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Cost Fear Under New Community Equipment Changes
03 February 2010
Efficiency savings will not be realised without an integrated approach. An independent report produced for industry and conducted by the centre for economics and business research ltd, has found the new model of delivery could trigger economic cost of up to £13.4 million per annum nationally.

The report, commissioned by the British Healthcare Trades Association from the centre for economics and business research ltd, is in response to the Department of Health initiative to transform the way community equipment is provided.

Circa 3.8 million pieces of community equipment such as walking sticks, hand rails, beds and lifts are issued each year, making community equipment services a vital part of the health care and social services system.

A well functioning community equipment service can take pressure off primary care providers such as hospitals by allowing patients to return quicker to their homes, preventing injuries as well as allowing older people to live independently for longer.

While the BHTA supports the intended objectives, the cebr report finds that in its current form the TCES policy proposal is likely to miss its objectives. Although the changes are aimed at increasing access to equipment for patients, the BHTA is worried it could backfire and has highlighted the following main concerns:

1. The retail model to date only considers simple, low value community equipment (simple aids for daily living). It therefore neglects the other three quarters of the community equipment spending which go towards complex community equipment. By not recognising the relationship between complex and simple equipment, which are often prescribed in tandem, the government is likely to miss efficiency savings. An integrated approach is needed.

2. The economic impact assessment shows that the proposed retail model is a less efficient way to provide community equipment. A nationwide adoption could trigger additional cost of up to £13.4 million for private households and public services providers.

3. The many different ways in which community equipment services are provided – ranging from pure private sector to full public service approaches – means there is no common base case for a national impact assessment. This casts doubt on the cost savings claims made by the Department of Health.

4. Additionally, the incentives of the new retail scheme are likely to lead to a sluggish take up among retailers with predominantly those with large outlets stocking the equipment. This may lead to an under-provision in less densely populated areas.

Phil Isherwood, Chairman of the BHTA commented:

“This report throws up real concerns about the Government's figures but provides an opportunity for the policy to be revised before it is too late. We are concerned that the new model, as it stands, could exacerbate the post code lottery, as a multitude of different approaches are being considered.

- ENDS -

Notes for Editors:

The report “Transforming Community Equipment Services: A review of the financial and economic impact of the proposed community equipment services retail model” can be found here

The centre for economics and business research ltd is an independent economics consultancy with a reputation for sound business advice based on thorough and insightful research. Since 1992, cebr has been at the forefront of business and public interest research. They provide analysis, forecasts and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies and trade bodies.

cebr ltd

Unit 1
4 Bath Street
London EC1V 9DX

Tel: 020 7324 2850
Fax: 020 7324 2855
Website: www.cebr.com

The British Healthcare Trades Association (BHTA) is the UK's oldest and largest trade association in the assistive technologies and healthcare market (founded in 1917). It has more than 380 member companies - both large and small businesses - across the many and varied non-pharmaceutical sectors of the healthcare industry. They provide products and services to those with special physical and healthcare needs via the NHS and Social services and directly to members of the public via BHTA retailers. Sections include mobility, rehabilitation, prosthetics and orthotics, stairlifts, stoma care, emergency care, health and safety training, seating and visual impairment. Key to membership is the BHTA Code of Practice which all members must abide by and which has attained stage one approval of the Office of Fair Trading's Consumer Codes Approval Scheme.

BHTA published a position paper about the TCES programme in October 2008 which can be found here.

BHTA

New Loom house, Suite 4.06
101 Back Church Lane
London E1 1LU
 
Tel: 020 7702 2141
Fax: 020 7680 4048
 
Details regarding the programme to Transform Community Equipment Services, launched in 2006 can be found at: http://www.dhcarenetworks.org.uk/csed/TransformingCommunityEquipmentService/
 
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