"Innovation" is an NHS buzzword. It shouldn't be.

Martha Gill's Irrational Animals column.

“Innovation” has been an NHS buzzword for quite some time. It’s how they think they are going to make money. The word peppers Andrew Lansley’s sentences and appears on every NHS website. It turns conference speeches into tongue twisters and makes job titles too long to fit on to name badges. But let’s cliché this down. Being innovative is like being a lady. If you have to tell people you are . . . you  aren’t. The NHS isn't.

Not that promoting innovation is a bad aim. One bright idea, one new drug and you can potentially generate billions. This is the thought in the minds of the policymakers who have directed several taxpayer billions to this end.

But here’s the problem. A great deal of the money has gone towards creating “facilitatory groups”, such as the National Institute for Health Research – boards that manage the interaction between NHS employees with the new ideas, and the companies that might want to invest in them. Yet the interaction is an unhappy one. The inventive employees must now fill out a vast amount of paperwork and jump over many more hurdles than they used to. The boards are large and unwieldy, absorb a huge amount of capital and are made up largely of ex-nurses, inexperienced in business and, by training, highly risk averse.

Being unwilling to take risks is all very well in patient care but it can lead to utter stupidity when it comes to investment decisions. This was perhaps best demonstrated in 2006 by the US economists Uri Gneezy and George Wu, in one simple, cruel experiment.

Participants were asked to state how much they would pay for a $50 book token, a $100 book token, and to take part in a lottery in which they would win one or the other. It turned out that on average they were willing to pay $45 for the $100 token, and $26 for the $50 token.

So far so predictable. But then, in the lottery, things became a little uncertain and the participants started acting ridiculously. Given a 50 per cent chance of winning the more expensive token and a 50 per cent chance of winning the cheaper one, subjects were only willing to pay an average of $16. This was a situation where the worst possible outcome was getting the less expensive book token, but they valued it less than one in which they were guaranteed to get that token. Madness. Unless people are experienced in business, the smallest whiff of uncertainty can completely unsettle them.

Selling out

But even when these inexperienced NHS boards do take a risk on an idea, they simply don’t have the capital to protect it properly. The new drug or surgical device is therefore sold off at a very early stage of development, relatively cheaply, to private companies. If it turns out to cure cancer, it is the that company profits, not the NHS.

Far from being a profit-generating “centre for innovation”, then, the NHS has become a feeding ground for lean, mean American companies who cherry-pick the best ideas and capitalise on the revenue. It’s time for the NHS to take a lead from the private sector where it counts. They need to stop investing in “facilitators” and start investing properly in ideas. That’s where the money is.

Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

This article first appeared in the 23 July 2012 issue of the New Statesman, Israel: the future

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Commons confidential: Away in Pret a Manger

Corbyn's lunch, a Keith "Vazz" hunch and the New Left Book club.

Comrade Corbyn, despite the pressures of leadership, remains the Anne of Green Gables of British politics, maintaining an almost childlike joy in everything he does. Pride of place in Jezza’s Westminster office is a Lorraine Kelly mug. Corbyn asked for the memento after appearing on the popular telly host’s ITV show – where the pair discussed his interest
in manhole covers.

There’s no record, as far as I can ascertain, of Kelly requesting a Corbyn mug. And yet the sustained abuse Corbyn receives from Labour critics, Conservative enemies and the Tory press isn’t generating hostility on the streets. People still clamour for selfies with the bearded lefty. My snout sat in awe in a Pret a Manger (Comrade Corbyn likes to pop out for his own sarnies, rather than dispatch a flunky) as the queue disintegrated, with punters hungry for snaps.

The Corbyn apparatchik and London City Hall escapee Neale Coleman said: “The one thing I learned from Boris Johnson was never say no to a selfie.” Corbyn must hope he absorbed more than that.

Perhaps the unlikeliest odd couple in parliament is Labour’s Warley Warrior John Spellar and the purple shirt Nigel Farage. Both went to the private Dulwich College in south London. Spellar, who spearheaded his party’s anti-Ukip campaign before the election, won a free scholarship and likes to remind Farage that the Kipper’s fees would now be £18,000 a year. “I passed the exam, too,” sniffs Farage, “but my father earned too much, so we had to pay.” One school, two backgrounds.

Trade unionists no longer regard attacks by the Tory press as just a badge of honour. Aslef’s president, Tosh McDonald, a train driver, wears a black T-shirt with the slogan “Hated by the Daily Mail” on it, after being denounced by Paul Dacre’s organ. I suspect Labour’s Keith Vaz is unlikely to revel in a message sprayed on the side of a van in Leicester. The fastidious chair of the home affairs committee is entitled to challenge at least one inaccuracy in the statement: “KEITH VAZZ IS A KNOB.”

“Any idiot in opposition who argues that government legislation can somehow be got through without programme motions should be taken out to the nearest lunatic asylum.” Who said that? Ken Livingstone? No, Kevan Jones. In June 2010. How times, and language, change.

To the launch of the new Left Book Club, where a director of the Corbynista reading circle, Anna Minton, waved a personalised glossy invitation to join the Institute of Directors. The Pall Mall bosses’ club’s direct mailing system is way off target.

I wonder: what could expelled Tory trickster Mark Clarke have on Grant Shapps?

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 26 November 2015 issue of the New Statesman, Terror vs the State