Conservative Politicians & Private Healthcare: Financial Links & Contracts A Preliminary Report
Summary Research carried out by Unite reveals over 1.5 billion has left the NHS and ended up in the hands of companies who are linked to 24 Conservative MPs. This sum is only a proportion of the total value that continues to rise as a result of the Health and Social Care Act (H&SCA). The scandal is compounded by the fact that the MPs listed below, voted for the Health and Social Care bill, helping it become an Act. The Health and Social Care Act has created a legal mechanism to enforce competition. This in turn has created an open market which provides more opportunities for companies to gain contracts within the new NHS. These selected Conservative politicians represent the tip of an iceberg of financial interest in health care that represent every area of the NHS. 2
Table: Selection of companies attached to Tory parliamentarians and money made thanks to the Health and Social Care Act. Company Value of NHS Contracts Advantage Healthcare (Interserve) 418,729 thousand Link to Tory MP or Lord Lord Blackwell Bupa 235 million Baroness Bottomley Beachcroft consortium 20 million Lord Hunt of Wirral BMI Healthcare (London & Regional) Care UK - The majority of Care UK s revenue is attributable to publicly funded entities such as Local Authorities, Clinical Commissioning Groups and other NHS bodies. Circle 24 million David Cameron 659.6 million 121 million Andrew Lansley, Nick Herbert, David Ruffley, Chris Skidmore Mark Simmonds, Baron Higgins of Worthing, Nicholas Soames, Jacob Rees-Mogg, Kwasi Kwarteng, Jo Johnson Cumberledge 70,000 thousand Baroness Cumberledge Odgers Berndston 200,000 thousand Baroness Bottomley PwC (PricewaterhouseCoopers) 3.4 million Lord Freemen TLC Group 4.43 million Lord Popat The Practice (MMC Ventures) 636,275 thousand William Hague Tunstall 5 million Lord Patten Serco 432 million Lord Glendonbrook & Baroness James of Holland Park SThree 2.6 million Nadhim Zahawi 3
Circle Circle which were the first private company to take over the running of an NHS hospital have also recently been awarded a contract by Bedfordshire CCG as the prime contractor for musculoskeletal services worth 120 million over 5 years. Circle investors are also donors of the Conservative Party and have given money to MPs offices. One of those investors, Robin Odey of Odey Asset Management has donated to the offices of Nicholas Soames, Jacob Rees-Mogg and Kwasi Kwarteng who used to work for Odey Management as an analyst, and Jo Johnson, head of the number 10 policy unit. All voted for the bill. Conservative peer Baron Higgins of Worthing holds shares in Lansdowne UK Equity Fund, another investor in Circle. Baron Higgins of Worthing voted for the bill. Care UK The majority of Care UK s revenue is attributable to publicly funded entities such as Local Authorities, Clinical Commissioning Groups and other NHS bodies. In their 2013 annual report for bondholders, the Care UK group received 659.6 million in revenue for the year. Part of this sum included the purchase of Out of Hours company, Harmoni, John Nash was the Chairman of Care UK. MP: Former Health Secretary Andrew Lansley who co-wrote the health and social care bill received 21,000 to run his office from Caroline Nash the wife of John Nash when he was shadow health secretary. John Nash was chairman of Care UK at the time. Andrew Lansley voted on the legislation with the government. 4
MP: Nick Herbert received donations from Caroline Nash. The donations were 15,000 in 2008 and in 2009. Nick Herbert voted on the Health and Social Care bill legislation with government. MP: David Ruffley also received a 10,000 donation from Caroline Nash in 2009 - Now Care UK has won contracts in his constituency. David Ruffley voted on the Health and Social Care bill legislation with the government. MP: Chris Skidmore who in June 2010 attended a Should we abolish the NHS? event hosted by the free market think tank the Institute of Economic Affairs received 5,000 to his office in run up to the election in 2010 from Caroline Nash. Chris Skidmore voted on the Health and Social Care Bill with government. TLC Care Lord Popat s wife Sandhya Popat is the sole owner of a nursing care home company that has given the Conservative party over 200,000. Lord Popat has given 284,707 in donations to the Conservative party, with one donation of 25,000 given one week after the Tory health reforms were unveiled. Lord Popat was the owner listed until 2013 and his interest as Chairman was deleted after he was made a Lord in June 2011. David Cameron made Dolar Popat a Lord shortly after entering No 10 in July 2010. A freedom of information request has revealed how The Popat family company, TLC Group has made 4.43 million via the new commissioning groups that were created following the Health and Social Care Act. Despite this clear conflict of interest, Lord Popat like all the parliamentarians listed here, were allowed to vote on the Health and Social Care bill helping it to become an Act. 5
SThree Tory MP Nadhim Zahawi is a non-executive director of Sthree which has received at least 2.6 million from the changes to the NHS by providing staff to the new Commissioners of the NHS. Bupa Odgers Berndston Former Health Secretary Baroness Bottomley is a Director of International Resources Group Ltd, is 100% owned by Odgers (Group) Ltd. Bottomley acts as chair for the Odgers Berndtson Board & CEO Practice. The practice conducts searches for high level Chairmen, CEOs and non-executive directors for plc s and private companies. Richard Boggis-Rolfe the chairman of Odgers Berndtson has given 207,500 in donations to the Conservative party up until the election. They have been responsible for filling key positions in the new NHS regulator Monitor. In total twelve senior personnel have been sourced and vetted by Odgers at a cost of nearly 200,000. Baroness Bottomley voted on the Health bill and when speaking at a Health bill reading said 'I give this Bill an unequivocal and extraordinarily warm welcome.' At the time of the bill, Ms Bottomley was a non-executive director of Bupa who recently won a 235 million contract to act as a prime provider of musculoskeletal services. 6
Cumberlege Eden & Partners Baroness Cumberlege owns a training company that prior to the health bill moved into an alliance that was vying for contracts to develop the new CCGs. Her company then went on to gain several contracts doing just that. Ms Bottomley also voted on the Health bill, helping it become an Act. She secured 1,200 + VAT for a one-day course for Horsham and Mid-Sussex and Hastings and Rother CCGs. Her company was paid 12,896 from NHS South-Eastern Hampshire and NHS Fareham and Gosport CCGs via a bursary from NHS South-Central SHA for one-day course on 'Understanding Politics Masterclass.' In addition Cumberlege Eden & Partners went on to gain over 50,000 in fees from Health Education England BMI Healthcare David Cameron s leadership campaign and the Conservative party received donations from private equity investors in General Healthcare Group (GHG). General Healthcare Group (GHG) is owned by a consortium led by Network Healthcare Holdings (Netcare), the largest private healthcare organisation in South Africa, which gained international notoriety in 2010 after admitting involvement in organ trafficking. The private equity firm Apax Partners has a 32% minority stake; the secretive Livingstone brothers property company London and Regional owns around 7.5%. GHG operates under two brands; one of them is BMI Healthcare, the UK s largest chain of private hospitals. 7
Adrian Beecroft is a director of Apax Partners, he joined in 1984, and for many years was its Chief Investment Officer. He has donated over 500,000 to the Conservative Party since 2006. London and Regional donated 10,000 to David Cameron s leadership campaign in 2005. They have donated 76,930 to the Conservative Party, 50,000 in 2010 before the H&SCA and 26,930 on 21 August 2012 after the H&SCA had passed. The Practice Plc William Hague received donations from Bruce Ferguson MacFarlane, founding director of MMC Ventures, which part-owns The Practice Plc. Bruce Ferguson MacFarlane donated 20,000 to William Hague in four amounts on 06/02/2006, 23/05/2008, and 23/02/2009. Alan William Morgan, founding director of MMC Ventures, donated 5000 to William Hague on 23/05/2008. The Practice Plc runs 60 GP surgeries and further clinical assessment and treatment services (CATS) across the NHS. 8
Serco Both Lord Glendonbrook and Baroness James of Holland Park have shares in Serco, who have gained multiple contracts in the new NHS including 140 million (community care in 2012) + 32 million Out of Hours (2011) + 140 million (Cleaning, portering, for five hospitals 2012) + 120 million (IT, estates and facilities to Cambridgeshire and Peterborough Trust 2012). Tunstall Lord Patten is a senior adviser to Charterhouse Development Capital Ltd who partown Tunstall, who gained a 5 million contract from Gloucestershire CCG for the provision of telehealth services Tunstall have gained revenue in other areas including as an example 253,941.32 from just one CCG in Oldham. PricewaterhouseCoopers Lord Freeman is on the advisory board of accountancy giants PwC, who gained over 3.4 million developing the new Clinical Commissioning Groups. Beachcroft consortium Lord Hunt of Wirral is a Partner with the legal firm Beachcroft, who Beachcroft moved their company into an alliance led by Capita to develop the shadow Clinical Commissioning Groups as Lord Hunt of Wirral was voting on the bill. In July 2011, Beachcroft were part of a legal consortium that won a 20 million contract to provide legal services for procurement for more than 100 NHS organisations. 9
Advantage Healthcare Interserve purchased Advantage Healthcare in December 2012, who provide care services to CCGs. Lord Blackwell is Chairman of Interserve and said "We see the healthcare and care at home sector as key growth markets and this acquisition both expands our capability, while also being a further step towards delivering the group's medium term strategy of greater front-line service provision. Advantage Healthcare has gained over 400,000 from just two CCGs, Southwark and South Tees. 10
Unite the Union is proud to support The Peoples NHS Campaign, powered by local health professionals, and the community. http://www.peoplesnhs.org/ 11