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RESEARCH • DEBATE • POLICY • NEWS                                            Volume 16 Number 3, 2010

Measuring and
managing
performance

                                                                                             Improving
                                                                                        performance in
                                                                                       the English NHS

                                                                                       The performance
                                                                                   paradigm: potential,
                                                                                  pitfalls and prospects

                                                                            Health system performance
                                                                              management: quality for
                                                                                       better or worse?

             User fees in the Czech Republic • Evidence for policymaking: the ECHI initiative
England: Independent Sector Treatment Centres • Uzbekistan: barriers to physician workforce development
Eurohealth - World Health ...
Eurohealth
C
    Managing performance: what do we
    know?                                                         LSE Health, London School of Economics and Political
                                                                  Science, Houghton Street, London WC2A 2AE, UK
    If there was ever a time for putting an emphasis on           fax: +44 (0)20 7955 6090
    improving performance management then surely this is          http://www.lse.ac.uk/collections/LSEHealth

O
    it. At a time when economic resources are tight but
                                                                  Editorial Team
    Europeans continue to demand an ever more personalised
                                                                  EDITORS:
    approach to health care, it is of critical importance that
                                                                  David McDaid: +44 (0)20 7955 6381
    systems operate as cost-effectively as possible. They also    email: d.mcdaid@lse.ac.uk
    need to maintain high quality standards and be flexible       Sherry Merkur: +44 (0)20 7955 6194
    enough to respond to changing population need. Even           email: s.m.merkur@lse.ac.uk
                                                                  FOUNDING EDITOR:

M
    more fundamentally, health systems need to be held
                                                                  Elias Mossialos: +44 (0)20 7955 7564
    accountable for decisions that are made.                      email: e.a.mossialos@lse.ac.uk
                                                                  DEPUTY EDITOR:
    Better performance monitoring mechanisms can                  Philipa Mladovsky: +44 (0)20 7955 7298
    potentially help with these issues, but what has happened     ASSISTANT EDITORS:
    in practice? What do we know about how well they work?        Azusa Sato +44 (0)20 7955 6476
    This issue of Eurohealth focuses on this issue. It features   email: a.Sato@lse.ac.uk

M
                                                                  Lucia Kossarova +44 (0)20 7107 5306
    articles that originate from a seminar hosted by LSE          email: l.Kossarova@lse.ac.uk
    Health and the NHS Confederation and funded by the            EDITORIAL BOARD:
    Higher Education Innovation Fund in April 2010.               Reinhard Busse, Josep Figueras, Walter Holland,
                                                                  Julian Le Grand, Martin McKee, Elias Mossialos
    The situation is complex. Gwyn Bevan in looking at            SENIOR EDITORIAL ADVISER:
    different motivations to respond to performance               Paul Belcher: +44 (0)7970 098 940

E
    assessment measures finds that systems that potentially       email: pbelcher@euhealth.org

    have an impact on the reputation of service providers, for    DESIGN EDITOR:
                                                                  Sarah Moncrieff: +44 (0)20 7834 3444
    example by ranking them publicly, are more likely to          email: sarah@westminstereuropean.co.uk
    generate incentives for poorly performing providers to        SUBSCRIPTIONS MANAGER
    make improvements. A reliance on altruism or market           Champa Heidbrink: +44 (0)20 7955 6840
    mechanisms is less likely to be effective. Chris Ham          email: eurohealth@lse.ac.uk

N
    looking at experience in England argues that the
                                                                  Advisory Board
    introduction of targets and national standards has
                                                                  Tit Albreht; Anders Anell; Rita Baeten; Johan Calltorp; Antonio
    indeed contributed to performance improvement in              Correia de Campos; Mia Defever; Isabelle Durand-Zaleski;
    the English NHS.                                              Nick Fahy; Giovanni Fattore; Armin Fidler; Unto Häkkinen;
                                                                  Maria Höfmarcher; David Hunter; Egon Jonsson; Allan
                                                                  Krasnik; John Lavis; Kevin McCarthy; Nata Menabde;
    Both Mark Exworthy and Niek Klazinga focus on what            Bernard Merkel; Willy Palm; Govin Permanand; Josef Probst;

T
    is measured. Exworthy points out that with all the            Richard Saltman; Jonas Schreyögg; Igor Sheiman;
    competing pressures on providers, it is important for         Aris Sissouras; Hans Stein; Ken Thorpe; Miriam Wiley

    regulators, managers and other users of data to agree on      Article Submission Guidelines
    what will be measured and how data will be used. He           see: www2.lse.ac.uk/LSEHealthAndSocialCare/LSEHealth/
    further stresses the importance of knowing what does not      documents/Guidelinestowritinganarticleforeurohealth.aspx
    get measured and how this affects performance. Klazinga
                                                                  Published by LSE Health and the European Observatory on
    also argues that when utilised improperly data from
                                                                  Health Systems and Policies, with the financial support of
    performance management can result in sub-optimal              Merck & Co and the European Observatory on Health Systems
    service delivery.                                             and Policies.
                                                                  Eurohealth is a quarterly publication that provides a forum for
    Clearly no system of performance assessment will ever         researchers, experts and policymakers to express their views on
                                                                  health policy issues and so contribute to a constructive debate
    be perfect, but we need to learn more from systems that       on health policy in Europe.
    have been implemented. What may be lacking to date is         The views expressed in Eurohealth are those of the authors
    sufficient consistency in health policy over time to fully    alone and not necessarily those of LSE Health, Merck & Co.
                                                                  or the European Observatory on Health Systems and Policies.
    evaluate the impact of different approaches.
                                                                  The European Observatory on Health Systems and Policies is a
                                                                  partnership between the World Health Organization Regional
    David McDaid Editor                                           Office for Europe, the Governments of Belgium, Finland,
                                                                  Ireland, the Netherlands, Norway, Slovenia, Spain, Sweden and
    Sherry Merkur Editor                                          the Veneto Region of Italy, the European Commission, the
    Philipa Mladovsky Deputy Editor                               European Investment Bank, the World Bank, UNCAM (French
                                                                  National Union of Health Insurance Funds), the London
    Lucia Kossarova Assistant Editor                              School of Economics and Political Science, and the London
    Azusa Sato Assistant Editor                                   School of Hygiene & Tropical Medicine.

                                                                  © LSE Health 2010. No part of this publication may be copied,
                                                                  reproduced, stored in a retrieval system or transmitted in any form
                                                                  without prior permission from LSE Health.

                                                                  Design and Production: Westminster European
                                                                  Printing: Optichrome Ltd

                                                                  ISSN 1356-1030
Eurohealth - World Health ...
Contents                                                                                                Eurohealth
                                                                                               Volume 16 Number 3

Health policy                                                             Arpo Aromaa is Professor, Finnish National
                                                                          Institute for Health and Welfare (THL), Finland.
1    User fees in the Czech Republic:
     The continuing story of a divisive tool                              Gwyn Bevan is Professor of Management
     Ewout van Ginneken, Alena Ottichova and Matthew Gaskins              Science, Department of Management and LSE
                                                                          Health, London School of Economics and
4    Providing a solid evidence base for policy makers: ECHI initiative   Political Science, UK.
     Marieke Verschuuren, Pieter Kramers, Gudrun Kr Gudfinnsdottir
     and Arpo Aromaa                                                      Mark Exworthy is Reader in Public Manage-
                                                                          ment and Policy, School of Management,
8    Private sector providers in England:                                 Royal Holloway University of London, Egham,
     The implications of Independent Sector Treatment Centres             UK.
     Nidhi Vaid
                                                                          Gary L. Filerman is a member of the Faculty,
11 Five barriers to physician workforce development in Uzbekistan         Georgetown University, Washington DC, USA.
   Zukhra Karimova and Gary L. Filerman
                                                                          Matthew Gaskins is Research Fellow,
                                                                          Department of Health Care Management at
                                                                          the Berlin University of Technology, Germany.

Performance                                                               Gudrun Kr Gudfinnsdottir is Policy Officer,
                                                                          European Commission, DG SANCO, Health
15 Managing performance: An introduction                                  Information Unit.
   Rachel Irwin
                                                                          Chris Ham is Chief Executive of the King’s
16 The performance paradigm in the English NHS:                           Fund, London, UK.
   Potential, pitfalls, and prospects
                                                                          Rachel Irwin is Research Assistant, LSE Health,
   Mark Exworthy
                                                                          London School of Economics and
20 If neither altruism nor markets have improved NHS performance,         Political Science, UK.
   what might?
                                                                          Zukhra Karimova is Faculty member, Tashkent
   Gwyn Bevan
                                                                          Paediatric Medical Institute, Uzbekistan.
23 Improving performance in the English National Health Service           Niek Klazinga is Professor of Social Medicine,
   Chris Ham                                                              Academic Medical Centre, University of
                                                                          Amsterdam, the Netherlands and Coordinator
26 Health system performance management:
                                                                          of the Organisation for Economic
   Quality for better or for worse
                                                                          Co-operation and Development’s (OECD)
   Niek Klazinga
                                                                          Health Care Quality Indicator project.

                                                                          Pieter Kramers is Senior Advisor, Dutch
                                                                          National Institute for Public Health and the
                                                                          Environment (RIVM), the Netherlands.
Evidence-informed Decision Making
                                                                          Alena Ottichova is PhD candidate, Salzburg
29 “Mythbuster” If a drug makes it to market, it’s safe for everyone
                                                                          Centre of European Union Studies (SCEUS),
                                                                          Salzburg University, Austria.

                                                                          Nidhi Vaid is Specialist Registrar in Acute
                                                                          Medicine, Chelsea and Westminster Hospital,
    Monitor                                                               London, UK.

    31 Publications                                                       Ewout van Ginneken is Senior Researcher,
                                                                          Department of Health Care Management at
    32 Web Watch                                                          the Berlin University of Technology, Germany.

    33 News from around Europe                                            Marieke Verschuuren is Senior Researcher,
                                                                          Dutch National Institute for Public Health and
                                                                          the Environment (RIVM), the Netherlands.
HEALTH POLICY

                           User fees in the Czech Republic:
                           The continuing story of a divisive tool

                           Ewout van Ginneken, Alena Ottichova and Matthew Gaskins

                                             Summary: The introduction of user fees and the ongoing discussions on their
                                             continuation have caused a great deal of debate in the Czech Parliament, media
                                             and general public. Although evidence from the first year after their introduction
                                             suggests a decrease in resource utilisation, second-year data already show a slight
                                             increase for some important indicators. Measuring the effectiveness of user fees is
                                             notoriously difficult, but in the Czech Republic this challenge has been further
                                             compounded by efforts in some regions to tap into regional budgets to reimburse
                                             patients for user fees, undermining the mechanisms on which the system was based.

                                             Key words: health reform, cost sharing, user fees, Czech Republic

User fees have become a very sensitive           Slovakia (26.2%) for that year.1 In the        The population enjoys virtually universal
political issue in the Czech Republic,           present review, we describe the introduc-      coverage and a broad range of benefits.
sparking debate in Parliament, the media         tion of user fees, the political controversy   Some important health indicators are
and the general public. Their introduction       surrounding them, and their impact on          better than the EU15 and EU27 averages
and the ongoing discussions on their con-        health care utilisation in the Czech           (such as mortality due to respiratory
tinuation have played a key role during          Republic.                                      disease and infant mortality rates). On the
the last three regional and national                                                            other hand, the standardised death rates for
                                                 Background
elections and were widely seen as a major                                                       diseases of the circulatory system and
                                                 Since 1993, the Czech Republic has had a
contributor to the collapse of Prime                                                            malignant neoplasms are well above the
                                                 system of social health insurance (SHI)
Minister Mirek Topolánek’s centre-right                                                         EU27 average. A range of health care util-
                                                 based on compulsory membership in one
coalition in spring 2009.                                                                       isation rates, such as outpatient contacts
                                                 of a range of health insurance funds. Eli-
This seems quite remarkable given that                                                          and average length of stay in acute care
                                                 gible residents may freely choose among
private households’ out-of-pocket pay-                                                          hospitals, are also above this average.
                                                 these and among health care providers.
ment on health as a percentage of total                                                         Overall, there is substantial potential in the
                                                 SHI contributions are mandatory and cal-
health expenditure in the Czech Republic                                                        Czech Republic for efficiency gains and
                                                 culated as a percentage of wages.
has been relatively modest from an                                                              improved health outcomes.2 This was
                                                 Compared to Western Europe, the health
international perspective. In 2008, this                                                        recognised by the centre-right coalition led
                                                 system is characterised by relatively low
percentage stood at 13.7% (compared to                                                          by Prime Minister Mirek Topolánek’s
                                                 total health care expenditure as a share of
13.2% in 2007, the year before user fees                                                        Civic Democratic Party (ODS) from 2007
                                                 gross domestic product (GDP), low out-
were introduced), which is slightly lower                                                       to 2009, forming the rationale for the intro-
                                                 of-pocket payments and plentiful human
than the EU15 average of 14.5% and sub-                                                         duction of the user fees in 2008.
                                                 resources, albeit with some substantial
stantially lower than the percentages for        regional disparities.                          Prior to 2008, inpatient and outpatient
Hungary (25.2%), Poland (24.2%) and                                                             health services were free of charge at the
                                                                                                point of use, with the exception of some
                                                                                                co-payments for prescription pharmaceu-
Ewout van Ginneken is a Senior Researcher in the Department of Health Care
                                                                                                ticals and medical aids. From the
Management at the Berlin University of Technology, Germany.
                                                                                                perspective of the centre-right coalition,
Alena Ottichova is a PhD candidate in the Salzburg Centre of European Union Studies             this had in many cases led to high utili-
(SCEUS), Salzburg University, Austria. Alena.Ottichova2@sbg.ac.at                               sation rates and the inappropriate use of
                                                                                                scarce health resources. Indeed, the
Matthew Gaskins is a Research Fellow in the Department of Health Care                           number of outpatient contacts per person
Management at the Berlin University of Technology, Germany.                                     in the Czech Republic (15.0 per year) was

1     Eurohealth Vol 16 No 3
HEALTH POLICY

the highest in the WHO European Region          sensitive political nature of the subject and   implemented their own reimbursement
in 2006.1 Moreover, an estimated CZK4–          negative media coverage may have led to         systems, leading to a different system in
10 billion (€144–360 million) worth of          general uncertainty about the new system        almost every region. In several regions,
prescribed pharmaceuticals were being           among insured individuals. This was             patients were automatically reimbursed for
wasted or went unused each year.2 The           reflected in a public opinion poll in which     user fees, while in other regions patients
chief aim of user fees was to reduce over-      a third of respondents stated at the time       had to file a written request for reim-
consumption and inefficiencies in the           that they did not know the purpose of the       bursement.
health sector by encouraging people to use      user fees nor feel that they were necessary.5
                                                                                                Since January 2009, great uncertainty has
health services responsibly. The Public
                                                                                                prevailed. For example, some public hos-
Budgets Stabilisation Act, passed in            The unrest begins
                                                                                                pital pharmacies have tapped into regional
August 2007, introduced small user fees for     It thus came as no surprise that the results
                                                                                                budgets to reimburse patients for the user
a variety of health services and changed the    of the regional and Senate elections in
                                                                                                fees, whereas privately owned pharmacies
system for setting prices and reim-             October 2008 were a disaster for the gov-       have not. In some cases, actions likes these
bursement rates for pharmaceuticals.            erning centre-right coalition. Thirteen of      have been prohibited by the courts on the
                                                the fourteen regions were lost to the oppo-     grounds of unfair competition after com-
Introducing the user fees                       sition. The aftermath of the autumn             plaints made by the private pharmacies.6
A range of user fees were introduced on         elections was chaotic. In December 2008,        Furthermore, the Czech Ministry of
1 January 2008, amounting to flat rates of      members of the C     ̌ SSD voted in the         Health began an administrative proceeding
CZK30 (€1.20) per doctor visit, CZK60           Chamber of Deputies in favour of abol-          against four regions in January 2010, and
(€2.40) per hospital day, CZK90 (€3.60)         ishing user fees for health services            nine sickness funds protested openly
per use of ambulatory services outside of       altogether. This was rejected by the Senate     against regional hospitals and their phar-
standard office hours, and CZK30 (€1.20)        in January 2009, which instead preferred to     macies that had not been collecting user
for prescription pharmaceuticals.               reduce the burden on the young and the          fees.7
Some vulnerable groups were exempted            elderly.
                                                                                                As a countermeasure, the C   ̌ SSD launched
from the fees, including people living          The political landscape remained volatile.      a ‘struggle against fees’ campaign and filed
below the poverty line, neonates, chroni-       In March 2009, in the middle of the Czech       two complaints with the Constitutional
cally ill children, pregnant women, patients    Presidency of the European Union, the           Court in February 2010.8 The European
with infectious diseases, organ and tissue      centre-right coalition led by Mirek             Commission voiced the informal view that
donors, and individuals receiving pre-          Topolánek lost a vote of confidence. An         the current system, in which regional
ventive services. Moreover, an annual           independent, Jan Fischer, was selected to       authorities pay the fees, is discriminatory
ceiling of CZK5,000 (€200) per insured          become the Prime Minister of a caretaker        and, if formally investigated, might be
individual was established for selected user    government in April. His government,            deemed as conflicting with European state-
fees (excluding user fees for hospital stays    nominated by both major parties (the ODS        aid rules.9 Another problem is the costs:
and the use of ambulatory services outside              ̌ SSD), was inaugurated on 8 May
                                                and the C                                       reimbursing patients for the fees places a
of standard office hours), as well as for co-   2009, and new elections were scheduled for      great burden on regional budgets. After
payments on prescription pharmaceuticals        May 2010. Again, the C    ̌ SSD pledged to      one year, approximately two thirds of
with a price exceeding the reference price      repeal user fees if they regained power in      patients in regions governed by the C ̌ SSD
in a particular pharmaceutical group.           the Chamber of Deputies in the 2010             took advantage of user-fee reimbursement,
As early as March 2008, user fees began to      elections.                                      leading to a total cost of CZK478 million
play a major role in the campaigns for the      Under enormous political pressure, the          (€19 million).10
regional and Senate elections planned for       new caretaker government adjusted the
October that year. On 28 March 2008, the        user fee system in April 2009. Although         Have the user fees worked?
Chamber of Deputies for the first time          the annual ceiling had been reached by          Data from the Czech Institute of Health
rejected the Social Democrats’ (C    ̌ SSD)     only approximately 0.2% of insured indi-        Information and Statistics show that the
proposal to repeal user fees. The C   ̌ SSD     viduals in 2008,2 the ceiling was lowered.      number of visits to ambulatory specialists
then pledged to eliminate user fees in          As of 1 April 2009, a new annual ceiling of     fell by 17% in 2008.11 The decrease in the
regional hospitals and pharmacies if they       CZK2,500 (€100) was set for persons             use of ambulatory care services outside of
regained power. Furthermore, on 28 May                                                          standard office hours was even more pro-
                                                under 18 years or over 65 years of age;
2008 the Czech constitutional court                                                             nounced at 41%; importantly, this was not
                                                moreover, those under 18 years were also
             ̌ SSD’s claim that the user fees
rejected the C                                                                                  accompanied by an increase in the use of
                                                exempted from user fees for doctor visits.
were unconstitutional.3                                                                         emergency services.
                                                In June 2009, the Czech Senate rejected
A large portion of the population opposed       new efforts by the Chamber of Deputies to       Looking at hospitalisations in 2008, the
the user charges, and the C  ̌ SSD could be     abolish user fees.                              number of hospital days decreased by
assured of their backing. Indeed, many                                                          4.4% in acute care hospitals and by 3.2%
people in the Czech Republic were not           The regions revolt                              in non-acute care hospitals11 even though
bothered by the amount they had to pay          In the meantime, the regions, which by          the number of hospitalised patients
(that is, €1.20–3.60), but by the principle     February 2009 were all governed by the          increased by 3% and 5%, respectively,
of having to pay user fees, which went          ̌ SSD with the exception of Prague, had
                                                C                                               during the same period.2 This suggests a
against the idea of free health care delivery   decided on the 1st of that month to pay the     reduction in the average length of stay,
– one of the main tenets of the Czech           fees from their own budgets on behalf of        which is confirmed by Health for All
health care system.4 Furthermore, the           patients. To achieve this end, the regions      (HFA) data, which show a reduction of 0.6

                                                                                                              Eurohealth Vol 16 No 3      2
HEALTH POLICY

days (to an average of 7.4 days) between         established Public Affairs party (VV) with
2006 and 2008 for all hospitals observed.1       10.9% of the vote. The success of TOP 09        REFERENCES
It should be noted, however, that a              and VV was unparalleled in the political        1. WHO Regional Office for Europe.
decrease in the average length of stay was       history of the Czech Republic. The elec-        European Health for All Database.
already visible in 2007, the year prior to the   tions were a political earthquake in which      Copenhagen: WHO Regional Office for
introduction of user fees.                       the established parties suffered heavy          Europe, 2010. Available at:
                                                 losses. As a result, another centre-right       http://www.euro.who.int/hfadb
Finally, the number of prescribed pharma-
                                                 coalition was formed, this time with the        2. Bryndová L, Pavloková K, Roubal T,
ceuticals and the number of unit packs of
                                                 ODS, TOP 09 and VV.                             Rokosová M, Gaskins M, van Ginneken E.
prescribed pharmaceuticals fell by 26.7%
                                                                                                 Czech Republic: Health system review.
and 7.4%, respectively. At the same time,        Opinions about user fees remain divided.
                                                                                                 Health Systems in Transition
SHI expenditure on prescribed pharma-            It seems unlikely that the new centre-right     2009;11(1):1–122.
ceuticals rose by 8.3%, indicating a shift in    coalition will abolish or significantly
SHI reimbursement from less expensive,           reform the user fee system. On the con-         3. C̆abanová A, Šenký M. Soud: U lékar̆e
everyday pharmaceuticals to more costly          trary, the new coalition inherited a health     se bude platit dál [Court judgment: Keep
                                                                                                 on paying at the doctors]. Lidové noviny
pharmaceutical treatments and bigger unit        system affected by the financial crisis and
                                                                                                 29 May 2008. Available at: http://www.
packs.11                                         with a large deficit (CZK 10 billion in 2009,
                                                                                                 lidovky.cz/ soud-u-lekare-se-bude-platit-
                                                 €400 million) and is currently looking at
For 2009, utilisation data for health                                                            dal-dmy/ln_noviny.asp?c=A080529_
                                                 ways to increase out-of-pocket payments         000003_ln_noviny_sko
services show a moderate reversal of the
                                                 and the responsibility of patients to share
trend seen in 2008. For example, the
                                                 in costs.17 The opposition C     ̌ SSD and      4. Antonova P, Jacobs DI, Bojar M et al.
number of prescribed pharmaceuticals                                                             Czech health two decades on from the
                                                 Communist Party continue to call for the
increased by 6%.12 Although the number                                                           Velvet Revolution. The Lancet
                                                 repeal of the user fees. Since June 2010,
of unit packs of prescribed pharmaceuticals                                                      2010;375:179–81.
                                                 health facilities in some regions have abol-
fell by 1.8%, expenditure on prescribed                                                          5. STEM/MARK agency public opinion
                                                 ished the reimbursement of user fees to
pharmaceuticals rose by 9.6%.13 The                                                              research, 5–9 August. In: C̄tvrtina lidí neví,
                                                 retain more resources and to lessen their
average number of hospital bed days                                                              k c̆emu slouží zdravotnické poplatky [A
                                                 administrative burden.18
increased slightly, by 1.3 days to 255.5                                                         third of people do not know the purpose of
days, while the average length of stay                                                           user fees]. Ceske noviny 12 August 2010.
                                                 Conclusion
remained at 7.4 days.14 Also, the number                                                         Available at: http://www.ceskenoviny.cz/
                                                 User fees remain a divisive issue in Czech
of visits to ambulatory specialists and the                                                      zpravy/ctvrtina-lidi-nevi-k-cemu-slouzi-
                                                 politics. Although out-of-pocket spending
use of ambulatory care services outside of                                                       zdravotnicke-poplatky/514955?rss
                                                 is still low from an international per-
standard office hours in 2009 increased by                                                           °
                                                                                                 6. Purová Z. Vrchní soud podpor̆il zákaz
                                                 spective, the concept of having to pay for
9.2% and 10.1%, respectively.13                                                                  Rathových klic̆ek s poplatky [High Court
                                                 something that had been historically pro-
The 2009 statistics may reflect the effect of    vided for free has led to a great deal of       supports ban on Rath’s fee loopholes].
the reimbursement of user fees by the                                                            Mladá Fronta Dnes 17 September 2009.
                                                 public debate and played a large role in
                                                                                                 Available at: http://zpravy.idnes.cz/
regions, which likely undermines the effec-      several elections since 2008. The intro-
                                                                                                 vrchni-soud-podporil-zakaz-rathovych-
tiveness of the system. It should also be        duction of user fees is widely thought to
                                                                                                 klicek-s-poplatky-pj2-/domaci.asp?c=
noted, however, that measuring both the          have contributed to a change in political
                                                                                                 A090917_ 143415_domaci_taj
short- and long-term effects of user fees is     leadership, which if true shows the ability
notoriously difficult. Even decreasing util-     of this relatively small measure to pack a      7. Pojišt’ovny zac̆nou rozdávat pokuty za
isation rates may give an incomplete             big punch. Other countries contemplating        neplacení poplatku° [Sickness funds will
picture of the cost-saving potential of user                                                     impose fines for non-payment of fees].
                                                 the introduction or expansion of user
                                                                                                 Mladá Fronta Dnes 9 February 2009. Avail-
fees, with costs arising elsewhere in the        fees might want to consider the Czech
                                                                                                 able at: http://zpravy.idnes.cz/pojistovny-
system. For example, patients may forgo          experience.
                                                                                                 zacnou-rozdavat-pokuty-za-neplaceni-
necessary treatment or fail to adhere to
                                                 Good evidence is essential when deliber-        poplatku-p32-/domaci.asp?c=A090209_
treatment, which could lead to the need for                                                      174636_domaci_ban
                                                 ating whether to introduce user fees.
costlier treatments at a later time. Interna-
                                                 Although evidence from the first year after     8. Kopecký J. Pr̆ed volbami sílí boj o
tional evidence on the effectiveness of user
                                                 the fees were introduced suggests a             poplatky, k soudu mír̆í hned dvĕ ústavní
fees, especially over the long term, is
                                                 decrease in resource utilisation, the second    stížnosti [Fight against fees grows before
inconclusive.15,16 More data will be needed
                                                 year data already show a slight increase for    elections, two constitutional complaint
in the coming years to make useful inter-
                                                 some important indicators. When inter-          before court]. Mladá Fronta Dnes 5 Febru-
pretations about the effectiveness of the
                                                 preting these data, however, it is important    ary 2010. Available at: http://zpravy.idnes.
measures taken in the Czech Republic.                                                            cz/pred-volbami-sili-boj-o-poplatky-k-
                                                 to keep in mind that the mechanisms on
                                                 which the system was based were under-          soudu-miri-hned-dve-ustavni-stiznosti-
Latest developments: the unrest continues                                                        14c-/domaci. asp?c=A100205_140636_
                                                 mined by the regions that chose to
                              ̌ SSD won
Against all expectations, the C                                                                  domaci_kop
                                                 reimburse patients for the user fees from
the May 2010 elections of the Chamber
                                                 the regional budgets. Several more years of     9. EC denounces payment of health fees by
of Deputies with only 22% of the vote,
                                                 data are needed before any definitive           Czech regions. Prague Daily Monitor
followed closely by the ODS with 20%,
                                                 conclusions can be drawn on the impact of       2 June 2010. Available at: http://prague
the newly founded TOP 09 party with an                                                           monitor.com/2010/06/02/ec-denounces-
                                                 user fees in the Czech Republic.
unexpected share of 16.7%, the Commu-                                                            payment-health-fees-czech-regions
nists (KSČ M) with 11.3% and the newly

3     Eurohealth Vol 16 No 3
HEALTH POLICY

10. Syslová J, Tvarohová J. Proplácení
poplatku° už stálo kraje pul
                          ° miliardy. Jako
nĕkolik kalamit [Reimbursement of fees
                                              Providing a solid evidence
have already cost regions half a billion
Czech Crowns]. Mladá Fronta Dnes 21
January 2010. Available at: http://zpravy.
                                              base for policy makers:
idnes.cz/proplaceni-poplatku-uz-stalo-
kraje-pul-miliardy-jako-nekolik-kalamit-
12e-/domaci.asp?c=A100121_101015_
                                              ECHI initiative
domaci_ban
11. ÚZIS. Institute of Health Information
and Statistics of the Czech Republic.
Consumption of Health Services in the
Years 2005–2008. Prague: ÚZIS, 2009;63.       Marieke Verschuuren, Pieter Kramers and
Available at: http://www.uzis.cz
                                              Gudrun Kr Gudfinnsdottir and Arpo Aromaa
12. ÚZIS. Institute of Health Information
and Statistics of the Czech Republic. Phar-
maceutical Services in 2009. Prague: ÚZIS,
2010;21. Available at: http://www.uzis.cz
                                              Summary: With the aim of providing a solid evidence base for policy making, the
13. ÚZIS. Institute of Health Information     European Commission initiated a European public health monitoring policy a
and Statistics of the Czech Republic.
                                              decade ago. The European Community Health Indicators (ECHI) projects have
Consumption of Health Services in the
Years 2006–2009. Prague: ÚZIS, 2010;46.
                                              played a central role in the development of this policy. ECHI currently is in its
Available at: http://www.uzis.cz              fourth phase (Joint Action for ECHIM). Twenty-four EU Member States are
                                              engaged in an effort to implement the ECHI shortlist (88 indicators). One of
14. ÚZIS. Institute of Health Information
and Statistics of the Czech Republic.         the major challenges will be to find sustainable solutions for public health
Hospitals in the Czech Republic in 2009.      monitoring, both at Member State and at European level.
Prague: ÚZIS 2010;5:4.
Available at: http://www.uzis.cz              Key words: evidence-based policy making, public health monitoring, indicators,
15. Lagarde M, Palmer N. The impact of        European Union.
user fees on health service utilization in
low- and middle-income countries: how
strong is the evidence? Bulletin of the       The need for international public health      information presented in the report raises
World Health Organization                                                                   questions; why do so many Dutch people
                                              comparisons
2008;86:839–48.                                                                             smoke? Are the anti-smoke policies in
                                              The gap between the Netherlands and the
16. Thomson S, Foubister T, Mossialos E.      European Union (EU) average is widening       countries with a lower smoking rate dif-
Can user charges make health care more        for rates of female cancer mortality. The     ferent than the policies applied in the
efficient? British Medical Journal            Netherlands has higher than average rates     Netherlands? Are there other factors, such
2010;341:c5225.                               of smoking while relatively few mothers       as cultural differences, which may explain
17. Petrášová L, Syslová L. Ve zdravot-       breastfeed their babies. The 30-day in-hos-   the different smoking rates in the EU
nictví chybí už deset miliard, strany ale o   pital fatality rate for stroke in the         countries? The same kind of questions may
reformĕ nemluví [Ten billion missing in      Netherlands is high compared to other         be asked of the indicators for which the
health care system, but parties don’t talk    European countries. On the other hand,        Netherlands is doing relatively well.
about reform]. Mladá Fronta Dnes 11 May       injury-related mortality is very low in the
2010. Available at: http://zpravy.idnes.cz/                                                 These examples illustrate the usefulness
                                              Netherlands, and it is among the best
ve-zdravotnictvi-chybi-uz-deset-miliard-                                                    and necessity of international public health
                                              scoring countries when looking at health
strany-ale-o-reforme-nemluvi-1ju-/                                                          monitoring by means of indicators for
                                              determinants such as levels of physical
domaci.asp?c=A100510_205611_domaci_                                                         policy making. Through international
                                              activity and overweight.
vel                                                                                         benchmarks, authorities may be made
                                              These are some of the main conclusions of     aware of good practice examples in other
18. Králová S, R̆íhová B. Pardubický kraj
                                              the report Dare to Compare! Bench-            countries. Moreover, this international ori-
ruší jako první proplácení poplatku° v
nemocnicích [Pardubice region is the first    marking Dutch health with the European        entation may draw attention to some of the
to abolish the reimbursement of fees in       Community Health Indicators (ECHI),           causes of avoidable health inequalities
hospitals]. Mladá Fronta Dnes 1 June 2010.    written by the Dutch Public Health            between European citizens, achievable
Available at: http://zpravy.idnes.cz/         Institute (RIVM) in 2008.1 The indicator      health gains and the efficient use of
pardubicky-kraj-rusi-jako-prvni-
proplaceni-poplatku-v-nemocnicich-10h-
/domaci.asp?c= A100601 _155131_
domaci_bar                                    Marieke Verschuuren is Senior Researcher and Pieter Kramers Senior Advisor, Dutch
                                              National Institute for Public Health and the Environment (RIVM). Gudrun Kr
                                              Gudfinnsdottir is Policy Officer, European Commission, DG SANCO, Health
                                              Information Unit and Arpo Aromaa, Professor, Finnish National Institute for Health
                                              and Welfare (THL). Email: marieke.verschuuren@rivm.nl

                                                                                                          Eurohealth Vol 16 No 3      4
HEALTH POLICY

resources. That such an approach is suc-
cessful is shown by figures from Finland          Box: Joint Action for ECHIM: participating countries, Core Group members and project partners
that reflect a remarkable decline in the rates
of many cancers, as well as a large               Member States
reduction in traffic accidents and cardio-
vascular deaths, which were among the             1         Belgium              (Core group member)
highest in Europe in the 1970s.                   2         Bulgaria
                                                  3         Czech Republic       (Core group member)
The ECHI initiative
                                                  4         Cyprus
Aiming to meet policy makers’ need for
comparable international public health            5         Denmark
information, more than a decade ago the           6         Estonia              (Core group member)
European Commission initiated a                   7         Finland              (Core group member and project partner)
European public health monitoring policy,         8         France
starting with the EU Health Monitoring            9         Germany              (Core group member and project partner)
Programme, which ran from 1997 until
                                                  10        Greece               (Core group member)
2002. Within this Programme, many
projects were involved in indicator devel-        11        Hungary
opment. The ECHI-I project acquired a             12        Ireland              (Core group member)
key role, collecting proposals for indicator      13        Italy                (Core group member and project partner)
definitions from all of these projects. These     14        Latvia
proposals were arranged systematically in         15        Lithuania            (Core group member and project partner)
the so-called ECHI long list, comprising at
                                                  16        Luxembourg
that time more than 200 indicators.2
                                                  17        Malta
It was clearly not feasible to implement all      18        Netherlands          (Core group member and project partner)
indicators on the ECHI long list at once.
                                                  19        Poland
Therefore, DG SANCO and the ECHI
experts decided to create a shortlist for pri-    20        Portugal
ority implementation. Further refinement          21        Slovenia             (Core group member)
of the indicator selection was coordinated        22        Spain                (Core group member)
by the ECHI-II project, and carried out in        23        Sweden               (Core group member)
close cooperation with DG SANCO and               24        United Kingdom       (Core group member)
its working parties and committees under
the Health Information Strand. The next
                                                  Other countries
phase, under the Public Health Programme
2003–2008, was coordinated by the                 25        Iceland
ECHIM project (M stands for Moni-                 26        Norway
toring). ECHIM identified national health         27        Moldova
information experts, and started mapping
the availability of data in the EU Member         Other Core Group Members
States for calculating the shortlist indi-
                                                            DG SANCO
cators. Indicator metadata (definitions,
calculation methods, preferred data                         DG EUROSTAT
sources etc) was documented in a struc-                     WHO-Europe
tured way in ECHI Documentation
Sheets.3
In 2007 the EU Health Strategy White             duration.5 (See Box for an overview of the        – The indicators should serve user needs,
Paper Together for Health was adopted,           Joint Action for ECHIM partners and par-            meaning that they should support
stating as one of its actions the implemen-      ticipating countries).                              potential policy action, both at EU and
tation of a European ECHI system.4 In                                                                Member State level.
2008 the European Commission therefore           The ECHI shortlist
                                                                                                   – Existing indicator systems, such as the
called for a Joint Action for ECHIM. This        The following set of criteria was applied
                                                                                                     WHO-Health for All (WHO-HFA)
new financing mechanism implies a direct         for selecting indicators in the ECHI long
                                                                                                     and Organisation for Economic Co-
invitation from the Commission to the            and subsequent shortlists:
                                                                                                     operation and Development (OECD)
Member States to present a proposal.             – The list should cover the entire public           indicators, should be made use of as
Public health institutes from five countries       health field, following the commonly              much as possible, but there is also room
took the lead in preparing the proposal,           applied structure of the well known               for innovation.
and twenty-four Member States in total             Lalonde model; health status, determi-
gave a declaration of intent to participate                                                        – Adopt viewpoint of the general public
                                                   nants of health, health interventions/
in the Joint Action for ECHIM. It started                                                            health official (‘cockpit’) as a frame of
                                                   health services, and socioeconomic and
on 1 January 2009 and has a three year                                                               reference.
                                                   demographic factors.6

5     Eurohealth Vol 16 No 3
HEALTH POLICY

– Focus on large public health problems,      policy makers. This distinguishes the            Communities, Eurostat is the main data
  including health inequalities.              ECHI shortlist from many other existing          provider for ECHI.7 From the onset of the
                                              data collection initiatives, which may either    ECHI initiative, Eurostat has been
– Focus on the greatest potential for
                                              apply a broader or more limited orien-           involved in the developmental work. The
  effective policy action.
                                              tation.                                          main result of this ECHI-Eurostat coop-
Applying these criteria resulted in a                                                          eration is the embedding of the ECHI
                                              The ECHI shortlist represents a carefully
selection of about 80 indicators. This so-                                                     shortlist in the new Regulation on Com-
                                              considered selection of available public
called ECHI shortlist was approved in                                                          munity statistics on public health and
                                              health data, which was supplemented by a
2005 by the European Commission and                                                            health and safety at work, which states that
                                              number of indicators covering important
the Network of Competent Authorities of                                                        its aim is to obtain “…data for structural
                                              public health issues currently not (ade-
the Health Information Strand under the                                                        indicators, sustainable development indi-
                                              quately) described by existing data
then Public Health Programme. Under the                                                        cators and European Community Health
                                              collections. This explicit attention on
ECHIM project an update of the shortlist                                                       Indicators (ECHI), as well as for the other
                                              health information gaps also distinguishes
was carried out. The most important                                                            sets of indicators which it is necessary to
                                              ECHI from other health data initiatives.
change was the addition of seven new indi-                                                     develop for the purpose of monitoring
cators which represented emerging policy      The ECHI shortlist was developed                 Community actions in the fields of public
information needs, such as heat wave          through intense cooperation with a large         health and health and safety at work”.9
related mortality and selected communi-       number of European health information
                                                                                               The above-mentioned Regulation provides
cable diseases. The current version of the    projects and Member State experts, which
                                                                                               a general framework for the development
shortlist contains 88 indicators.7            has resulted in the incorporation of inno-
                                                                                               of several detailed implementing acts. One
                                              vative results. This holds especially true in
The shortlist is divided into an implemen-                                                     of the first implementing acts to be realised
                                              those areas for which currently no compa-
tation section and a development section.                                                      will be on the European Health Interview
                                              rable data are readily and regularly
The first section holds the indicators for                                                     Survey (EHIS), which contains many
                                              available. Examples are the attack rates of
which detailed definitions and calculation                                                     topics from the ECHI shortlist. Currently,
                                              acute myocardial infarction and stroke,
methods have been developed, and for                                                           comparable Health Interview Survey
                                              perinatal health and health promotion.
which data are either available in existing                                                    (HIS) data at European level are scarce due
international databases or in a reasonable    ECHI also focuses on obtaining data from         to variations in methodology. Some
number of EU Members States at national       the Member States for the shortlist indi-        European surveys, such as the Labour
level. The development section holds the      cators for relevant subgroups, most              Force Survey (LFS) and the Survey on
indicators covering those areas of public     importantly subgroups defined by socio-          Income and Living Conditions (SILC) do
health for which there is a need for data,    economic      status.      It   is    widely     contain several questions on health or on
but for which no common indicator             acknowledged that there is an urgent need        health related topics. A harmonised
methodologies and data collections exist in   for public health data stratified by socio-      European Health Interview Survey
most EU Member States. The ECHIM              economic status. Yet, adequate data to a         therefore will be an important step forward
experts and the European Commission are       large extent are still lacking. Several initia   for ECHI and thus for European public
dedicated to facilitating further work on     tives have started in recent years to            health monitoring.
the development section being placed on       overcome this lack of information, one of
                                                                                               Another important development initiated
the political agenda.                         the most important being the social pro-
                                                                                               by the Commission is the European
                                              tection and social inclusion indicators
                                                                                               Health Examination Survey (EHES),
Added value and specific features ECHI        which are being developed through the
                                                                                               starting with the FEHES project in 2003,
compared with existing indicator systems      Open Method of Coordination (OMC).8
                                                                                               which examined the feasibility of carrying
What is the added value of the ECHI ini-      ECHI will build on the work already
                                                                                               out an EHES in the EU Member States.10
tiative? After all, there are several         carried out in this field, in particular the
                                                                                               In 2009 the Commission called for a Joint
international indicator databases con-        OMC work.
                                                                                               Action for the implementation of a pilot
taining public health data, such as
                                              A final characteristic of the ECHI initiative    European Health Examination Survey, and
WHO-HFA, OECD and Eurostat. Fur-
                                              is the strong focus on communication             14 countries responded to this call. In
thermore, there are several European
                                              aimed at the dissemination of health infor-      future, when EHES will be fully imple-
Agencies collecting data for their specific
                                              mation to policy makers - as a first target      mented, this survey will be an important
areas of practice, for example, the
                                              audience - and other user groups. One            data source for ECHI.
European Monitoring Centre for Drugs
                                              aspect of this communication within the
and Drugs Addiction (EMCDDA), the
                                              current Joint Action will be the dissemi-        Towards implementation of the ECHI
European Centre for Disease Prevention
                                              nation of meta-data, explaining in a             shortlist
and Control (ECDC) and the European
                                              structured and clarifying way to what            During the ECHI-I and ECHI-II projects,
Environmental Agency (EEA).
                                              extent the data are valid and comparable.        the focus was on the development and
The ECHI shortlist is a practical public      For indicator information to be used as an       selection of indicators. The ECHIM
health policy tool for general use. A theo-   evidence base for decision making, this          project prepared for the process of imple-
retical framework was applied for the         kind of information is essential.                mentation of the ECHI shortlist, by
selection of indicators, leading to the                                                        assessing the availability of data for the
ECHI shortlist representing in a very         Synergy with Eurostat and other                  ECHI shortlist indicators in the Member
focused yet comprehensive way the public      Commission activities                            States and by establishing a network of
health topics which are most relevant for     As the Statistical Office of the European        national health information experts.3 With

                                                                                                              Eurohealth Vol 16 No 3      6
HEALTH POLICY

the Joint Action for ECHIM the work            tation pilot, which was developed by the       term commitment to valid and comparable
now moves into a new phase; the phase of       ECHIM experts.7 The results of this pilot      health monitoring is a challenge for
actual implementation at Member State          serve as an example for other                  Member States, particularly in these days
level.                                         (inter)national ECHI data presentation ini-    of financial restrictions.
                                               tiatives.
Implementation of the ECHI shortlist
indicators entails putting the indicators
                                               Challenges ahead                               REFERENCES
into practical use in the Member States by:
                                               Successful implementation of the ECHI          1. Harbers MM, Wilk EA van der, Kramers
– introducing the indicators to national       indicators requires close cooperation          PGN et al. Dare to Compare! Bench-
  (and possibly regional/local) adminis-       between the European Commission, the           marking Dutch health with the European
  trators and decision makers                  ECHIM experts and Member States. It is         Community Health Indicators (ECHI).
                                               also clear that future development of the      Bilthoven: RIVM, 2008. Available at:
– modifying existing data sources,
                                               ECHI system is dependent on policy             http://www.rivm.nl/bibliotheek/
  applying new calculation methods and
                                               support and sustainable financing.             rapporten/270051011.html
  creating new data sources in order to
  improve national data availability and       Regarding the cooperation between the          2. ECHI-I final report: design for a set of
  quality                                      different stakeholders, the Directorate        European Community Health Indicators.
                                               General Health and Consumers (DG               2001. Available at: http://ec.europa.eu/
– setting up a sustainable data flow from                                                     health/ph_projects/1998/monitoring/fp_
                                               SANCO) of the European Commission
  Member States to a central ECHI                                                             monitoring_1998_frep_08_en.pdf
                                               organised an ‘extended ECHIM core
  database
                                               group’ meeting in February 2010, in which      3. Kilpeläinen K, Aromaa A and the
– setting up a presentation system, inte-      representatives from all Member States         ECHIM Core Group (Eds). European
  grating the ECHI shortlist with existing     have had the opportunity to participate.       Health Indicators: Development and Initial
  national health reporting systems (if        This has been an essential step forward for    Implementation. Final Report of the
  existing)                                    the implementation process. Furthermore,       ECHIM Project. Helsinki: KTL, 2008.
                                                                                              Available at www.healthindicators.eu
                                               DG SANCO’s Expert Group on Health
– analysing and interpreting the results
                                               Information (former Health Information         4. Commission of the European Commu-
  for health policy and planning
                                               Committee, HIC) can play a key role as         nities. Together for Health: A Strategic
General guidelines for implementation          the principle advisory committee for the       Approach for the EU 2008–13. Brussels:
have been developed by the ECHIM               European Commission on health infor-           Commission of the European Commu-
experts to support the national contacts in    mation.                                        nities, 2007. vailable at:
formulating feasible short- and long-term                                                     http://ec.europa.eu/health-eu/doc/
                                               DG SANCO mainly funds activities               whitepaper_en.pdf
national implementation plans. A central
                                               through projects or tenders. A Joint Action
element in the national implementation                                                        5. ECHIM project website:
                                               is slightly different as a financing mech-     www.echim.org
plans is the formation of national imple-
                                               anism as it involves a more explicit
mentation teams, which should consist of                                                      6. Kramers PGN. ECHI-II final report:
                                               commitment from Member State author-
representatives of the major stakeholders                                                     Public Health Indicators for Europe:
                                               ities. However, it too is a temporary
in health information. At the time of                                                         Context, Selection, Definition. Bilthoven:
                                               construction. Health information systems
writing of this paper (September 2010),                                                       RIVM, 2005. Available at:
                                               are not static; they need to be constantly
most of the countries represented in the                                                      http://www.rivm.nl/bibliotheek/
                                               developed in order to reflect current policy
ECHIM Core Group, as well as some                                                             rapporten/271558006.html
                                               needs and advancing scientific insights. It
non-Core Group countries, have started                                                        7. ECHIM products website:
                                               is therefore important that consideration
forming their national implementation                                                         www.healthindicators.eu
                                               already be given to possible venues for the
teams and drafting their national imple-
                                               continuation of work on the ECHI indi-         8. Social protection and inclusion indi-
mentation plans. The remaining countries
                                               cators to ensure sustainability of             cators. See: http://ec.europa.eu/
participating in the Joint Action for
                                               developmental work as well as in imple-        employment_social/spsi/joint_reports_en.
ECHIM will do so in the coming months.
                                               mentation.                                     htm
Within the Joint Action a system to facil-                                                    9. Regulation (EC) No 1338/2008 of the
                                               National health information systems form
itate data flow from the Member States to                                                     European Parliament and of the Council
                                               the basis of the European ECHI moni-
a central ECHI database will be tested.                                                       of 16 December 2008 on Community
                                               toring system. The involvement of
This central database will be hosted by the                                                   statistics on public health and health and
                                               Member States therefore is a prerequisite
European Commission and is linked to a                                                        safety at work. Available at: http://eur-lex.
                                               to success. As illustrated at the beginning    europa.eu/LexUriServ/LexUriServ.do?uri=
European level web-based data presen-
                                               of this paper, national health information
tation system.11 The ECHIM Core Group                                                         OJ:L:2008:354:0070:0081:EN:PDF
                                               systems producing relevant and compa-
members, who are experts in the field of                                                      10. Feasibility of a European Health
                                               rable indicators are of direct use to
public health statistics and monitoring, are                                                  Examination Survey (FEHES) project.
                                               Member States. The financial burden of the
working together with the Commission                                                          See: http://www.ktl.fi/fehes/
                                               ECHI monitoring system should therefore
to ensure that the data presentations will
                                               not be carried by the European Com-            11. European Health Indicators data pres-
meet basic quality standards for presenting                                                   entation tool at website DG SANCO:
                                               mission alone. National authorities need to
international public health comparisons                                                       http://ec.europa.eu/health/indicators/
                                               recognise the importance of basic health
to a policy maker audience. These basic                                                       indicators/index_en.htm
                                               data collection for a well functioning
requirements are reflected in a data presen-
                                               health system. Working towards a long-

7     Eurohealth Vol 16 No 3
HEALTH POLICY

                            Private sector providers in England:
                            The implications of Independent Sector Treatment
                            Centres

                            Nidhi Vaid

                                              Summary: Over the last few years, private sector providers have begun to have an
                                              increasing role in the NHS. This article outlines the advantages and disadvantages of
                                              private sector involvement following the introduction of one such initiative, the inde-
                                              pendent sector treatment centre. It further discusses how we should learn from the
                                              mistakes made and apply what we have learnt to the proposed government reforms
                                              that have been outlined in the recent White Paper “Equity and Excellence: Liberat-
                                              ing the NHS”. There are certainly potential benefits to be gained from private sector
                                              involvement; however, we must take care not to develop a segregated, two-tier NHS
                                              that disregards the principles on which it was originally founded.

                                              Key words: NHS, private, commissioning, reforms, ISTCs

The National Health Service (NHS) is the          Scotland, with the first ISTC opening in         Association (BMA) and the Royal College
publicly-funded health care system in the         2003. This was followed by further pro-          of Physicians, with suggestions that the
United Kingdom. In 2002, there were               curement with the first of the second wave       procedures ensuring adequate competence
already sixteen NHS-run treatment                 opened in 2007. The locations for the new        were not rigorous enough.1,3 It has also
centres. They vary in the scope of care pro-      ISTCs were identified by local service           been suggested that this policy hindered
vided but centre mainly on the provision          commissioners. The criteria for an ISTC          integration between ISTCs and NHS
of elective surgery, together with diag-          was either a lack of capacity or long            trusts; in fact staff mobility was key to
nostic and outpatient services. As part of        waiting times. In the first wave 25 fixed site   cooperation between the two providers.
reforms in the first years of the previous        and two mobile site ISTCs were opened.           The rules were subsequently relaxed
Labour government, bids for such services         The second wave was originally intended          during the second wave and NHS staff can
were invited from the private sector. These       to develop 24 schemes but this was subse-        now, albeit with some restrictions, work in
new Independent Sector Treatment                  quently reduced to just ten with the DH          ISTCs.
Centres (ISTCs), while privately owned,           stating that the extra capacity was no
have contracts to treat NHS patients.             longer required.1,2 This article aims to         Although all doctors employed by an
                                                  discuss the implication of contracting out       ISTC are required to be registered with the
The ISTCs were designed with several                                                               General Medical Council, there is no
                                                  clinical services to the private sector, using
objectives in mind. Their main focus was                                                           equivalent to the NHS Advisory Appoint-
                                                  the introduction of ISTCs in the English
to reduce waiting lists, thus moving                                                               ments Committees to act as a quality
                                                  health care system as an example.
towards the ‘patient centred’ model pro-                                                           control mechanism. Consequently, ISTCs
posed in the 2000 NHS Plan. Additional            What are the implications for health care        take on responsibility not only for
proposed benefits included encouragement          professionals?
                                                                                                   recruitment, but also professional devel-
of reform within the NHS by providing             During the first wave, ISTCs were unable
                                                                                                   opment and appraisal, an area where the
competition, facilitating innovation and          to employ staff who had worked in the
                                                                                                   Healthcare Commission in 2007 identified
reducing spot purchasing prices*, thus            NHS in the preceding six months. This
                                                                                                   some shortfalls.4
improving value for money.                        resulted in ISTCs being staffed largely by
                                                  overseas doctors. This led to questions          With regards to training, concerns have
There have been two phases or ‘waves’ of
                                                  regarding not only the quality of their          been voiced by senior surgeons that the
ISTCs procured by the Department of
                                                  training, but also their suitability to be       transfer of ‘straightforward’ elective pro-
Health (DH) throughout England and
                                                  working with potentially unfamiliar NHS          cedures, suitable for training junior
                                                  techniques and processes. The policy was         doctors, from NHS hospitals to ISTCs has
Nidhi Vaid is Specialist Registrar in Acute       heavily criticised by the British Medical        impacted negatively on training.5 The
Medicine, Chelsea and Westminster
Hospital, London, UK.                             * Treatment in the private sector which is purchased by the NHS on an ad hoc basis in order
Email: nvaid07@gmail.com                          to cut waiting lists.

                                                                                                                 Eurohealth Vol 16 No 3     8
HEALTH POLICY

apparent efficiency of ISTCs may also in       Commission warned that it is difficult to      to choose less complex cases, leaving the
part be accounted for by a lack of respon-     form such conclusions since the data is not    NHS with complex cases together with
sibility for training which, although time     directly comparable.1                          longer, more expensive inpatient stays.
consuming, is extremely important. A                                                          There have been calls by the BMA for the
                                               ISTCs were intended to reduce waiting
solution is to place junior doctors in ISTCs                                                  payment structure of selective ISTCs to be
                                               times by both adding capacity and intro-
where they can be trained in a ‘high                                                          altered to reflect this.
                                               ducing       competition,      consequently
volume, low risk’ arena; subsequently
                                               stimulating productivity within NHS facil-
ISTCs in the second wave were obliged to                                                      Is the data comparable?
                                               ities. Although in certain specialties ISTCs
include a training component if requested                                                     ISTCs are required to provide data
                                               account for a substantial proportion of
by postgraduate deans.                                                                        regarding quality outcome and monitoring
                                               activity, nationally, ISTCs account for only
                                                                                              to the DH in the form of performance
Innovative workforce management, such          2% of NHS elective activity, indicating that
                                                                                              indicators; however, the DH retains the
as in the case of Blakelands NHS treatment     they have not been a significant contrib-
                                                                                              publication rights of these data. Some
centre, includes regular staff consultations   utory factor to the reduction in waiting
                                               times.9 Additionally, an analysis by the       authors have concluded that the data pro-
and multi-tasking, and has led to a four day
                                               King’s Fund found no difference in the rate    vided by the ISTCs are of poor quality, and
working week by maximally utilising the-
                                               at which waiting times were reduced when       as discussed below, not directly compa-
atres and clinic rooms, leaving Fridays for
                                               comparing areas with and without ISTCs.10      rable with NHS data. This clearly needs
administration.6 Based on case studies of
                                                                                              improvement, and following recommenda-
individual ISTCs, it certainly seems that
                                               How are they financed?                         tions by the Healthcare Commission in
novel workforce management is increasing
                                               Funding for ISTCs is negotiated by the         2007,4 changes have been made to
efficiency and there are lessons to be
                                               DH in the form of five year contracts and      reporting methods in ISTCs; despite
learned for the NHS where clinical and
                                               payment is made based on the NHS               improvements in the last two years, the
administrative agendas are not always well
                                               national tariff, together with a further       quality of data is still not equivalent to that
integrated.
                                               premium to cover capital costs. During the     collected by NHS providers making com-
                                               first wave, ISTCs received a ‘take or pay’     parisons difficult.11
What are the implications for health care
users?                                         guarantee meaning that they received the       Regulation of the ISTCs, as for the NHS,
One of the main stated objectives of the       full contracted value from PCTs irre-          is carried out by the Care Quality Com-
introduction of ISTCs was to provide a         spective of whether or not they reached        mission. However, whilst NHS providers
more patient centred system. The sepa-         activity targets, a payment strategy which     are required to meet ‘core standards’
ration of emergency from elective              has been heavily criticised. The DH            together with ‘developmental standards’,
procedures ensures that patient appoint-       informed the House of Commons that             ISTCs are only required to meet the
ments and procedures do not have to be         Wave 1 ISTC providers received, on             ‘National Minimum Standards’. A new
cancelled if an emergency case is admitted.    average, payments that were 11.2% greater      registration system has been introduced in
Since ISTCs concentrate on specific proce-     than the NHS equivalent cost which incor-      an attempt to standardise regulation but
dures, streamlined patient care pathways       porates other NHS costs such as pensions       there are now new ‘improvement stan-
with efficient pre-operative processes have    ¹. The payment structure was modified in       dards’ which will still only be applicable to
led to high ratings in patient satisfaction    the second wave and although the full con-     the public sector. Whilst these discrep-
surveys. However, one may also argue that      tract value is no longer guaranteed, ISTCs     ancies in required standards and data
patient satisfaction outcomes have no          still receive guaranteed fixed value pay-      publication remain, quantitative compar-
demonstrable correlation with health out-      ments from the DH.                             isons are impossible. The variation in
comes and although clearly important,          There have been further criticisms with        case-mix between ISTCs and NHS facil-
they should be given less importance than      regards to both under and over-commis-         ities is also marked, making even
other indicators.                              sioning of services. Poor initial needs        qualitative comparisons challenging.12
Under new initiatives, patients are able to    analysis and projected demands have
                                               resulted in flawed commissioning and           Further implications for the health system
choose where they have their procedure
                                               under-utilisation of ISTCs. The Raven-         Encouraging innovation is certainly the
performed, however, they are not given
                                               scourt Park treatment centre in London         case in some ISTCs, for example, Boston
any information regarding the quality of
                                               was forced to close just four years after      and Gainsborough Treatment Centre
care provided, thus their choices are not
                                               opening. It was operating at just 50%          implemented a new technique for general
informed, questioning whether it is really
                                               capacity and failing to be cost-effective.     anaesthesia which decreased post-operative
patient choice or government waiting list
                                               Improvements in integrating referrals,         side effects and enhanced recovery time
targets that have driven ISTCs. ISTCs have
                                               both vertically and horizontally, from the     with subsequent improvements in patient
been criticised by clinicians for providing
                                               NHS are certainly required in order to         care as well as improved productivity
inferior care with a low level of monitoring
                                               prevent other centres facing a similar         measures for the ISTC.6 Many prominent
and governance, for example, the British
                                               demise. Over-commissioning has also been       surgeons have argued that these, and anal-
Orthopaedic Association has stated that
                                               a problem, with more procedures being          ogous techniques, have previously been
more revisions of operations are required
                                               commissioned than individuals on current       evaluated in the NHS, and they are neither
when patients are treated at ISTCs.7 This
                                               NHS waiting lists, with resultant negative     original nor innovative and have no
statement however has not been supported
                                               financial consequences.                        discernible impact on service delivery ¹.
by the National Centre for Health Out-
comes Development (NCHOD),8 and in             Criticisms even extend to include selection    There are suggestions that some NHS
fact the chief executive of the Healthcare     policies, with some ISTCs being allowed        providers have responded to a new ISTC

9     Eurohealth Vol 16 No 3
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