Election 2015: Labour proposes profit cap on NHS contracts

Paul Snell is managing editor at Supply Management
30 March 2015

The UK Labour Party has announced it will cap the profit private sector providers can earn on NHS contracts worth more than £500,000.

Launching the opposition party’s election campaign, leader Ed Miliband said there would be a 5 per cent limit on profits for private suppliers, and the party would repeal the Health and Social Care Act introduced by the current government.

He said in a speech in London: “We’ll scrap David Cameron’s market framework for the NHS and stop the tide of privatisation. The NHS will be the preferred provider. No company working with the NHS will be able to profit by cherry picking: rejecting patients with the more complex and expensive needs for their own advantage."

“And, for the first time, we will cap the profits that private health companies can make from our National Health Service. The standard rule will be a 5 per cent cap. Because the money we pay for our health care should be invested for patient care not for excess profits for private firms.”

This month think tank the King’s Fund said it would be “extremely unlikely” the party would be able to exempt the NHS from EU procurement rules, as it has proposed.

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