Health, Best Practice Group 5

Competition forces GP practices to provide better care.

Chris Pike, an economic adviser for the NHS Cooperation and Competition Panel, has shown that GP practices that face serious competition, i.e. have another practice located within 500m, provide better care and rate higher in patient satisfaction surveys.

The measurements were based on patient opinion and on rates of hospital referrals (higher levels of hospital referrals suggest lower level of primary care, most noticeable in chronic conditions, conditions that can be prevented by immunisation, or acute conditions that can be avoided by early intervention).

The findings show that removing restrictions on choice and competition, and making it easier for patients to switch GP, may improve the quality of primary care. It may also reduce costs, as hospital referrals are expensive.

Recent studies show that patients are becoming more and more willing to travel for better care, and are increasingly basing their choice on shorter waiting times and lower mortality rates, rather than geographical convenience. Other studies also show that climbing numbers of NHS patients are opting for private healthcare.

(FT, 3rd May)