Tuesday, 14 June 2011

NHS Reforms, Southern Cross and Cherry Picking

Southern Cross 

  • Teetering on the brink of financial collapse, seeking an orderly wind-down to avert administration.
  • Axing 3,000 jobs.
  • 164 (28%) of its care homes in England breached CQC standards, that is, impositions imposed for " non-routine conditions."
  • Ready to relinquish control of more than 250 homes to landlords.
  • Cannot meet its £230m yearly rent bill.
  • Rival operators (Bupa, Four Seasons & Bondcare) are ready to (cherry) pick off the most profitable outlets.
 Dave and NHS Reforms

  • "Our  changes will secure fair competition – not cherry picking … …"
 Business and Profit 
  • Every business operates to make a profit.
  • A business might have other goals but if they do not make a profit they will have to close.
  • A business operating in a NHS market must cherry pick to make a profit otherwise it will have to close.
The last bullet point is rather simplified and does not take into account as to whether a business is a small local company or a large national or multi-national, nevertheless whether a business is large or small it will cherry pick - it would be foolish not to.

Anna :o]


ned ludd carer said...

The above explains well why trying to provide care on the basis of the profit motive is likely not to work very well.
There are other charity/altruistic/user run 'third sector' models that work but they seem to be denigrated because they don't make a profit (even though they don't want to). I've been a Trustee of one doing a good quality job but it is gradually being pushed into 'being a business' partly by social pressure.
It seems not enough these days to do something good because it's good - it has to be profitable as well - why?

HyperCRYPTICal said...

Hi Ned

I can't give an answer to your question my friend as I don't know, yet fully agree with you.

The third sector provides welcome and needed input in areas of health - although some are government quangos, agencies disguised as charities. Perhaps all that are truly altruistic are being pushed out, ignored as they do not follow government ideologies?

Anna :o]