The Royal Orthopaedic Hospital NHS Foundation Trust

Population 1,070,000
Beds 128
Income £71,242k
Comprehensive Surplus £621k
Operating Surplus £2,430k
EBITDA 8.1%
PPI Cap 4.3%
PPI £775k
Public Members 6,004

The trust has a private patient unit with eight beds [1]:

The Private Ward has 8 single rooms, all with en-suite facilities.  There are further private facilities on other specialist wards, such as the Paediatric and Oncology wards.

In the Annual Accounts [2], the trust lists an interesting arrangement with BMI to achieve more capacity:

The Trust is engaged in providing a range of orthopaedic and other procedures to patients. BMI Healthcare limited has granted a lease to the Trust for the use of facilities at the BMI Edgbaston Hospital, for the provision of orthopaedic services to patients.

At the end of each calendar month BMI Healthcare will invoice the Trust for a sum equal to the charges payable in respect of that calendar month.

There is nothing in the agreement intended to, or shall operate to, create a partnership between the Trust or BMI Healthcare, or to authorise either party to act as an agent for each other, and neither party shall have authority to act in the name or on behalf of, or otherwise to bind the other in any way.

The lease with BMI Healthcare limited expires 31 March 2012.

In the Annual Report the trust says that one aim to achieve its vision is

Work with partners to provide much more than health services – offering applied research and clinical trial facilities, academic training at undergraduate and postgraduate level, a comprehensive range of therapies and private patient facilities.

In the Forward Plan [3] the trust says that the private sector market is limited, but it intends to develop a “niche private patient service” in 2012:

The trust is aware, through its active horizon scanning, that the private sector market for orthopaedic services locally has been hit by the economic recession. ROH had aspired to consolidate its position in this market by 2012 but this has not been possible or sensible in light of prevailing market conditions. The trust will develop a niche private patient service re-launch in summer 2012.

The plan also highlights the threat from a new private provider (Circle?):

The trust is also aware of a potential new-build facility for orthopaedic care being developed by a provider which provides both private and NHS services. This potential threat may be opened by 2015 and ROH has already begun to develop its position as a direct competitor. It is likely that this service will only offer routine orthopaedic work rather than have capacity for the complex work undertaken at ROH and it is believed it will put greater pressure on existing providers of orthopaedic services to private patients rather than on ROH.

The trust lists AQP as a key risk:

There is a reduction of referrals through patient choice or any qualified provider initiatives. The trust is ensuring that patients receive good care and a positive patient experience and is committed to publishing outcomes of procedures to demonstrate good care;

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[1] www.roh.nhs.uk/patient-visitor-information/private-ward
[2] www.monitor-nhsft.gov.uk/sites/all/modules/fckeditor/plugins/ktbrowser/_openTKFile.php?id=13041
[3] www.monitor-nhsft.gov.uk/sites/all/modules/fckeditor/plugins/ktbrowser/_openTKFile.php?id=11741

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