Staff need to be consulted on NHS Hull plans for a social enterprise

28th October 2009

Unite, the largest union in the country, is calling for a ballot of staff at NHS Hull over proposals to hive off NHS services in the city into a social enterprise.

Unite fears for the future of joined-up services in one of Britain’s most deprived cities - with high rates of cancer, heart disease, obesity and teenage pregnancy - if the social enterprise experiment goes ahead.

Unite said that a proper consultation process for the staff was not in place and that the social enterprise could be imposed ‘by stealth’.

Unite, along with the other staff side unions, will be asking managers at the trust, which covers 250,000 people, to hold a ballot of the 1,500 staff, as to whether they are in favour of transferring to a social enterprise to be called City Health Care Partnership.

The call comes in the wake of the Department of Health’s recent announcement that the NHS should be ‘the preferred provider’ of choice. This means that outside providers can only be asked to tender if a trust is deemed to be failing and has not taken remedial measures.

Managers at NHS Hull will be asked to reconsider their plans for a social enterprise, which are commercial organisations, one step removed from the NHS proper, that can win – and lose – contracts to provide services to the NHS for a limited period of time.

If the social enterprise loses its contracts to, for example, a North American private healthcare company in five years time, jobs could be lost and services to the public could become fragmented. The ethos of a NHS providing a unified, joined-up service for patients could disappear.  

There is also the issue about whether a social enterprise would pay VAT – a tax from which the NHS is currently exempt. Such an additional financial burden could question the whole viability of the social enterprise experiment.

Unite regional officer, Tony Randerson, said: "It is clear that social enterprises are a leap in the dark in terms of provision of services; the employment conditions and pensions of NHS staff that could be severely eroded, or even lost; and the viability of the financial model proposed, if VAT is charged on its services.

"You could get a situation where a visit by a health visitor to a young mother suffering from postnatal depression will result in the organisation having to pay VAT when it comes to internal accounting. That’s unacceptable.

"We want to make the public aware of what a social enterprise will actually mean for families and communities in Hull - one of the most socially deprived cities in the country. Social enterprises can’t be imposed by stealth. The people of Hull and the NHS staff involved deserve the widest possible consultation."

ENDS

Tony Randerson 07958 514683; Karen Reay, national officer, health 07798 531 004; David Fleming, national officer, health  07798 531013; Shaun Noble, communications officer (health sector) 020 7420 8951 or 07768 693 940


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