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Failing NHS Services will No Longer Receive Taxpayer Bail Outs

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Some hospital services will not receive taxpayer bail outs when faced with financial difficulties according to the Department of Health.

In their response to last weeks NHS Future Forum report on reform plans, they stated that “poor quality” departments would not be “propped up with subsidies,” anymore as they announce that competition could be important to improving services.

Currently, if an organisation is struggling financially they can receive payments from the government as a ‘bailout,’ and services that are extinguished tend to be so due to “service configurations” as oppose to being declared insolvent.

Initially, Ministers were set to announce services which were seen as invaluable and therefore eligible for extra support regardless of how many patients were seen and how financially viable they were deemed. However, under reformed plans, the “failure regime” will ensure that only successful services continue to run.

The document states, “managers and clinicians expect to be held accountable for the outcomes they achieve and for the system to reward success. This won’t work if we penalise successful organisations and simply ‘bail-out’ overspending.

“We will have an effective failure regime that ends the culture and practice of hidden bailouts and gets the right incentives into the NHS, whilst protecting essential services.”

The NHS Confederation confirmed that the health service reforms along with the need to make £20billion of savings by 2015 would “inevitably” mean changes in the way care is delivered.

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