Healthcare-related Social Enterprises Need Support: King's Fund Report

A report released by The King's Fund, a leading UK thinktank and health charity, says that social enterprises working in the area of healthcare services require stronger support in order to make them more viable and effective service providers. The report suggests that substantive financial, operational and legal measures are necessary to create a vibrant social enterprise sector in healthcare.

The report recommends that as a part of social innovation efforts in healthcare, long-term contracts must be offered to social entrepreneurs in this field. This will allow them to perform and compete in an increasingly challenging and competitive healthcare market. The social entrepreneurship model of these enterprises will be able to unlock its full benefits such as improved decision-making and reduced bureaucracy when there is support on challenges such as human resource management.    

Dr Rachael Addicott, author of the report and a senior research fellow at the thinktank says, "Even at this early stage in the development of the social enterprise sector, it is apparent that patients and taxpayers could really benefit."

However, the reports points out the key challenges ahead for this sector. The findings of the report reveal that despite the government's claims and commitment to establish widespread social entrepreneurship companies in the sector, the number of trained and experienced healthcare personnel joining these social enterprises is not matching with this vision.

A lot of work still remains to be done by the healthcare commissioners, the government and other socially responsible companies to promote the aspiring social enterprises and transform the vision of a highly successful social enterprise healthcare sector into a reality.

Stephen Bubb, chair of the Social Investment Business and chief executive of the Association of Chief Executives of Voluntary Organisations, agrees with the issues brought out in the King's Fund report. He remarks: 'The report is right to highlight the need for more business and financial support for social enterprises as vital to enable the sector to grow.'

'Social enterprises, especially new ones, face lots of challenges in the NHS tender process, not least a lack of experience of the process itself rather than the ability to deliver a service. Experience tells us that once they win contracts, the finance from those deals can help them fund their operations, reduce reliance on grants and, most critically, allow them to deliver value for money for the health service.'

Photo Credit: Leonardini