Nursing Agencies Bleeding the NHS Dry

Topics: English TUC

Posted By: admin | 16/06/2015

Investigation Overview

A Telegraph investigation reveals the boom underway at agencies supplying doctors and nurses to the NHS amid a rapidly deepening budget deficit in the service.

Top (left to right): James Caan, Richard MacMillan and Paul Pindar. Bottom (left to right): the home of Charles Safapour of Mayday Healthcare, the home of Richard MacMillan and the London home of Paul Pindar.

By Gregory Walton, Laura Donnelly and Edward Malnick | 10:00PM BST 31 May 2015

Agency Boom and Revenue Growth

The extraordinary boom in agencies supplying doctors and nurses to the NHS is revealed today. Total revenue at 10 of Britain’s biggest medical recruiters rose by almost 40% over three years, with overall takings of £7.7 billion since 2009.

The businessmen running these agencies earn up to £950,000 a year and live in properties worth millions, prompting warnings that the NHS needs “to get a grip.” One chairman, supplying both the NHS and private sector, lives in a £9.5 million central London home and drives an Aston Martin DB9.

Rising Agency Spending and NHS Deficits

Despite rules suggesting agency doctors should only be used in “exceptional circumstances,” locum use has soared. NHS spending on temporary workers hit a record £3.3 billion, and “catastrophic” debt levels are blamed on rising agency bills.

Simon Stevens, NHS England chief executive, told the BBC’s Andrew Marr Show: “We will have to clamp down on some of these staffing agencies, who are frankly ripping off the NHS.”

Official figures show that NHS foundation trusts increased spending on agency staff by 64% over two years. Barts Health NHS Trust led with an £81 million bill in 2014–15, followed by King’s College Hospital and Royal Free London, each spending over £60 million.

Industry Profits and Executive Lifestyles

Analysis of accounts from 10 major agencies shows collective turnover rose 39% between 2010 and 2013, reaching £1.93 billion. Since 2009, these firms recorded revenues of £7.7 billion and profits of £84.5 million.

Capita / ICS: Independent Clinical Services (ICS) revenue grew 60% in two years to £314 million. Chairman Paul Pindar, formerly of Capita plc, earned £14,500 weekly and lives in a £9.5 million London house.

Medacs: Claims to place more locum doctors in the NHS than any other agency, posting £37 million profit since 2009.

DRC Locums: Owned by Dragons’ Den’s James Caan, made £4 million profit in six years.

Healthcare Locums (HCL): Reported £17.1 million gross profit in 2013; chief executive Stephen Burke owns a £2.4 million Hampshire home.

Mayday Healthcare: Pre-tax profits rose from £6 million in 2010 to £9.2 million in 2014; co-founder Charles Safapour owns a £1.3 million Surrey property.

A24 Group: Founded by Penny Streeter, reported £54 million pre-tax profits over four years; founder now valued at over £60 million.

Calls for Reform

Dr Sarah Wollaston, former Commons Health Select Committee chair, warns of a “domino effect” as high agency rates hamper permanent hiring. Dr Peter Carter, chief executive of the Royal College of Nursing, says: “The NHS needs to wean itself off its over-reliance on short-term staffing solutions.”

Julia Manning of 2020 Health criticises the NHS’s “serious false economy” in cutting back permanent staff only to pay agencies far more. Katherine Murphy, head of the Patients Association, adds: “We continue to bleed the NHS of scant resources to fund the lavish lifestyles of nursing agency owners.”

NHS and Agency Responses

A Department of Health spokesman notes: “Since May 2010, we have more than 23,000 extra clinical permanent staff working in the NHS, including over 9,100 extra doctors and 8,200 extra nurses.”

A Capita spokesperson states its health and care staffing services represent a small proportion of its work. An ICS spokesperson adds flexibility from agency staffing is critical to maintaining patient care standards. Other agencies did not respond to requests for comment.