Private patients owe millions to the Royal Free

Published: 10 February, 2011

Report reveals £4.7m treatment debt

THE Royal Free is owed millions of pounds by private and overseas patients who have received treatment at the NHS hospital.

The £4.7million debt has been revealed in documents published on the Hampstead hospital’s website.

In a report to the audit committee, non-executive director Danny Bernstein warned that “despite repeated assurances that action would be taken to minimise losses, the number and value of losses remained high”. It said total losses this year were expected to “exceed total losses in 2009/10 (£981,882), which was poor”.

The papers also say that Mr Bernstein – a chartered accountant and former managing director of travel giant Monarch Airlines – has asked for “further information to be shared about the private patient outstanding debt of £5,050k [£5.05m]”.

A hospital spokeswoman denied there was a problem and said the figure was in fact £4.7m, adding: “It is normal practice that at any point a trading organisation will have payments outstanding for services provided. The Royal Free has made significant changes to reduce losses and debt write-offs.”

A large chunk of the missing millions are from outstanding payments from overseas patients – so-called “health tourists”.

The Royal Free, renowned worldwide for its renal services, is one of the largest providers of private healthcare in an NHS building in this country. Last year, it was the fifth highest earner from private patient income of all NHS hospitals. Private revenues soared to just short of £14m – up around 20 per cent on the previous year. Private treatments are co-ordinated by the Private Practice Unit based its the 12th floor.

There are 47 rooms with en suite bathrooms and toilets, telephones, televisions and catering – each has “stunning views of surrounding Hampstead village and the Heath”. 

Services include treatment for haematological disorders, cancer care, chemotherapy and palliative care, plastic surgery, liver transplantation, liver medicine, renal and urology, neurological surgery, orthopaedic and vascular surgery, and general surgery.

While private treatment at the Royal Free is nothing new, the extent of the profiting could increase through Conservative health reforms. 

Health Secretary Andrew Lansley has, since being elected, abolished the Private Patient Income Cap, set up as part of legislation establishing Foundation Trusts in 2003, which limited the profits a Foundation Trust could make from treating private patients.  

The Foundation Trust Network had lobbied consistently for the cap to be removed. Now the Conservative Party has taken it away there are strong fears that NHS patients will be sidelined in favour of those that can afford to pay for their healthcare.

Royal Free chief executive David Sloman told the New Journal: “If we provide more private sector income streams and put back into the NHS, then that is to the benefit of NHS patients.”