Oversight of private patient units

Response to this request is long overdue. By law, under all circumstances, NHS Improvement should have responded by now (details). You can complain by requesting an internal review.

Dear NHS Improvement,

Many Trusts and Foundation Trusts compete in the market for private patients, with some having large private patient units. Anecdotally we understand that many of NHS organisations don’t understand whether they are making a profit from private patients, and that they negotiate terms with private medical insurers which are often much less favourable than those negotiated by private hospitals.
Please answer the following questions:
1. Is it the authority’s understanding that NHS organisations should not lose money on private patients, since to do so would mean that public/ NHS money was subsidising NHS care, and that this would be a breach of NHS principles.
2. In its role as regulator of Trusts/ FTs, does the authority routinely review whether Trusts are making or losing money from private patient activity.
3. Does the authority know what proportion of Trusts which generated over £2million of private patient activity in 2019/20 measured the net profitability of this activity.
4. Given that measuring profitability requires the allocation of costs shared with NHS activity, does the authority prescribe a set methodology by which Trusts/ FTs measure the profitability of private patient activity.
5. Does that authority know how many Trusts/ FTs made a financial loss on private patient activity in the year 2019/20.
6. Overall, what are the key steps the authority takes to assure the department of health/ treasury/ government that public money is not being used to subsidise private healthcare by losing money on private patient activity.

Yours faithfully,

Will Hacker