A retired GP writes to his local MP explaining the issues in the possible privatisation of Weston General Hospital. Brilliant Letter

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September 18, 2013 by Protect Our NHS

DR * ******

Wednesday, September 18, 2013
John Penrose MP
House of Commons

Thank you for your letter of 14th August.

I anticipated that we might have to have a discussion of the meaning of the word franchise. A franchise is a formal agreement for someone to sell a brand’s products or services in a particular place, in exchange for a payment or part of the profits, and/or it is a right granted to an individual or group by a public authority, such as the right to use public property for a business.

Clearly “franchise” refers to a business arrangement. It follows therefore that what could happen to Weston Hospital is a symptom that health care there (and by precedent, everywhere in the UK) is making a transition from being a service (as in National Health Service), to a business arrangement, where a product is sold to customers by a private health corporation, who pay for the product first via their taxes, and later on, no doubt, by some form of insurance. If Weston is franchised out to a private health corporation, it is taking, inescapably and indisputably, a step in the direction of privatisation, even if you would deny or question that what is happening is an explicit and complete example of a privatisation.

So I must ask you – will you accept that franchise is at least a step in the direction of privatization?

The second question that I would put to you is – how can it be more efficient in cash terms for a private contractor to provide a product for the NHS, given:
• The turmoil and administrative work associated with granting the franchise, this present correspondence being an infinitesimally small part of this process?
• The fact that a private corporation’s primary responsibility is to make sure that their shareholders get a bigger dividend each year?
• The fact that generous salaries and bonuses must be paid to the directors of the private company?
• The fact that the company is very likely to pay large fees to tax accountants in order to minimize or annihilate the amount of tax that they will pay in the UK?

Please explain how this can come about.

Third, I would like to put to you again a point I made in my previous letter. Several Cabinet members have financial stakes in private health corporations. Please tell me the exact number of Cabinet Ministers who have such financial interests, their names and their interests, and then tell me whether or not, in your view, their financial interests will influence their decisions regarding the way in which the future of Weston Hospital and the NHS will be handled?

Fourth, do you agree that the chair of the CCG should resign from her post on the North Somerset Clinical Commissioning Group on grounds of conflict of interest since she is also a consultant for Capita Symonds Ltd and her husband is on the board of UHB?

Finally, I would be grateful if you will ensure that Serco is required to withdraw its interest in the Weston franchise on the grounds that Serco is under investigation for fraud.

Many thanks for your time and trouble in answering these five questions.


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“That’s the standard technique of privatization: defund, make sure things don’t work, people get angry, you hand it over to private capital.” Noam Chomsky

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