§ Mr. MaddenTo ask the Secretary of State for Health what statutory provisions apply to the contracting out of laboratory services by regional and district health authorities; if he is required to approve the terms of such contracts; and if he will make a statement.
§ Mrs. Virginia BottomleyUnder section 23 of the National Health Service Act 1977, and regulations made under that Act, regional and district health authorities exercising the Secretary of State's functions have the power to arrange for non-NHS bodies to provide services 419W under that Act. The Secretary of State's approval of the terms of contracts is not required as the health authorities concerned would be acting on his behalf in arranging such contracts. Key issues for health authorities to take into account are the need for appropriate involvement of the individuals and groups concerned and the achievement of cost-effectiveness.