NHS warned over competition drive

NHS reforms will open the health service up to more competition. The government must not become a "slave to competition" over the NHS, the ex-head of the health regulator says.

Anna Walker said competition had an important role to play in making the health service more efficient.

But Ms Walker, now head of the Office of Rail Regulation, said ministers had to learn from other sectors - and limit the scope of private involvement.

It came as private health firms hit out at what they said was scaremongering about the changes in England.

Under plans put forward by the coalition government, the NHS is to be opened up further to competition from private sector firms.

This has prompted unions to suggest the health service is at risk of being privatised.

'Complex beast'

Ms Walker, who was chief executive of the Healthcare Commission for five years until stepping down in 2009, said competition had an essential part to play in modernising the NHS.

But she added it had to be carefully managed.

She said having competition, in markets like the NHS where there was a lot of public money at stake, was complex and not as simple as having full-blown competition.

Instead, she said simply comparing performance between different NHS trusts or setting up strictly regulated mini-markets, like the rail franchises, needed to be explored.

"In my experience, competition is a complex beast.