A ground-breaking decision by the Competition Commission in August means that public bodies, such as NHS trusts, are now subject to regulation under the Competition Act 1998. The case involved a Northern Irish company, BetterCare Group, which alleged that the conduct of North and West Belfast Health Trust was abusive and unfair when it bought residential and nursing care services from BetterCare.
In the early 1990s the then Conservative Government established healthcare trusts which had a statutory duty to provide care for those in need, but, crucially, within economically efficient budgets. Accompanied by a change in income support payments, local authorities began to purchase nursing and residential care services from the private sector rather than provide them directly. The rationale was economics – it was cheaper to buy than to provide.
