and thrombolysis—which you have to have within the first three hours of a stroke to break the clot. Of these acute interventions, putting people in a stroke unit would reduce the burden of the disease by about 6%, and thrombolysis by about 1.4%, so the huge burden of disease that we are all troubled by will not be tackled by these acute interventions. To treat thrombolysis on the Isle of Wight would mean 24/7 helicopter cover to get patients to the mainland, and we worked out that eight patients a year would benefit from this. The question is: If there are only limited changes you can make in a given year to a system like the Health Service, is this the change you really want to make for population health? If you have a stroke, of course you would quite like to have thrombolysis, but in terms of population health is that a helpful thing to do? We found that by displaying information in a way that people can visualise and understand, you do get stakeholders to agree on what the hard choices ought to be, but it is a radically different way from the methods that are conventionally used to help people set priorities.

  Q61  Dr Naysmith: We are moving into a time when there is probably going to be restriction on public spending. What effect do you think that will have on the current commissioning set up?

  Professor Bevan: I agree with the point Dr Meldrum made earlier, that it is going to be even more important that we find ways of getting the public involved to make these hard sorts of choices. The process we have been working on enables the public to do that. If you can have a proper debate that involves the public, then you are in a much better position, it seems to me, for the primary care trusts to present these difficult choices to the public and to the media.

  Q62  Dr Taylor: Is one of the problems with the current system of commissioning that too many cooks are involved? We have PCTs, GP commissioners, NICE, Tsars, clinical networks, patient choice.

  Professor Bevan: There are two different things. One is the drivers of change. As you say, there are PCTs, PBC and patient choice, so in effect we have three different sets of purchasers. The whole idea about paying providers on cases through patient choice is not consistent with PCTs having a budget that they have to manage a population for. That is a tension. As regards the other issues, about people being involved and NICE and so on, we talked earlier about the need to get people involved across the care pathway to improve quality of care, and NICE provides useful evidence for that. It is not in that sense that there are too many cooks, because they are cooking different recipes, there are different meals—I am sorry, I must not get carried away with the analogy. We would say that you need to have a good process to which you can harness these different viewpoints and take the view for what is best for the population. That is the most important development.

  Q63  Dr Taylor: Is it not a huge argument for integration? Should not all these people be integrated together?

  Professor Bevan: Neither of us has expressed enthusiasm for the purchaser/provider split, but we have been working with PCTs at the moment and you can get the different stakeholders here, including local authorities, to look at the choices and provide their views. In the end, of course, it is the PCT which has to make the decision.

  Dr Meldrum: We do not need physical or organisational integration to get practical integration. I do not think it means that primary care needs to take over secondary care or vice versa and they have to be all in one, but they have to be working together. I am not sure if it is a case of too many cooks, but certainly the fact that there are so many types, in various places, of people getting involved shows that there is not one model that seems to work very well. It is not so much about the numbers of people involved; it is how effectively they are working together and whether the system helps them achieve that.

  Q64  Dr Taylor: Going back to integration, you have rather implied that if that happened we would have to have regional health authorities back. If you look at the whole programme of reforms of the NHS over the last 20 to 30 years, it has been a continual cycle of going back to what had been discarded before, so it would not be anything new to go back to RHAs and an integrated service.

  Professor Bevan: It is the old hymn about history repeating itself. I certainly would not say and I do not think Dr Meldrum would be saying that we should go back to as it was in 1974, because then we had this division between primary care, and hospital and community health services, and you would want to create a different form of organisation. The first time I got involved in the Health Service was doing research for the Royal Commission in 1978, when it was a heavily bureaucratic, hierarchical structure, and people found planning a rather strange concept which they seemed to liken to Stalinist five year plans really. We are talking much more about integrated organisations. I am thinking about this as a regional body, which would be challenging that organisation in terms of its comparisons of provider performance, what the needs of its population are and all sorts of sets of additional information, and saying, "Look, these are things we think you should develop." I have this idea that, as part of that, you would have annual meetings at which the local organisation would report to the public what they have achieved as had been set over last year: where they have done well, where they have not done well, how they are going to do. I have a different vision than going back to the past.

  Q65  Dr Naysmith: You would go back to the late 1980s.

  Dr Meldrum: In general practice I have seen FPCs, FHSAs, and then we went to DHAs, PCGs, PCTs. It is just a list of acronyms. I do not particularly want to see another massive organisational change. If we change the underlying system, I would like to see it evolving. You can change the way people behave and operate and the processes without necessarily having to have major organisational change. That may evolve, but I would want to see it ideally being done and evolving, and not going back but going to something better. If you want to ask me where in all that process I thought things worked pretty well, when we had DHAs—we had about 100 of them—maybe some of them were too small but at least you did have quite good integration of primary and secondary care at that time. But they were not allowed to last very long before they were changed again.

  Q66  Mr Bone: I would like to go back to something Dr Meldrum said on commissioning for the population. Your argument is that with public health improving it costs more because people then get chronic diseases. The biggest move forward has been the banning of smoking in public places. Should we not reverse that and encourage people to smoke because they are voluntarily laying down their lives for the rest of the population, reducing a huge amount of duty for the Government for the rest of the population? Would that not be the logic of your argument?

  Dr Meldrum: I did say that on purely economic terms we should not expect it in the long run to be cheaper, but of course the fundamental idea is that we are trying to get people to live longer, healthier lives. I am a passionate supporter of the smoking measures, but I was trying to make the point—which even goes back to the days of Beveridge and Bevan and the idea that with the National Health Service costs would go down—that there is no evidence in history or in any healthcare system, I am afraid, that the longer people live and such like the costs will go down. They tend to increase. But of course we must be trying to ensure that people live as long and as healthy lives as possible.

  Q67  Mr Bone: Professor Bevan, I was attracted to your radical approach using the Dutch model. I do not think we have ever seen in the NHS competition with purchasers.

  Professor Bevan: That is right.

  Q68  Mr Bone: But I am not sure how you can translate the Dutch model into a state-run health service. Would there be advantages to have competition between purchasers and how could we do that?

  Professor Bevan: In the 1980s we were thinking about GP fundholding and the idea which I and Kenneth Clarke had then—he was on a beach in Spain when he had the idea, so he says—was that patients would choose their GP and the GP would then choose hospital care. Right at the start there was the idea that you would have choice, being the purchaser. Alain Endhoven's ideas were very influential. He saw it as an integrated organisation, in which district health authorities would employ general practitioners and they could contract out if they were unhappy with local services. He thought that the better thing would be purchaser competition. How you do it, I agree, is going to be quite tricky. The Nuffield Trust will be publishing a report which explains how we might do that. In the Netherlands they started off from a system of having multiple insurers, so it was very easy to introduce competition there. You could envisage people being able to choose between neighbouring PCTs, but that is going to be a marginal thing. The other idea would be to allow private insurers to come in and organise services. Two things were very important in the Netherlands to get it to work. One is that they essentially have universal coverage through multiple insurers and people are free to choose different insurers and they are subsidising that choice. The same individual will pay the same premium to different insurers and then there is a complex risk adjustment formula, because the costs of health care are very skewed, so the most expensive 5% of the population account for 60% of healthcare costs. It is very important, given the choices people have made by these different insurers, that you adjust the risk profile of those insurers for the mix of risk that they have. They have also introduced things to ensure and protect competition to regulate quality. There is a complex set of regulatory arrangements you would have to have in place if you were to move down a radical reform of purchaser competition. When I talked to Professor van de Van from Erasmus who is working with me on this report, he described that in the Netherlands the government feels they can get out of having to deal with day-to-day problems of healthcare. There was a recent issue in the Netherlands where a hospital was threatened with closure. Under the system, they should have been able to leave that to these different organisations to resolve, but the government intervened because they felt, as Dr Meldrum says, that ministers cannot stand by and let hospitals close. Afterwards, however, there was a lot of criticism of the government acting in that way and it was pointed out that various providers had decided they were already going to try to move in to fulfil the gap in the market left by that hospital. There is a feeling now that if that issue were to recur, the government would probably stand back and let the get on with it.

  Q69  Mr Bone: Absolutely that can happen in Holland. I do not have a hospital in my constituency, we have two outside, but there is no way a private company could build a hospital in my constituency and then there be competition between purchasers as to whether they use that one or others. I do not see how you can do that in our system. I know we are talking about the purchasers, but you also have to be able to move between different providers, do you not?

  Professor Bevan: They do have selective contracting. At the back of this is the idea that in well-designed markets organisations will choose forms that minimise both costs of transaction and costs of production. It looks as if the most effective way of doing that is through an integrated organisation. We both have this thinking—although it has to be said, in all honesty, it has not happened yet—that if you were to create a proper regulated market, organisational forms would then evolve to provide the best form of health care. The way we describe this is as a thought experiment for the NHS. As you say, we are a very long way and it would be a very radical step from where we are now.

  Chairman: I would like to thank you both very much indeed for coming along and helping us with our inquiry.





 
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