NHS Paid Private Firm to Cut Patients’ CHC Funding
A recent investigation by the Telegraph has shown the NHS paid a private company hundreds of thousands of pounds to cut care funding for vulnerable patients.
Continuing Healthcare funding (CHC) is a package of care provided by the NHS to individuals who qualify, but this report shows a private company has saved the NHS money and received a percentage of the savings, as many patients had their CHC funding withdrawn. Some would argue, a clear conflict of interest.
At Farley Dwek, we specialise in helping families to navigating the complex CHC process. This article explores what these developments mean, how decisions are made, and what options are available if funding is withdrawn unfairly.
How the NHS saves money through CHC funding cuts
According to the report, NHS bodies have engaged external consultancy firms, such as Liaison Group, to review existing CHC packages and reassess eligibility. In some cases, this has led to funding being reduced or removed entirely. Crucially, the Telegraph investigation revealed that Liaison Group was paid a percentage of any savings it achieved on the ICB’s behalf, raising serious questions about impartiality and conflict of interest.
While regular reviews of CHC packages are a mandatory part of the system, concerns arise when financial incentives are introduced. If a third-party provider benefits directly from cost savings, there is a risk that decisions may prioritise budgets over clinical need.
For patients and families, the consequences can be severe. Losing CHC funding may mean:
- Increased personal financial burden for care
- Disruption to established care arrangements
- Emotional distress for vulnerable individuals and their families
- Loss of independence and reduced quality of life
- A lengthy appeal process
- Selling assets such as your home to pay for care
Importantly, eligibility for CHC should always be based solely on assessed health needs, not cost-saving targets.
What are ICBs and why are they using third parties?
Integrated Care Boards (ICBs) are NHS organisations responsible for planning and commissioning healthcare services in local areas across England. They oversee CHC assessments and determine whether individuals qualify for funding.
In recent years, some ICBs have turned to private companies to assist with:
- Reviewing existing CHC cases
- Managing backlogs of assessments
- Delivering administrative and consultancy support
While outsourcing may be intended to improve efficiency, it raises questions about transparency and accountability. Particularly where private firms are financially rewarded based on reduced expenditure. The Telegraph state Liaison Group has been used by several ICBs including:
- Dorset ICB
- Nottingham & Nottinghamshire ICB
- Staffordshire & Stoke-on-Trent ICB
Patients and their families may not always be aware that an external organisation is involved in reviewing their care package and reassessing their eligibility, which raises questions about transparency.
According to The Telegraph, when working for Dorset ICB, Liaison Group pocketed 33% of the savings it achieved on the ICB’s behalf. With Dorset ICB claiming back around £414,000 from CHC claimants, Liaison Group was paid around £137,000 of taxpayers’ money.
Privatisation in NHS decision making
The involvement of private companies in CHC assessments reflects a broader trend of outsourcing within the NHS. While private sector support can sometimes ease pressure on overstretched services, the introduction of profit-driven models into healthcare decision-making is highly controversial.
Where financial incentives are linked to reducing care costs, there is a clear risk of conflict of interest. Decisions about essential care funding should remain independent, evidence-based, and focused entirely on clinical need.
Legal professionals and patient advocates have raised concerns that such arrangements could undermine trust in the CHC system. Transparency, proper oversight, and adherence to the National Framework for NHS Continuing Healthcare are essential to ensure fairness.
When can you appeal a CHC decision?
Appeals can be made both when CHC funding is denied after an initial assessment, or when existing funding is withdrawn. CHC appeals may be appropriate where:
- The assessment process was flawed or incomplete
- Relevant evidence was not properly considered
- The decision does not accurately reflect the individual’s care needs
- In the case of a withdrawal of funding, there is no evidence of any significant change in the assessed needs
The appeals process typically involves:
- Local resolution with the ICB
- Independent Review Panel (IRP) consideration
- Potential escalation to the Parliamentary and Health Service Ombudsman
Time limits apply, so it is important to act promptly if you believe a decision is incorrect, especially if you intend to enlist professional support.
At Farley Dwek, we provide both legal and clinical expertise, drawing on the combined experience of our qualified CHC Nurse Assessors and Case Managers, to offer our clients invaluable advice and support. We provide skilled advocacy and evidence-based representation at all stages of the review, assessment and appeals process. Our focus is always on what is best for our clients, not the NHS’s budgets.
Finding Trusted advice for CHC funding
Navigating CHC funding decisions can be complex, particularly when external providers are involved. Seeking expert advice can make a significant difference in ensuring that reviews and assessments are fair and robust, and appeals are properly prepared.
At Farley Dwek, we have extensive experience in:
- Advocating for patients at FNC and CHC reviews, and full assessments
- Challenging CHC eligibility decisions
- Supporting families through appeals
- Securing rightful funding for individuals with complex care needs
If you are concerned about a CHC decision or have recently had funding withdrawn, obtaining specialist legal advice can help you understand your rights and next steps. Contact our team online or call us on 0161 272 5222 for initial advice. For further information on CHC funding, eligibility and the process to secure funding, download our free guide below.
