Private healthcare companies could avoid paying corporation tax

The GPC has said that it would be illogical to give private companies tax breaks when providing NHS services, one of the proposals in a consultation by health regulator Monitor.

Dr Chaand Nagpaul: ‘It is wholly illogical to provide tax cuts for private providers.'
Dr Chaand Nagpaul: ‘It is wholly illogical to provide tax cuts for private providers.'

Health regulator Monitor is due to publish its Fair Playing Field review next month into whether there is an equal footing for all types of provider to take on NHS services.

A Monitor spokesman revealed that some private healthcare companies have said that it is unfair that they have to pay corporation tax on their profits as NHS providers do not.

GPC negotiator Dr Chaand Nagpaul said: ‘It is wholly illogical to provide tax cuts for private providers and to compare the two as NHS providers reinvest all their resources into patient care.

‘If this went ahead then it would accelerate the commercialisation of the NHS.’

Health secretary Jeremy Hunt is due to lay Monitor’s review before parliament next month.

Monitor’s spokesman said that it has not yet decided if the regulator itself will make recommendations in the review.

Dr Nagpaul said: ‘What Jeremy Hunt should do, should be to value the NHS. He should maintain the current [tax] status [for private providers].

Monitor’s interim report into the consultation published last November said that commissioners are making it too hard for new providers to break into provision of NHS services. It said that providers are worried about ‘poor commissioning procedures’ which favour incumbent providers at the expense of potential new bidders.

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