'Turnaround Industry' costs millions YOU MUST READ THIS?


The cost of the NHS ‘turnaround' policy to combat £512m NHS debt could be running into tens of millions of pounds after it emerged this week that top UK accountancy firms have undertaken 55 ‘turnaround studies'.

New Department of Health figures made available to @ctivist show that since the start of t he year, PwC consultancy has undertaken 23 turnaround studies, KPMG 14, Ernst & Young eight, Deloitte five and five were undertaken by other consultancies.

It is estimated that consultancies charge around £300,000 for two to three months' work – suggesting the figure spent on consultancies so far is around £16m.

But the overall cost of ‘turnaround' policy is likely to be much higher as the DoH also said that 58 NHS Trusts and PCT's had appointed ‘turnaround directors'. The DoH said ten strategic health authorities have also appointed turnaround directors.

Turnaround consultancies produce so-called ‘turnaround plans' for Trusts and PCTs which include efficiency savings, new ways of working - and job cuts.

It is understood that several Trusts have also set up in-house ‘turnaround team' comprising several staff members to implement the plan - and add to the cost.

But many health workers are criticising the policy. One told @ctivist that the ‘turnaround consultancy' at his hospital had identified changes that should have been made by the NHS management. Others warned that service standards could slip as a result.

A spokesperson for Department of Health said the consultancies represented good value for money because they would save far more than they cost.

The news comes as Amicus and several other unions gear up for a fight over privatisation and job losses in the NHS.

Some 12 unions are considering a series of local of local and national days of action including rallies at TUC and Labour conferences and a lobby of parliament.


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