Umbrella Companies | Will NHS reforms benefit umbrella company contractors?

Will NHS reforms benefit umbrella company contractors?

More than 75% of the top interim managers in the NHS believe the government’s efficiency savings will impact negatively on the delivery of frontline services, according to Interim Partners.

In July, the government announced its intention to implement efficiency savings of between £15 billion and 20 billion by 2015.

Steve Melber, a senior consultant at Interim Partners, pointed out that interims, some of which work through umbrella companies, are masters at stripping out waste but they feel the NHS cannot save this much money within the timeframe, especially when major reforms are taking place at the same time. They believe waiting times will increase and the quality of frontline services will be adversely affected.

The changes that are going to affect the NHS could lead to an increase in demand for contractors. The REC believes that flexible working will have a key role to play in successfully managing public sector reforms.

Tom Hadley said the flexible working model can help the NHS manage staff efficiently. By harnessing the contribution of trained and vetted locums and contractors, the NHS can ensure front-line services continue to be delivered and permanent employees get the crucial support they need.

Andrew Lansley, the Secretary of State for Health, recently announced plans for a major reform of the NHS. In his Health and Social Care Bill, Lansley will abolish Primary Care Trusts and strategic health authorities thereby reducing management costs in the NHS by 45%. This move is expected to cause 20,900 redundancies and cost the NHS £1.024 billion in redundancy payments.

Redundancy payments will be the largest expenditure during the reorganisation followed by £264 million spent on IT and accommodation.

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