NHS: the shape of things to come

More upheaval in the health service as jobs fly out the A&E door, coupled with the announcement of a new public/private partnership for pathology services

Nurse
NHS workers, including nurses and doctors, are part of a restructuring that will see 1,700 jobs lost. Photograph: Getty

Two different announcements yesterday shed light on the future shape of the health service and the changing nature of NHS employment.

On the one hand, the Guardian reported the sacking of 1,700 doctors, nurses, dentists, dieticians and many other health specialists. These posts are disappearing due to the coalition government's shakeup of the NHS and because of cuts. The Guardian report says the Department of Health is reducing its programme-funded workers to zero, "in line with 2010-11 budget and business plans".

On the other hand, yesterday also saw the announcement of a new private/public partnership for pathology services. GSTS Pathology, a joint venture between commercial company Serco and Guy's and St Thomas' NHS Foundation Trust, which employes 671 staff, is taking on a further 310 NHS staff on secondment from King's College Hospital Foundation Trust. All the staff from the renowned Clinical Diagnostic Pathology Service at King's will in future work for GSTS.

GSTS has been awarded a 10-year contract valued at around £300m, starting in October, as the principal provider of pathology for King's. The new partnership thus formed will be the UK's largest provider of pathology service and is the first tripartite joint venture between different NHS foundation trusts and the private sector.

The new, three-way organisation will provide pathology services for Guy's and St Thomas's, King's and Bedford hospitals, as well for King's Health Partners Academic Health Sciences Centre. The partnership claims that it will have a turnover of £1bn and will be well-placed to take on contracts for further pathology services.

The NHS pathology market is valued at around £2.5bn a year, with demand for diagnostic tests growing at around 8%-10% a year.

In 2008, a report by Lord Carter of Coles into pathology services in England criticised the fragmentation of pathology services and made a series of recommendations, including the creation of a small number of high-quality pathology facilities.

The partnership and employment structure means the new organisation remains majority NHS-owned, with staff from the NHS, including the new staff being seconded from King's, retaining their existing NHS terms and conditions, including pensions.

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