UK Hospital trusts are relying more and more on private income to boost their finances, with one Trust making more than half their income from commercial activities, a new study has revealed.
The study was led by a team of experts from York and the University of Birmingham, concluding that there is a"clear direction towards commercialization" which has been aided by legislation passed by the Coalition government in 2012.Professor Neil Lunt, from the School for Business and Society at the University of York, said,"We have identified a shift in language to defend such income and explored how entrepreneurialism has been justified with a public service ethos.
"While the majority of their funding will still come from public/state sources, NHS organizations are implementing entrepreneurial strategies which are seen as essential to underpin core NHS services." "In turn, this will reorient the organizations and their staff with a potentially detrimental effect upon a public service logic. The tension between public service and commercial imperatives has long been apparent but the logic and consequence of them has become more acute recently. The likely intensification of this tension will reveal further the impact of such strategies upon 'core' public services.
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