Social enterprise: a third way for NHS providers

Released: 30/03/2011

“The social enterprise model provides the right bridge between cooperation and competition in the NHS,” Dr Michael Dixon, chairman of the NHS Alliance, will say in his speech today at Practical approaches to setting up social enterprises, mutuals and cooperatives conference, held at the King’s Fund.

Dr Dixon will argue that whereas private companies may have to manage the pressure of being more accountable to shareholders than patients, the social enterprise model provide a number of safeguards. “Clearly commissioners should, to some extent, be there to ensure that private providers do deliver on their promises and put patients first. However, a healthy social enterprise is a compromise between an NHS that is run by the state and an NHS that is run by corporations.”

According to Dr Dixon, co-ownership of local services by frontline professionals, and, in many cases, local people as well will ensure that providers, staff and patients work together and together have the responsibility to use resources cost-effectively and ‘co-produce’ as much as possible.

He will say: “This will be crucial in the new world where improving personal health, community health and the ability of patients to self-care may be the difference between an NHS that is sustainable or not. If we create an NHS where providers are encouraged to provide as much as possible and patients are encouraged to behave as consumers, then we will end up with spiralling costs. The solution should see professionals and patients being committed to each other, communities and the wider NHS. The social enterprise model provides that link between goodwill and altruism of previous systems and commitment to good business practice and cost efficiency with the new.”

Ends.

Notes to editors:

1.   NHS Alliance brings together GP consortia, PCTs, clinicians and managers as the leading organisation in primary care. We are an independent non-political membership organisation proud to be at the forefront of clinically-led commissioning. Its leaders are all dedicated professionals, who represent the Alliance’s diverse membership, working ceaselessly to meet the challenges facing the NHS today. Find out more at www.nhsalliance.org

2.   For more information, please email pressoffice@nhsalliance.org or call 07772756674.