07 April 2006
The supply of food, medical equipment and other products to hospitals and GP surgeries could be compromised as staff threaten to strike over plans to privatise their service.
Unison members are angry at plans to sell off the NHS Logistics Authority to a consortium that includes US medical supplies giant Novation and German-owned couriers DHL. It is understood the deal would include a profit-sharing element for the NHS.
The authority became part of the new NHS Business Services Authority on April 1, following the Gershon efficiency review and the Department of Health's internal restructuring of its arm's-length bodies. However, it is still subject to a market-testing exercise which is reaching its final stages.
The Novation/DHL consortium has been chosen as preferred bidder and the deal is due to begin in June. The department said negotiations were ongoing.
Unison head of health Karen Jennings said it was 'risky and premature' to privatise the not-for-profit body, which had an estimated turnover of £781m in 2005/06. The authority's catalogue contains more than 47,000 products, including blankets, cleaning products and stationery, and has more than 600 NHS customers.
Jennings said: 'Last year £3m was returned to NHS trusts as a value rebate – I am sure that DHL shareholders will not want to be so generous in sharing their profits. We are demanding urgent talks but industrial action may be on the cards.'
PFapr2006
