Private Firms Earn £1.6bn Profit from NHS Contracts, Sparking Calls for Caps
Research by the Centre for Health and the Public Interest reveals that private firms providing services to England's National Health Service (NHS) generated £1.6 billion in profits over two years from contracts worth £12 billion. The findings have triggered strong criticism from Members of Parliament, who described the profit levels as scandalous and urged the government to impose a cap on maximum earnings, similar to regulations in children's social care. The analysis highlights that £2 billion of these contracts went to companies with owners based outside the UK, including £533 million to entities linked to tax havens like Jersey and the Cayman Islands. Additionally, £353 million was used to pay interest on debts, particularly by private equity-owned firms. Critics argue these funds could have paid for thousands of doctors or nurses. While industry representatives claim the figures oversimplify a complex landscape, political leaders are demanding greater transparency and stricter controls to prevent taxpayer money from leaking into offshore accounts and excessive corporate profits.
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Private Firms Earn £1.6bn Profit from NHS Contracts, Sparking Calls for Caps
Research by the Centre for Health and the Public Interest reveals that private firms providing services to England's National Health Service (NHS) generated £1.6 billion in profits over two years from contracts worth £12 billion. The findings have triggered strong criticism from Members of Parliament, who described the profit levels as scandalous and urged the government to impose a cap on maximum earnings, similar to regulations in children's social care. The analysis highlights that £2 billion of these contracts went to companies with owners based outside the UK, including £533 million to entities linked to tax havens like Jersey and the Cayman Islands. Additionally, £353 million was used to pay interest on debts, particularly by private equity-owned firms. Critics argue these funds could have paid for thousands of doctors or nurses. While industry representatives claim the figures oversimplify a complex landscape, political leaders are demanding greater transparency and stricter controls to prevent taxpayer money from leaking into offshore accounts and excessive corporate profits.
The Guardian