Bed Blocking and One Solution

Bed blocking in the NHS is a serious problem. For example, it is estimated that in 2024, over 12,000 patients in England were in hospital who no longer needed to be there. Many of these are due to care planning delays and basic lack of adequate provision for suitable accommodation, but some are due to the patient’s refusal to leave.

This was highlighted in a recent legal case where the NHS applied to the court for a possession order. That was granted. The patient had been there for 18 months and from photos of her hospital bed had clearly settled in. With free meals and other facilities this might seem to be a comfortable life but is not medically sound. Long-term lack of physical activity is not good for any patient.

A full report on this case is present here:  https://localgovernmentlawyer.co.uk/healthcare-law/174-healthcare-features/59982-bed-blocking-possession-orders-and-discharge-planning

Local Government Lawyer is a web site that reports on many interesting legal cases, particularly in local councils and other public bodies. It’s worth signing up for their free newsletter if you have an interest in such matters. With lawyers and legal decisions interfering more and more in our lives, which is much to be regretted, it’s worth keeping an eye on.

Roger Lawson (Twitter: https://x.com/RogerWLawson  )

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Storms, Floods and A&E Visits 

 All media is awash with stories about floods, travel disruption and how the climate may be changing. I certainly feel sorry for those people whose homes or businesses have been damaged but these events are not exceptional.

In my 70 odd years of life I and my family have seen it all before. We had trees blown over a few years ago in our garden, and in 1987 I could not get to work as trees blocked the road between Chislehurst and Orpington. My wife insisted on waking me up that night otherwise I would have slept through it. I certainly remember that storm.

My wife had her parental home flooded in the 1953 North Sea storm surge in Sheerness, since avoided by a higher sea wall. My grandmother regularly had her house flooded in Wilford near Nottingham by the River Trent bursting its banks – since prevented by flood prevention measures.

In Orpington where I had an office in the 1980s the car park regularly got flooded to a depth of over 6 feet and it happened so quickly that users were unable to move their cars in time. This was due to inadequate drains in the High Street.

I think the moral of these events is don’t buy a house next to a river or near the sea (even tsunamis are a threat to parts of the UK). And check the local drain system.  

Yesterday was certainly windy – I had some difficulty walking from the car park to the A&E unit at Farnborough hospital (PRUH) on Sunday morning. But the service there was excellent to deal with a bleeding fistula. All resolved in about one hour. There are many complaints from the public about the NHS but I have found emergencies are usually dealt with quickly and efficiently. There are some problems in other services though which I won’t go into here. And I am getting quite fed up with the number of text messages I get from the NHS. They repeatedly send me messages to which I cannot respond.  

Even though the winds were very strong this weekend, most of the trees had already lost their leaves which means few of them blew over around here.  

The longer one lives, the more exceptional climate events one experiences. These are random events not the result of significant climate changes. Rail and road operators should anticipate such events and build the infrastructure with sufficient resilience.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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Failures in IT Services – They Should Not Happen

The big new story yesterday was the closure of Manchester airport due to power failures. All flights were cancelled on Saturday from two of the terminals with passengers left stranded and nowhere to go for many hours.

Now as a former IT manager I can advise this simply should not happen. Even 40 years ago when I ran the IT operations of a major UK retailer the object was to keep our IT systems up and running for 24-hours a day with minimal downtime and that was achieved. We had disaster recovery plans to cope with hardware and power failures. We needed 100% uptime to enable us to process shop orders. We were never out of action for more than a few minutes.

The NHS is plagued with similar problems of lack of provision for IT failures. The latest news is that the service who provide blood testing to Guys Hospital have been subject to a ransomware attack and have exposed my personal information on the web, presumably after they refused to pay. The service was out of action for some days. Did they not have a back-up and recovery plan they could invoke?

The exact reason for their exposure to a ransomware attack has not yet been revealed but it is probably due to hacks of password access or insecure web systems. Intercede (IGP), in which I hold shares, can improve the security of personal log-ins via identity verification which is essential for any large organisation which is vulnerable to attacks. The failure of the NHS to protect its systems and that of its sub-contractors is surely down to incompetent management which is a persistent theme in the NHS.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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The Danger of Sepsis – Craig Mackinlay Returns

It was good to see the return of Craig Mackinlay M.P. to the House of Commons after surviving a bad attack of sepsis. But he did have to have all his legs and arms amputated – see https://www.bbc.co.uk/news/av/uk-politics-69048172 . As I have pointed out before, sepsis is exceedingly dangerous and I was very lucky to survive it myself a few years ago. See https://roliscon.blog/2024/02/08/sepsis-and-how-to-diagnose-it/ . I did not need any amputations but I could not walk again for some weeks.

A lot of media coverage in the last few days has been on the failings in the NHS over the infected blood scandal and the inquiry into the Post Office Horizon scandal.

In both cases civil servants employed by the Government covered up the problems and effectively delayed action. Why is this allowed to happen? Unfortunately it is a fact of life that bureaucracies always defend themselves. Nationalisation of public services will always result in similar scandals – not all might be so bad as to cause so many deaths but financial detriment will always occur.

Competent management is what is required but that is hardly common in the NHS and from my experience of working for the Post Office many years ago I would say the same about that. In the NHS people get promoted on medical or academic qualifications, not on proven management or leadership competence.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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Lords Debate on NHS Sustainability

Last week I wrote a blog post on “The NHS is killing us” – see https://roliscon.blog/2024/04/12/the-nhs-is-killing-us/ . Last night I had a dialysis session and after watching a couple of old movies I turned over to the BBC Parliament Channel and was surprised to see my sister (Baroness Murphy) speaking on a debate on NHS sustainability – recording here: https://www.bbc.co.uk/iplayer/episode/m001yg9p/house-of-lords-sustainability-of-the-nhs?seriesId=unsliced&page=1 .

She made a good contribution and there were several others. Often from people very knowledgeable about the NHS (for example by sister worked in it for many years and latterly chaired an NHS trust).

Many people think the House of Lords should be replaced by an elected body or similar but it actually does good work as it’s now full of people who are expert in their fields. Perhaps the hereditary peers should go but otherwise I would leave it unchanged.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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Babylon Healthcare and WeWork Collapsing

A report in the Daily Telegraph has suggested that Babylon Health is close to collapse. Babylon have developed an innovative software product for diagnosis in a GP environment and has been used by the NHS. The company listed in the USA in 2021 and was one of the UK tech hopefuls for which a bright future was foreseen. It was even backed by the Government as it might relieve pressure on GP services. But the party is over it seems. I am not clear why it is failing – lack of cost control may be the problem.

I have been using the NHS a lot of late due to declining kidney function (25-year-old transplant is failing) and had a fistula added in readiness for dialysis last week. Am apparently not fit enough for another transplant at present. I am receiving lots of advice about improving mobility and health from an “elderly person’s review” at Guys Hospital and from local social services (albeit 3 months too late). My short-term memory is clearly declining not helped by the drugs I am taking but I can cope with that. If we meet don’t be surprised if I can’t remember your name!

Another past shooting star that has fallen back to earth is WeWork which I commented on in previous blog posts – see https://roliscon.blog/?s=wework. The FT has reported that “substantial doubt exists about the Company’s ability to continue as a going concern”. This is a property company in essence, renting out short-term office space with a dubious business model particularly when New York and other major cities are now awash with empty office space.

Bearing in mind I am averaging two hospital appointments per week at present, you may find my blog posts become less frequent. Just had another call to arrange a heart scan.

The NHS, particularly Guys Hospital, are generally efficient and do not deserve all the criticism they get although they could certainly use more technology.

Can’t say the same about other hospitals or GP services.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

See https://www.telegraph.co.uk/business/2023/08/08/babylon-tech-nhs-digital-gp-app-faces-collapse/

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Reflections on the NHS, and Managing its Resources

Many people are celebrating the 75th anniversary of the founding of the National Health Service (NHS). As someone who has relied on it to keep me alive for the last 75 years, I am not however applauding it.

The NHS was certainly an improvement on health care provision in the UK before 1948 which I recall my parents talking about, but it does not compare well against the systems in most countries now. This was made very clear in a recently published report by the Kings Fund – see  https://www.kingsfund.org.uk/blog/2023/06/comparing-nhs-health-care-systems-other-countries-five-charts

To quote from it: “The UK has less medical equipment and fewer beds. Spending on health care increased substantially in the UK during the Covid-19 pandemic. But despite this, spending per person remains lower than the average [of comparable countries]. This impacts on the patient experience. For example, although there is no objectively ‘ideal’ number of scanners, the UK has fewer CT and MRI scanners than any of the comparator countries, which could be a reason – alongside shortages of imaging staff – for why diagnostic waits in the UK are so high.

The UK also has fewer hospital beds; 2.5 beds per 1,000 people, compared to an average of 3.2 beds per 1,000 in our basket. Again, fewer beds are not necessarily bad – this could reflect shorter hospital stays – but the high occupancy rates of beds in the UK (88 per cent in 2022/23, above recommended levels, and third highest in our basket) implies there is a shortage”.

There are clearly shortages of staff and long waits for non-urgent treatment which is driving people to pay privately for treatment. The Government has recently announced a new “long-term” plan for NHS staffing – see https://www.england.nhs.uk/2023/06/record-recruitment-and-reform-to-boost-patient-care-under-first-nhs-long-term-workforce-plan/ which includes this statement: “For the first time the Plan sets out long term workforce projections. Staffing shortfalls have been an issue since the foundation of the NHS and vacancies now stand at 112,000. The growing and ageing population, coupled with new treatments and therapies, means that without action, the gap could grow up to 360,000 by 2037”. Is it not astonishing that there has been no long-term plan before to match recruitment and training of staff to match likely demand?

As someone who has been a big user of the NHS over the last 75 years I have seen the problems in person. I have had a long history of kidney disease and other problems and a visit this week seems to suggest that the NHS is managing demand in a new way.

I have been on kidney dialysis before and had a transplant 25 years ago. But I either need another transplant or need to go on dialysis again. A meeting with a consultant last week was somewhat disconcerting. He explained how tedious dialysis can be, which I already knew. Without spelling it out, he seemed to be suggesting that at the age of 77, did I really want to stay alive much longer?

Is this another way to manage demand on the NHS? Persuade patients to give up hope? Dialysis is an expensive process for the NHS – more expensive than a kidney transplant but I am allegedly not fit enough for that. I am not keen to give up living just yet but the NHS appears to be managing its resources in a new way.

There is one thing for certain. The NHS is very bad at planning and managing its capacity. Last year I spent two weeks in Farnborough hospital which was an absolute waste of my time and hospital resources when I could have been treated as an out-patient while the ward conditions in a heatwave were very uncomfortable. This is simply not good enough in the modern world.

The NHS needs much more substantial reform to make it fit for the future. More money alone is not the solution. It needs major management reforms.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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EMIS Bid and Comments on Capital Gains Tax

Last week was certainly a depressing one for stock market investors. My portfolio was down substantially even taking into account the last-minute announcement on Friday of an agreed takeover bid for EMIS Group (EMIS).

This is a cash offer of 1,925p which is a premium of almost 50% to the recent trading price so is surely likely to be accepted. EMIS is one of my longer-term holdings – first purchased at 485p in 2011, but it has been somewhat disappointing. Overall total return has been 12.7% per annum including the latest bid premium but with a strong position in the supply of medical solutions they should surely have been making big profits in the recent pandemic and in the support of the NHS where large amounts of money are being spent. I think the big problem has been having the Government as a major customer who tend to dictate the pricing.

I did buy a few more shares recently at 1,272p but failed to have the courage of my convictions and should have bought more. Like many investors no doubt, I have gone on a buying strike and am selling as the market trends down rather than buying.

My capital gains tax charge for last year is only moderate but with holdings in Ideagen and EMIS soon to be realised I will be paying a big bill this year. Capital gains tax should be indexed now that inflation is reaching 10%. I will be paying tax on fictitious, not real, gains.

Perhaps ShareSoc should be taking up that issue.

Will the market improve over the summer? I doubt it until there is better news on the economic front. We appear to be heading into a worldwide recession prompted by higher commodity prices. There may be some share bargains appear in the next few weeks but I personally won’t be rushing back into the market.

Meanwhile I am at least out of hospital but have written to the Chairman of the local NHS Trust to complain about the dysfunctional management and waste of resources. There is lots of money being spent on the NHS but the patient experience is still crap.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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Barton Biggs and Hedge Hogging, plus NHS Dysfunction

I managed to finish reading the book Hedge Hogging last week during my 7 days in hospital. Here is a longer review.

The author Barton Biggs spent 30 years at Morgan Stanley building up their investment management business. In 2003 he formed his own hedge fund named Traxis Partners which was wound up after his death in 2012. But this is no out of date history of past financial events as much of what it covers is topical and relevant to today’s stock markets.

It’s partly a journal of events in his life but with extensive diversions into the big issues most investors face particularly the psychological difficulties that you can face. Topics such as short-selling, private equity, emerging markets, market bubbles and investment cycles are covered – we certainly seem to be in a down cycle at present rather than a temporary correction. As an investment strategist over 30 years he obviously experienced a variety of market conditions. He covers the two main investment approaches – based on growth and value but in essence was agnostic.

He has some interesting comments on Ronald Reagan and Margaret Thatcher – the latter he met more than once. He explains the success of the Yale Endowment Fund under David Swensen and explains to an audience of tech stock fanatics that “the human emotions of fear and greed that drive the stock market to excess have not changed over the course of human history and remain as valid today as in the past. Busts are busts, booms are still booms, and bubbles always burst, but this was boring stuff, and the crowd stirred restlessly. The glitterati understandably had no interest in hearing about busts or bursting bubbles. On to the next IPO and salacious stock idea”.

A good paragraph that gives you an impression of his writing style is the following: “If you hang around the investment business long enough eventually you experience some mysterious, almost supernatural events because the stock market is a capricious beast, almost a force of nature like the sea or the arctic. It can be bountiful and loving in its embrace but also hard and cruel and sadistic. Making your living from the stock market is a strange, hazardous, yet beguiling occupation. It’s a little like being a ship’s captain back in the time of wind and sail. As the master of a whaler out of Nantucket in those days of yore, in good fair, you blissfully rode the ocean’s friendly currents. Then suddenly without warning, the sea would turn and you would find yourself driven helplessly toward some distant rocky shore by one of its fierce, irrational storms. Men and women who live at the mercy of the whims of the sea and weather are a superstitious lot”.

He ends with a review of the biography of John Maynard Keynes by Robert Skidelsky which I have lined up as my next book to read. In all Hedge Hogging is a fascinating look at the world of hedge funds but there are many lessons to be learned from it for ordinary investors.

Lastly let me say about a few words about my stay in an NHS hospital, which was not for the first time. The popularity of the NHS is falling and quite rightly. It is a dysfunctional organisation that does not compare well with the systems in other countries (bar the USA).

I cannot complain about the treatment I had but the big problem is the culture. Treating patients as children to be organised and disciplined, not as people. It was also very wasteful, keeping me in bed when I was only “walking wounded” as the army might say when I could have been treated at home for most of the time at less cost. How do you reform the culture of an organisation? With great difficulty is the answer. Easier to start from scratch.

Roger Lawson (Twitter: https://twitter.com/RogerWLawson  )

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FT Article on the NHS

There is a very good article in the Financial Times today concerned with the panic over privatising the NHS. I added this comment on-line: ” I write this from my NHS hospital bed. There can be wonderful service from the NHS but it can also be very bad – waiting lists for surgery or cancer treatments are examples. I would hate to have to rely on the NHS solely for medical treatment as most people do. Over 30 years I have learned that the NHS is slow to reform and adopt new technology. It’s a bureaucracy and not run like a business with customers. The NHS still treats you in what they consider is best and most efficient for them. There is little response to customer demands or views. That is what needs changing with more financial incentives”.

It looks like I may be here some time but I expect they will keep me alive as they have done for the last 30 years (I am a kidney transplant patient). It does enable me to finish reading Barton Biggs book Hedge Hogging which I mentioned in a previous blog post. This is a really good book that everyone involved in the financial world should read. I’ll try to do a more expansive review at a later date as it’s not easy to use a laptop in bed. It’s not just relevant to hedge fund managers!

Glad to see the market is in soporific mode with no big movements in my holdings. Trading from your sick bed is never a good idea as treatments can affect your brain or your emotions.

Roger Lawson