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'Choice' in the NHS - liberal or not?
Three blog posts have caught my attention today: this from Lib Dem Voice, this from Cicero and this from John Hemming MP. All are on the subject of the National Health Service.
First up, Grace Goodlad's post at LDV. She rightly attacks the government's PFI schemes - a wasteful, poorly designed approach to funding any project, let alone something as important as healthcare. But rather than identify mismanagement, lack of proper structures and lack of critical oversight as the cause of the problems in the NHS, she identifies choice as being to blame. This is, to my mind, most odd, especially as she correctly states that:
As good Liberals we should all be backing the concept of choice in public services – patients should be allowed to choose appropriate treatments that are accessible and convenient to them.
I think that's a rather minimal case for choice, but it makes sense and ticks all of the liberal boxes - freedom, diversity, empowerment. Freedom to be treated where you prefer, diversity of options to choose from, and empowerment for patients to demand better services. But she quickly amends this statement by saying:
Fine – I agree with all that, but what price choice?
This question goes to the very heart of not just the debate on health, but the debate on government in its entirety.
It's at this point that I must return to the earlier point - that Goodlad's case for choice is incomplete. It's not simply the case that choice makes people feel a little better about their circumstances; that by choosing where to be treated they might feel as though they're getting a bit more control over things. This is important, but it's the consequences of choice that really matter.
To explain the issue further, I turn to John Hemming's recent post. In it, he recounts the tale of an NHS doctor who, disillusioned with the management of the service, went public with his observations via a blog entitled 'Angry NHS Doctor'. Or rather, he did so until the management uncovered his identity and ordered him to stop posting or lose his job. Now, to be fair, it has to be said that most of what was posted was an angry, even offensive, rant. But it certainly throws a different light on the view that the NHS is having its 'best ever year'. The one interesting revelation was his casual assertion that NHS waiting list figures are, seemingly, routinely fiddled:
8 year old kid from school. Fell over grazed his knee. Played football for 30 mins after injury. School not happy to take responsibility to wash graze and give him a Paracetemol. Poor kid - waited 4 and 1/2 hours – (3 hours 59 mins Mrs. Hewitt - don’t worry we fiddled the figures so that we had a 100% target figures).
This is where choice matters. You, and I, and the Health Secretary cannot see what goes on in every hospital in the land at all times. It's especially bad for the Health Secretary, who is the first and only democratically-elected person in the NHS chain of command. Believing in central change management, the government has, for most of the last nine years, pursued a policy of central control, informed by statistics and reports emerging from the NHS bureaucracy below. This is often referred to as 'target culture'. If a hospital is failing, your best hope for that failure being addressed is to hope that a) that failure is recorded and b) that someone, somewhere on the NHS chain of command notices that failure and does something about it.
The problem, as should be apparent to anyone who has ever worked in an organisation which uses inspections, targets or statistics as its primary means of identifying success or failure, is that getting good figures has relatively little to do with treating patients well. Figures can be fiddled, statistics can be massaged and inspection reports can only show what the inspectors saw. No wonder Patricia Hewitt thought that the NHS was doing so well - it's probably exactly what she was told.
Choice does two things. Firstly, it short-cuts the process for individuals; if your present hospital is failing, you can go elsewhere. Secondly, it provides an alternative means of measuring hospital performance. 'Target culture' tries to gather information about the NHS through statistics which, supposedly, reflect some objective measure of performance. Leaving aside the question of their inaccuracy, it's not even clear that what one person regards as 'objective' criteria will be regarded as similarly objective by another. 'Choice culture', on the other hand, says that each individual's assessment of performance matters. Rather than using statistics and bureaucrats to measure performance, choice turns this power over to individuals who actually use the service - the only people with no incentive to lie about their opinions. Indeed, people who are using a hospital have every incentive to be critical about failings in that hospital - their life may depend on it.
If the hospital treating you has a problem with MRSA, would you be comforted by being told that, overall, the hospital has good statistics for the last five years? I doubt it. Would you turn a blind eye to dirty wards, long waiting times or overworked staff? No, you wouldn't. Choice gives people more than just a way of choosing about their own treatment; choice gives people a way of improving the system for everyone by voting with their feet and rejecting substandard service. To say that restricting choice might somehow solve these problems is an act of incredible faith in a bureaucratic system that has shown no signs of being capable of tackling them in the last ten years.
Furthermore, as liberals it is our first duty to be on the side of the people against overmighty institutions, be they governments or true corporate monopolies. The NHS is the largest employer in Britain, a tax-funded service with considerable resources at its disposal, representation at the highest levels of government and a vast bureaucratic machinery. It is also the beneficiary of considerable public goodwill - we want the NHS to succeed. But for precisely that reason, it needs to be exposed to greater choice, greater accountability and greater scrutiny. The centralised mess that is the Department of Health needs to give way to a decentralised system, more responsive to people's needs and delegating greater authority to people with real expertise - the doctors and nurses on the wards. We need to cut out the middleman and allow patients and doctors to engage more directly, instead of being shuffled around like pieces on a board to satisfy government PR criteria. In my opinion, these arguments are in favour of more choice, not less.

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You're completely right. Too often (in fact almost always) choice has been presented as some sort of appealing, nice-to-have thing.
It's not. It's essential. If it's not introduced, the public health system in the UK is going to end up totally on its knees.
No 'you'll get what you're given because we only have one sort' system has ever worked effectively in the long run.
I'm certainly in favour of choice wherever possible as I agree that is the most effective way of signalling that a service or product is not up to standard. People can vote with their feet much faster than a governmental agency can identify and deal with problem.
The problem, as with all public goods or privately provided natural monopolies, is that the 'consumer' cannot exercise choice in the purest form of that word. For example, the provider of water to my house is Severn Trent. It charges a certain amount and provides a certain level of service. If I'm disatisfied though, I cannot just 'choose' to have my water provided by Northumbria. The fixed cost of providing the infrastructure is too great a barrier to entry for other competitors.
Something similar is at work in health care. Although private hospitals do provide competition and choice, the vast majority of people do not have enough surplus income to truly enter the market, nor does the provision of medical services and drugs strictly follow 'consumer demand'. The idea of choice in health care, as with education, is therefore slightly illusory to all but those with incomes large enough to genuinely pick and choose their private providers.
Choice runs into another problem as well. When the NHS was set up it was structured to provide the 'goods and services' of medical attention free at point of use. This was a profound mistake, because price signals are an extremely important part of conveying information to private individuals about the the value of the products and services that they are purchasing. Price also compels a system of prioritisation within an organisation. Since these signals have always been lacking in the NHS, and because medical services are not in fact as free as the air, a vast bureaucracy has had to come into existance to ration health care if not through pricing, then through waiting lists.
I'm not going to pretend that I have the answers, but there are considerable problems with the concept of 'choice' in relation to publically provided natural semi-monopolies.
Are the barriers to entry for healthcare providers that high? I don't think comparison with water providers is the right one.
Re. 'barrier to entry' for users - the whole point is that use of these private providers comes free at the point of use, and the competition brings the price down both of what the state-owned facilities charge and what the private ones charge.
E.g. the doctor that I go to here in Prague is technically a private clinic, but it's paid for out of my health insurance, which is a certain % of my income like NI. I'm able to choose no matter what my income is - anyone here can go to a private clinic. As a result, the whole system is so much more efficient that a much better level of care can be provided - antenatal care is way better than in the UK, for example.
The Czech system has flaws that need ironing out, but its future is much rosier than the NHS'.
I think a few of my points have been misunderstood here, perhaps I did not make them clear enough.
I agree that the water utility example I mentioned is not directly comparable, which is why I used the word 'similar' rather than 'same'. However, it remains a good illustration of how barriers to entry in the form of infrastructural investment can dissuade potential competitors without the same resources as the state. I believe that these barriers are an issue for private health firms who have to invest a great deal in building and equipping a hospital before it is ready to treat patients.
My argument is that these costs involved in providing the infrastructure and training of personnel for public goods like health care mean that the cost which is passed on to the consumer in a private system is too great for people on average incomes to sustain.
I'm afraid I don't entirely understand how your Czech example solves the problem. Are your health contributions levied by the state as a form of compulsory insurance and hypothecated taxation, or are you paying for private insurance? Presumably the privately run hospital treats people free at the point of use, but then passes the bill on to the state? What if you're unemployed? What if your income is very small? Presumably the state just picks up the difference. I find it very difficult to believe that people's contributions even over a life time would cover the cost of extensive and expensive medical treatment.
I don't know the details of Czech fiscal policy but I would strongly suspect that some of the tab is being picked up out of general taxation.
Correct me if I'm wrong, but it seems to me that the Czechs have choice because they are in the happy position of having the state pick up their private medical bills wherever they choose to go. There must be some kind of rationing going on though, or the bills would astronomical.
Please explain more about how a system where 'anyone' can visit a private clinic free at point of use is funded.
James - I'm paying compulsory health insurance as a percentage of my income, as in France, Germany, Austria, Belgium etc. If you're employed, you pay part and your employer pays part. If you're self-employed, you pay it all yourself, but a smaller percentage(like NI).
The state picks up the tab if you're registered unemployed, on maternity leave etc.
The private clinics can't just bill whatever they like. They're reimbursed by the insurance companies at a set rate which is the same as that received by a state-owned clinic.
What your insurance covers is determined by the state, so there's no postcode lottery as in the UK, where what you get depends on where you live. And what it covers here is good. Czechs with experience of the NHS don't tend to be very impressed.
p.s. the concept of a private clinic here and in the UK is pretty different. It's not a two-tier system, in which the private clinics are in a totally different world - because it's not a system in which the rich opt out. I didn't even realise at first that my doctors' actually was privately-owned.
In fact nearly all primary care in the CR is now private - I didn't realise that. The majority of hospitals are still state-owned, although a good many are private.
Hospitals aren't like loaves of bread. There aren't millions of them all across the country. And, fair enough, neither are they like the road network where there is a state monopoly. They're somewhere inbetween.
But for any specific ailment people typically have a choice of one, maybe if they live in one of the 5 biggest cities, two hospitals. There can never be choice in the NHS unless at least twice as many hospitals existed.
Market forces won't work where there is one stall in the marketplace.
Czechs like to go to the next town if they think it's a better hospital. I saw a poll in which only 19% said nearness was their most important factor in choosing a hospital.
But that's them. If you can't imagine anything could work any differently from the NHS, then that's what you'll be saddled with.
Healthcare isn't a natural semi-monopoly in most of England.
In urban areas and areas close to conurbations, there are often several NHS hospitals as well as independent providers to the NHS.
A friend of mine recently experienced Patient Choice. He chose the NHS hospital that had the shortest wait for his tumour to be removed. It wasn't in his city - but it wasn't far away.
As choice becomes a reality in the NHS, the most efficient providers will grow and the weaker ones will be replaced.
We need to ensure that all benefit from choice but choice (and competition) will be a great driver of improvement.
And, of course, ensure that those in rural areas have good quality provision. Where healthcare is more akin to a natural monopoly, there is a case for basing arrangements in "voice" rather than choice with new forms of community control and ownership - perhaps building on the mutual form of Foundation Trusts.