HC Deb 06 December 1994 vol 251 c137
12. Mr. Hoon

To ask the Secretary of State for Health what is the average cost to the national health service to administer (a) a general practitioner fundholding practice and (b) a non-fundholding practice.

Mr. Malone

General practitioner fundholding practices receive additional allowances for directly managing their funds and purchasing care on their patients' behalf. These amount to around 2 per cent. of budgets set and are excellent value. It is not possible to disaggregate other administration costs from total costs.

Mr. Hoon

The Minister has conspicuously failed to answer my question. Does he agree with the results of a survey into fundholding in Oxfordshire, which shows that the administration costs of fundholding practices are more than four times the administration costs of non-fundholding practices? Does that not show that the taxpayer is being asked to pay over the odds for a discriminatory, two-tier service?

Mr. Malone

I am sorry that it has not occurred to the hon. Gentleman that the reason is that fundholding practices do things in addition to those done by non-fundholding practices. The administrative costs that apply to a lot of the work of non-fundholding practices are borne by family health services authorities. If the hon. Gentleman does not understand that, he does not understand much about the matter. I hope that he will go back to his constituency and ask three of the fundholding practices there, all of them in extended, purpose-built premises, what their transaction costs are and what their administrative costs are. I bet that he will find that they are giving exceptionally good value for money and that, in addition to that, they are providing even more patient care.

Mr. Hoon

indicated dissent.

Mr. Malone

I am sorry that the hon. Gentleman shakes his head and does not like it.