What are the benefits of competition?
-competetive prices (therefore lower)
-greater choice for consumers and workers
-higher incentives for companies to invest in innovation
-better information for consumers
What are the market failures within the healthcare market? To what extent do you think that public sector provision (in the form of the NHS) is the most effective type of intervention?
-disproportionalities among different hospitals in different regions
-inefficient way of spending money
Privatisation allows competition and therefore improves the quality of service. However, it can lead to higher costs of this service (no government funds and subsidies). Government could also set a special tax on health care or subsidy more (but this is of course opportunity cost).
Is this just the first step towards privatisation of healthcare?
In my opinion it could lead to a greater division of health care system in the UK. People who will be able to afford private health care will go to private clinics and people with lower incomes will use public hospitals, which would improve the situation for both.
Do you think private ownership of hospitals with significant debts is a good strategy?
In my opinion private ownership gives the opportunity to solve the difficult financial situation both for patients and owners. Everybody would gain because if a hospital is in deep debt it is not able to provide best-quality service and, therefore, patients loose. So, if there is a possibility of changing this situation (making profits from the company’s perpective) it will be worth for them to invest their money in a indebt hospital and help the patients.
Why do you think Unison have argued that Circle’s takeover is ‘an accident waiting to happen’?
Because sometimes privatisation leads to a situation when clients are forgotten and they lose because profits matter the most for the owner. Morover, Circle had no previous experience of running a public hospital and, now they will have to deal with huge debts.
Does privatisation mean that profits will be more important than patient care?
Very often to make a profit you have to treat the patient better because he/she is your customer, therefore he/she demands a good-quality service and if you a company does not realise this they will not make profits. Especially, in health-care patients are very important. However, in order to provide better service and reduce the deep debt, a new owner will have to make cuts and save money, possibly causing harm to the patient.
That's what I think,