Ambulance
Winter2016
Winter2016
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Focus on Independent <strong>Ambulance</strong> Provision<br />
The<br />
Coperforma<br />
Lesson:<br />
Below, Joe Sheehan, former MD of Medical Services Ltd (now part of Falck UK), discusses<br />
the importance of the psychological contract that should exist between employers and staff<br />
responsible for the delivery of Patient Transport Services, arguing that the Coperforma<br />
business model operated in Sussex, which failed so spectacularly earlier this year, could have<br />
been avoided if this vital element of service delivery was not omitted<br />
The recent news that NHS Commissioners<br />
in Sussex and Coperforma had agreed<br />
to discontinue with the patient transport<br />
contract has been unsurprising given the<br />
circumstances.<br />
Opinions differ about managed-servicesprovider<br />
contracts and the relative<br />
advantages or disadvantages over a directlyoperated<br />
service. Certainly, the top team<br />
at Coperforma, who I am sure honestly<br />
believed the new model of service was<br />
operable and genuinely aspired to deliver a<br />
quality patient transport service might have<br />
a different viewpoint to mine.<br />
As often happens to pioneers, once you<br />
have a first chance to fully test your new<br />
concept you are just as likely to end up<br />
going back to the drawing board and<br />
coming back later with something better.<br />
I am not arguing that all the component<br />
parts of the Coperforma managed-service<br />
offering are unworkable - but I certainly<br />
believe the strategy toward the staff<br />
delivering the service is structurally flawed,<br />
which is why I maintain that, without the<br />
patient-transport staff’s full support and<br />
emotional commitment, the contract would<br />
never have performed to the required level<br />
anyway.<br />
We are seeing a number of variances of this<br />
new type of organisational model (Uber,<br />
Deliveroo etc…) whereby technology<br />
appears to have the ability to move workers<br />
away from an obligated or responsible<br />
employer (either by degrees of separation<br />
or completely) to affect a risk and a liability<br />
transfer. Both Uber and Coperforma are<br />
using advanced algorithmic transport<br />
management software at the centre of their<br />
business model.<br />
But there is a choice here: patient-transport<br />
providers have the option of deploying this<br />
new technology and choosing to maintain a<br />
Winter 2016 | <strong>Ambulance</strong>today<br />
committed direct workforce as a matter of<br />
business strategy.<br />
On one level, the business strategy of<br />
Coperforma is that they would enjoy some<br />
of the profits for providing software and<br />
some contract-management to the service.<br />
Any subcontractors could also enjoy some<br />
of the profits, but do so by shouldering<br />
nearly all of the risk of employer obligations<br />
to staff as well as the significant vehicle<br />
investment liabilities and attendant contract<br />
running costs.<br />
At least one consequence of a servicedelivery-model<br />
which outsources<br />
workers and divorces the obligations and<br />
responsibilities of organisations for those<br />
workers is that you cannot really expect<br />
the same men and women to have shared<br />
ownership of the problem when the service<br />
runs into operational difficulties.<br />
In this case, the patient-transport staff who<br />
had been comfortably employed inside<br />
the NHS found themselves distanced<br />
by the Tupe transfer process and two<br />
tiers removed from their preferred NHS<br />
employment status. They did not transfer<br />
to Coperforma along with the award<br />
of the new contract, but were “doubleoutsourced”<br />
and parked with third-party<br />
subcontractors. The legal framework is I<br />
suppose, arguably correct but that’s not<br />
my point. My view is that the psychological<br />
contract between the provider of the<br />
patient transport service and the staff<br />
employed to deliver the service was clearly<br />
broken.<br />
I doubt Uber taxi drivers feel any (intrinsic)<br />
emotional reward on top of the cash fare<br />
(an extrinsic reward) the passenger pays. In<br />
sharp contrast to taxi drivers many patient<br />
transport staff choose the job because they<br />
see themselves as part of a socially valuable<br />
service and have an emotional commitment<br />
as well, which is expressed in the quality of<br />
patient care they provide.<br />
I have managed the process of ambulance<br />
staff transferring into the independent sector<br />
in the past. In all instances the transferring<br />
staff worked directly for the new service<br />
provider; and I am not sharing any secrets<br />
when I say that this was challenging. Some<br />
transferring staff needed to see genuine<br />
commitment from the new employer over a<br />
long period before the kind of relationships<br />
were built that support high-performing<br />
teams. It works in the other direction as well:<br />
a year or so ago in Shropshire, a number<br />
of patient transport staff transferred across<br />
on zero-hours contracts from the previous<br />
independent sector provider and were<br />
immediately offered permanent full-time<br />
employment contracts. Consequently,<br />
relationships, emotional commitment and<br />
better performance outcomes were built<br />
more quickly.<br />
When the TV news showed patient<br />
transport staff involved in industrial action,<br />
it was Coperforma and the CCG the<br />
staff were angry with, not the unheard-<br />
Biography:<br />
Joe Sheehan<br />
With back to back, build and sell<br />
successes, most notably as Managing<br />
Director of Medical Services Ltd,<br />
Joe Sheehan is a results-orientated<br />
strategic thinker and a motivated<br />
management professional with<br />
over thirty years’ experience in<br />
the transport management, logistics and healthcare<br />
transport industries.<br />
With a strong operational focus Joe built a successful<br />
career in express logistics and control centre<br />
management. He was part of the entrepreneurial team<br />
behind LDT PLC, which was acquired by Addison Lee<br />
in 2011. Subsequently, he developed and led Medical<br />
Services Ltd into the UK’s largest independent sector<br />
ambulance service, delivering over a million patient<br />
journeys a year for the NHS until sold to a global<br />
healthcare brand in 2014. Joe is currently undertaking<br />
an MBA at the the University of Kent and retains a<br />
strong interest in the development of UK and global<br />
ambulance delivery.<br />
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