Disadvantages of Private sector Flashcards
Private welfare may suffer from a lack of control and regulation
Private welfare organisations may not be subject to the same levels of inspection and scrutiny as state welfare services, for example, they may be able to employ unqualified staff. Private welfare lack proper regulation of its services as this care may not be subject to the same inspections as state run services. Workers in private care homes may provide poor quality care if they lack training and skills and fail to provide the high level of care that would come from a more regulated state service.
For example, in 2012 Winterbourne View private hospital, owned by Castlebeck Care Ltd, was closed down for employing unqualified staff and failing to provide appropriate care to adults with special needs. Moreover, private welfare may lack accountability as may not need to follow government guidelines on care.
Pursuit of profits by private welfare organisations may lead to cuts in the quality of service
If private welfare can save money on costs it will lead to greater profits, but this may result in a poor service. For example, the company Capita is responsible for supporting GP practices in London, but its cost saving measures in 2016 resulted in shortages of vital supplies and doctors having to cancel appointments.
Moreover, private welfare is only available to those with the money to afford the service; this results in a two-tier system of welfare, with the poor having to rely on charity or poorer state provision.
Private welfare services will also end if the business closes down. This could have severe consequences for those using private care The collapse of Southern Cross Healthcare, which ran 750 residential homes, is also set to cost the NHS an extra £3billion a year, as residents are forced move to state welfare.
