Monday 23 May 2011

A Letter from a private Management Health Consultant 10 years from now

Disclaimer: All brand names in this article are fictional, sadly the Health and Social care Bill 2011 is not.

Thankyou for choosing DNK Private Health to conduct your market planning in UK Healthcare, our mission is simple, to achieve maximum profits for private healthcare providers seeking to enter the lucrative and fast moving world of the UK health market. Our teams of consultants have a proven track record in converting their expertise in competition law, break-up strategy and structural dependency into dividends for shareholders. Following the privatisation of Healthcare in 2011 we’ve been part of transforming private market share of NHS activity from 3% to 67%.


Our terms and conditions are attached to this agreement, regarding legal fees you’ll be aware that the move to GP Commissioning and mandatory foundation hospital status in 2013 has seen a 5 fold increase in the amount the NHS spends on competition lawyers. Speaking confidentially, in the old days intimidating a new GP Consortium with a reference to OfHealth (formally Monitor) would normally be enough. More belligerent cases would normally back down if we threatened to sue for damages under the act, once or twice we have to admit we even mentioned that involvement in a Cartel became a criminal offence under the Enterprise Act of 2002. That was 2013 when GP Consortia were so distracted mopping up administrators from the abolished Primary Care Trusts and Strategic Health Authorities to run the enormous budgets they suddenly inherited they couldn’t fight off a even basic legal challenges. Our customers know that the market’s changed, and the 8% spent on administrators in 2011 is now up to 20% to combat private health challenges.

More than ever our customers require high standard market and regulatory knowledge to beat the defences old style NHS bodies employ. Sharing concurrent jurisdiction under the Act, we can help with whether OfHealth or the OFT is your best choice. We can beef up bids for low-cost max profit elective surgeries with speculative letters threatening legal action for breach of competition rules and we currently handle over 200 complaints of that nature with OfHealth. We can help you place your price under the Statutory Maximum National Tariff to help you undercut NHS providers. Experience shows that the fragmentation of the NHS budget and increased legal costs mean that no Foundation Hospital or even medium sized GP Consortia can compete with a multinational when it comes to lengthy legal battles.

Long term our consultants can help you get a foot in this market and effectively neutralise competition in as little as a 5 year business cycle. In one case study we created a loss leading model in an urban area for low cost simple electives. We faced a GP Consortia with historical and traditional links to a local hospital able to mobilise union and local support for this old fashioned state funded model. Using multinational profits we could drop so far below the National Max Tariff the GP position became unsustainable, and thanks to our expert lobbying and influence consultants soon political pressure was piled on the Consortium with locally planted stories about NHS shortcomings. 5 years later and the local Foundation Hospital abandoned effective capacity over the chosen electives and we switch to the national maximum tariff allowing our customer a 50% increase in profit with no local competitors.
We call this break up and structural dependency. The UK no longer has a national plan for health so short business cycle exploits can reap massive rewards for shareholders. We thankyou again for your business and look forward to working with you.

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