American companies and NHS Mental Health Services.
'...in recent years a small cluster of fatcats have got their claws into Britain’s psychiatric services, exploiting the struggles of the health service to cope with surging demand.
These operators have grabbed nearly £2bn of business, providing almost one quarter of NHS mental health beds and soaking up close to half the total spend on child and adolescent mental health services.
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This means they own many NHS-funded units holding people such as teenage girls who self-harm and adults with suicidal thoughts, along with hundreds of people with autism and learning disabilities scandalously locked up due to lack of support in their local communities.
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These firms benefit as overloaded mental health services and risk-averse officials send more and more troubled citizens into secure units.
It is a lucrative business when it costs up to £730,000 per patient a year. Bosses can pocket millions – but many frontline workers earn little more than minimum wage and the use of agency staff is routine, despite the need to develop patient relationships.
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Acadia, a Tennessee-based health giant, spent £1.3bn buying the Priory Group and now boasts of earning than £188m in just three months from British public services. “Demand for independent sector beds has grown significantly as a result of the NHS reducing its bed capacity and increasing hospitalisation rates,” said its last annual report.
Operating profits at Cygnet, owned by another huge US firm, have surged to £45.2m due to deals with 228 NHS purchasing bodies after it bought a rival group last year. Another outfit called Elysium, backed by private equity through a Luxembourg firm, only launched three years ago, but is already earning revenues of £61.2m from at least 55 units.
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But a study by the Rightful Lives campaign group has found these three firms alone own 13 of the 16 mental health settings judged “inadequate” by the Care Quality Commission watchdog, since it found some teeth after the furore over abusive detention of people with autism and learning disabilities exploded a year ago.
Cygnet runs eight of these “inadequate” units, although its US boss is reportedly the richest chief executive in the hospital industry, who collected more than £39m in one year from pay, bonuses and stock. Priory and Cygnet also owned hospitals exposed by disturbing undercover television documentaries over the past year....'
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