Healthcare Environmental Services

Last updated

Healthcare Environment Services (HES) Limited (company number SC173861) was a company based in Shotts. It claimed to be the largest independent medical waste management solutions company in the UK. On 30 April 2019, HES was placed into liquidation

Contents

History

HES was a private limited company, incorporated on 26 March 1997. Its registered office address was Hassockrigg Ecopark, Shotts Road, Shotts, Lanarkshire, ML7 5TQ. Companies House lists two stated "Persons with significant control", Mr Garry Pettigrew (Director and Secretary) and Mrs Alison Pettigrew (Director).

As of the 1st if May, 2019 the companies status on Companies House states that HES are "In Liquidation".

What relationship, if any, exists between HES Ltd, One Waste Solution Limited, HEG Sustainable Solutions Limited, Healthcare Sharp Systems oLimited, Healthcare Environmental (Group) Limited, and Healthcare Washroom Services Limited is unclear, other than the fact that Mr Garry Pettigrew is a named Officer in each.

HES Ltd acquired GW Butler Ltd in 2014 which led to the Competition and Markets Authority (CMA) issuing a formal enforcement order in November 2014. On 18 March 2018 the CMA cleared the completed acquisition. [1]

All the 400 staff at HES were given redundancy notices on 27 December 2018 as a result of the scandal outlined below [2] and the company went into liquidation in April 2019. [3]

Operational Sites

England

The company operated waste management facilities in England:

Scotland

The company operated two [three?] waste management facilities in Scotland:

Contracts

In 2009 the HES Ltd won a 10-year contract to dispose of NHS Scotland's clinical waste, including waste from all the Scottish hospitals, GP's surgeries, dental practices and pharmacies, from the incumbent service provider Stericycle. [4]

Bidding for the next 10 year NHS Scotland contract (NP805/19 Healthcare Waste Services across NHS Scotland), worth an estimated £140 million, opened on 3 June 2018 and closed on 12 September 2018.

In April 2017 HES Limited won a contract to provide clinical waste services to GPs and pharmacies in Cumbria and north-east England, after putting in a substantially cheaper offer, of £310,000, than the incumbent contract holder, Stericycle, which bid £479,999. Stericycle launched a legal challenge against NHS England’s decision which was dismissed in a judgment issued by the Honourable Mr Justice Fraser on 27 July 2018. The judgement severely criticized the behavior of SRCL (Stericycle). [5] [6] [7]

Scandal

A scandal erupted in October 2018 when it emerged that HES Ltd, which had contracts for managing clinical waste produced by the NHS in Scotland and England, was in breach of its environmental permits at four of its six sites in England [reference] for having more waste on site than their permit allowed, and storing waste inappropriately.

HES Ltd have repeatedly stated that the backlog of clinical and healthcare waste, which has led to the compliance issues at their sites, is a direct consequence of reduced available capacity at the incinerators (particularity high-temperature incinerators), as well as the re-classification of clinical waste as "offensive", which has meant more waste NHS trusts now needs to be incinerated. Waste classed as "offensive" waste could simply have been sent to landfill, however the NHS are now classifying this same waste stream as hazardous waste meaning it must now be incinerated. Incinerating more waste helps the NHS comply with the Governments and own aspiration of reducing waste to landfill. There is some support within the industry sector that the reclassification of the "offensive" waste is putting pressure on the incinerators.

As a result of the backlog of waste at HES Ltd sites, and the ongoing enforcement action by the Environment Agency, 17 NHS trusts in Yorkshire terminated their contracts [reference]. HES Ltd was reported as saying it was going to sue the relevant trusts for compensation [8] of "upwards of £15 million" however it is unclear if they have started proceedings. [9] HES Ltd still has contracts with 30 other trusts in England, and a waste disposal contract with NHS England for primary care and pharmacy. [10]

The backlog of clinical waste and issues with HES Ltd, including the possibility of service disruption and the knock-on impact this could have on the NHS, led to the issue being discussed at a meeting of the Cobra national incident committee. [11] As part of an emergency plan the Government handed the contracts to Mitie to ensure a level of continuity in service.

Concern has been raised that the Government is employing double standards after concerns around the way waste was being stored on the site now under the control of Mitie came to light. [12] In particular HES Ltd state that the storage conditions at the Mitie sites is worse than those at their own sites, which resulted in them being subject to enforcement action, which led to the loss of contracts in the first place. However the Government have said that Mitite have had no issue finding the necessary incineration capacity to dispose of the waste, something which HES Ltd said was the principal reason for the backlog developing. HES Ltd have countered this by saying that is because Mitie are paying an excessive fee for that capacity and that "a number of clinical waste contractors have sought to profit from the current situation by increasing their standard tonnage rates". [13] Had they had that money at their disposal, they too could have paid the premium price for the capacity, however they had to work within the agreed rates in the contracts.

In November 2018 the company released minutes of a meeting where Fiona Daly, an NHS Improvement official "acknowledged there appeared to be national market capacity issue". The Environment Agency denies that there is a shortage of suitable incinerator capacity. In addition to enforcement activity to clear the sites, they have launched a criminal investigation. They had issued 13 warning notices and two compliance notices in the last year. The Scottish Environment Protection Agency had also issued enforcement notices in respect of the sites in Dundee and Shotts. [14]

The company transferred 23 workers from its Normanton site to Mitie, under the Transfer of Undertakings (Protection of Employment) Regulations 2006, but Mitie denied that they had been transferred. [15] It emerged that Mitie was charging the 18 trusts in Yorkshire and Humber £10.4 million per year where HES had been charging them £3.3 million. [16]

On 6 December HES stopped collecting clinical waste from many NHS trusts after the company was informed it would lose the Scottish NHS contract, and its banking facilities were cut off. [17] The NHS trusts have had to set up temporary storage measures under the NHS Emergency Preparedness Resilience and Response procedures after having been let down by the company. [18]

A report, based on Environment Agency documents, published in January 2019 said that anatomical waste from NHS hospitals was not stored in fridges as it should have been. The refrigeration unit at Normanton was seen not to be working in July 2018, at which time the site had more than 356 tonnes of waste stored, five times more than was authorised. In February 2018 there were 14 carts full of anatomical waste stored outside the refrigeration unit in Newcastle. [19]

In March 2019 it emerged that there was indeed a shortage of clinical waste incineration capacity and hospitals were asked by NHS England to stockpile clinical waste. The contract with Mitie was estimated to be triple the price previously charged by HES. [20]

A new contract for waste disposal in Scotland was set up with Tradebe Healthcare National, a Spanish company, to start in August 2019. [21]

The Normanton site was taken over by Sharpsmart in 2019. They discovered 400 tonnes of clinical waste, including some marked radioactive in a bin dated June 2017. [22]

Environmental Compliance

In order to operate their waste management facilities, the company must obtain and comply with the relevant environmental authorizations, from the relevant regulator. In England it is the Environment Agency (EA), and in Scotland it is the Scottish Environment Protection Agency (SEPA).

Inspection reports, and reports submitted in compliance with the conditions of the authorizations, are held on a public register.

Scotland

Source Data: SEPA Compliance
Compliance Rating***
SiteAuthorisation Number20102011201220132014201520162017
HES Ltd, Calderhead Road, Shotts*PPC/A/1019535PoorPoorVery PoorVery PoorPoorBroadly CompliantExcellent**N/A
HES Ltd, Hassockrigg, Shotts Road, ShottsPPC/A/1111773N/AN/AN/AN/AN/AN/AExcellentGood
HES Ltd, DundeePPC/A/1033633PoorPoorPoorPoorVery PoorBroadly CompliantBroadly CompliantGood

*Operations at the Calderhead Road site ceased early 2016 and moved to the custom built site at Hassockrigg, Shotts Road.

**The rating of Excellent is misleading as the site ceased operating at this particular site as early as February 2016.

*** The number of inspections on which each compliance rating is made is highly variable.

England

[Data on compliance at sites regulated by EA?]

SiteAuthorization Number
HES Ltd, North Tyne, Newcastle upon Tyne EPR/LP3936AB
HES Ltd, Normanton

Awards

Related Research Articles

<span class="mw-page-title-main">Incineration</span> Waste treatment process

Incineration is a waste treatment process that involves the combustion of substances contained in waste materials. Industrial plants for waste incineration are commonly referred to as waste-to-energy facilities. Incineration and other high-temperature waste treatment systems are described as "thermal treatment". Incineration of waste materials converts the waste into ash, flue gas and heat. The ash is mostly formed by the inorganic constituents of the waste and may take the form of solid lumps or particulates carried by the flue gas. The flue gases must be cleaned of gaseous and particulate pollutants before they are dispersed into the atmosphere. In some cases, the heat that is generated by incineration can be used to generate electric power.

Cambridge University Hospitals NHS Foundation Trust is a British public sector healthcare provider located in Cambridge, England. It was established on 4 November 1992 as Addenbrooke's National Health Service Trust, and authorised as an NHS foundation trust under its current name on 1 July 2004.

Mitie Group PLC is a British strategic outsourcing and energy services company. It provides infrastructure consultancy, facilities management, property management, energy and healthcare services. It has a head office at The Shard in London and more than 200 smaller offices throughout the United Kingdom and Ireland. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">University Hospitals Birmingham NHS Foundation Trust</span> NHS hospital trust

The University Hospitals Birmingham NHS Foundation Trust provides adult district general hospital services for Birmingham as well as specialist treatments for the West Midlands.

<span class="mw-page-title-main">East of England Ambulance Service</span> Ambulance service in England

The East of England Ambulance Service NHS Trust (EEAST) is an NHS trust responsible for providing National Health Service (NHS) ambulance services in the counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk, in the East of England region. These consist of approximately 6.2 million people across an area of 7,500 square miles (19,000 km2).

<span class="mw-page-title-main">Sheffield Energy Recovery Facility</span>

The Sheffield Energy Recovery Facility, also known as the Energy from Waste Plant, is a modern incinerator which treats Sheffield's household waste. It is notable as it not only provides electricity from the combustion of waste but also supplies heat to a local district heating scheme, making it one of the most advanced, energy efficient incineration plants in the UK. In 2004, the district heating network prevented 15,108 tonnes of CO2 from being released from buildings across the city, compared to energy derived from fossil fuels. The incinerator is a 'static asset' owned by Sheffield City Council and operated by Veolia Environmental Services under a 35 year integrated waste management contract (IWMC)/PFI contract.

<span class="mw-page-title-main">North West Boroughs Healthcare NHS Foundation Trust</span> NHS mental health trust

North West Boroughs Healthcare NHS Foundation Trust was an NHS foundation trust which provided mental health, learning disability and community health services in fifteen boroughs of North West England. The Trust delivered mental health and learning disability services in Halton, Knowsley, St Helens, Warrington and Wigan, as well as community-based physical health services in Halton, Knowsley, St Helens and Sefton. It also provided services to improve outcomes for people with mental vulnerabilities within the criminal justice system across Greater Manchester, working in partnership with Mitie Care and Custody and Cheshire and Greater Manchester Community Rehabilitation Company.

<span class="mw-page-title-main">NHS Supply Chain</span>

NHS Supply Chain supports the National Health Service (NHS) in England, and other healthcare organisations in England and Wales, by providing procurement and logistics services.

<span class="mw-page-title-main">Emergency medical services in the United Kingdom</span>

Emergency medical services in the United Kingdom provide emergency care to people with acute illness or injury and are predominantly provided free at the point of use by the four National Health Services (NHS) of England, Scotland, Wales, and Northern Ireland. Emergency care including ambulance and emergency department treatment is only free to UK residents and a charge may be made to those not entitled to free NHS care.

<span class="mw-page-title-main">Healthcare in the United Kingdom</span> Overview of healthcare in the United Kingdom

Healthcare in the United Kingdom is a devolved matter, with England, Northern Ireland, Scotland and Wales each having their own systems of publicly funded healthcare, funded by and accountable to separate governments and parliaments, together with smaller private sector and voluntary provision. As a result of each country having different policies and priorities, a variety of differences have developed between these systems since devolution.

Imperial College Healthcare NHS Trust is an NHS trust based in London, England. It is one of the largest NHS trusts in England and together with Imperial College London forms an academic health science centre.

<span class="mw-page-title-main">Biomedical waste</span> Waste containing infectious material

Biomedical waste or hospital waste is any kind of waste containing infectious materials generated during the treatment of humans or animals as well as during research involving biologics. It may also include waste associated with the generation of biomedical waste that visually appears to be of medical or laboratory origin, as well research laboratory waste containing biomolecules or organisms that are mainly restricted from environmental release. As detailed below, discarded sharps are considered biomedical waste whether they are contaminated or not, due to the possibility of being contaminated with blood and their propensity to cause injury when not properly contained and disposed. Biomedical waste is a type of biowaste.

<span class="mw-page-title-main">Stericycle</span> American waste management company

Stericycle is a compliance company that specializes in collecting and disposing regulated medical waste, such as medical waste and sharps, pharmaceuticals, hazardous waste, and providing services for recalled and expired goods. It also provides related education and training services, and patient communication services. The company was founded in 1989 and is headquartered in Bannockburn, Illinois, with many more bases of operation around the world, including Medical waste incinerators in Utah and North Carolina.

<span class="mw-page-title-main">Hinchingbrooke Hospital</span> Hospital in England

Hinchingbrooke Hospital is a small district general hospital in Hinchingbrooke near Huntingdon, Cambridgeshire. Opened in 1983, it serves the Huntingdonshire area, and has a range of specialities as well as an emergency department and a maternity unit. The hospital is managed by the North West Anglia NHS Foundation Trust.

Circle Health Group is a private healthcare provider in the United Kingdom, and is the country's biggest private hospital provider. The company was founded in 2004 and rebranded as Circle Health Group in 2019 after acquiring a rival, BMI Healthcare; in the same year it began an expansion in China. In 2023 the company was acquired by the Abu Dhabi-based holding company PureHealth.

NHS Property Services Limited is a company owned by the Department of Health and Social Care in the United Kingdom that took over the ownership of around 3,600 National Health Service (NHS) facilities in April 2013.

Out-of-hours services are the arrangements to provide access to healthcare at times when General Practitioner surgeries are closed; in the United Kingdom this is normally between 6.30pm and 8am, at weekends, at Bank Holidays and sometimes if the practice is closed for educational sessions.

Healthcare in Sussex was the responsibility of seven Clinical Commissioning Groups covering: Brighton and Hove; Coastal West Sussex; Horsham and Mid Sussex; Crawley; Eastbourne Hailsham and Seaford; Hastings and Rother; High Weald; and Lewes-Havens from 2013 to 2020. From April 2020 they were merged into three covering East Sussex, West Sussex, and Brighton and Hove. In 2021 the three Sussex CCGs were merged into one, Sussex CCG. In 2022 Sussex CCG transitioned into an Integrated Care Board or ICB.

In Practice Systems Limited (INPS) is a health informatics company, part of the Cegedim group and based in the United Kingdom.

Tradebe is a waste management company based in Barcelona that was established in 1980. It operates in Spain, France, the United Kingdom, the United States and Oman. The chairman is Josep Creixell, and the Chief Executive is Victor Creixell.

References

  1. ↑ "The CMA investigated the completed acquisition by Healthcare Environmental Services Limited of G.W. Butler Limited".
  2. ↑ "HES staff appeal to employer for lost wages". BBC. 9 January 2019. Retrieved 11 January 2019.
  3. ↑ "Clinical waste stockpiling company put into liquidation". Health Service Journal. 26 April 2019. Retrieved 9 June 2019.
  4. ↑ "NHS waste: Healthcare Environmental Services' future in doubt". BBC News. 7 December 2018. Retrieved 10 December 2018.
  5. ↑ "Stericycle sought to 'hurt NHS England'". Materials Recycling World. 31 July 2018. Retrieved 13 November 2018.
  6. ↑ "HTML Version of Judgement".
  7. ↑ "Letsrecycle".
  8. ↑ "NHS waste firm to sue health trusts over terminated contracts". BBC. 7 November 2018. Retrieved 13 November 2018.
  9. ↑ "Clinical Waste Firm To Sue Health Trusts Over Terminated Contracts". Chartered Institution of Wastes Management. 8 November 2018. Retrieved 13 November 2018.
  10. ↑ "Officials admitted clinical waste incineration shortage". Health Service Journal. 12 October 2018. Retrieved 13 November 2018.
  11. ↑ "Human body parts and organs among tonnes of medical waste stockpiled by NHS contractor" . Independent. 4 October 2018. Archived from the original on 9 May 2022. Retrieved 14 November 2018.
  12. ↑ "Toxic timebomb fears as medical waste stored in hospital car parks after Scots firm stripped of contracts". Daily Record. 17 October 2018. Retrieved 13 November 2018.
  13. ↑ "Clinical waste driven hundreds of miles south amid disposal row". Health Service Journal. 22 October 2018. Retrieved 29 November 2018.
  14. ↑ "Controversial Scottish clinical waste firm in body parts row sues NHS trusts for £15million". Daily Record. 8 November 2018. Retrieved 13 November 2018.
  15. ↑ "Clinical waste incineration capacity row deepens". Materials Recycling World. 12 November 2018. Retrieved 13 November 2018.
  16. ↑ "Trusts' costs triple amid clinical waste crisis". Health Service Journal. 3 December 2018. Retrieved 4 December 2018.
  17. ↑ "NHS waste: Healthcare Environmental Services' future in doubt". BBC News. 7 December 2018. Retrieved 10 December 2018.
  18. ↑ "Exclusive: Major incident as hospital waste collections halted". Heralth Service Journal. 10 December 2018. Retrieved 10 December 2018.
  19. ↑ "Exclusive: Patients' body parts were stored dangerously for six months". Health Service Journal. 16 January 2019. Retrieved 18 February 2019.
  20. ↑ "Exclusive: Clinical waste building up outside hospitals". Health Service Journal. 4 April 2019. Retrieved 21 April 2019.
  21. ↑ "Waste collection costs double after firm's collapse". BBC. 6 May 2019. Retrieved 10 May 2019.
  22. ↑ "Regulator acts after potential 'risk to human health' at warehouse". Health Service Journal. 28 November 2019. Retrieved 11 January 2020.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.