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TRUSTING GUT INSTINCTS Intuitive insights have proved to be consistently unreliable as a basis for picking profitable investments.
Ministers believe this will increase healthy competition, while critics fear that multinational healthcare businesses will end up cherry picking profitable procedures, leaving the NHS lumbered with the rest.
The bill also now has in place safeguards to stop private providers "cherry picking" profitable, easy cases from the NHS, and we have made sure that private providers can only offer their services where patients say they want them.
Royal Mail had complained competitors were cherry picking profitable areas.
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Adrian Bailey, chair of the business select committee, said: "We have had a number of representations from Royal Mail, and others, warning that TNT can cherry-pick profitable routes because they don't have a universal service obligation.
Royal Mail is worried that rival operator Whistl, formerly known as TNT Post, is able to cherry-pick profitable delivery routes in big cities, while Royal Mail is legally required to provide the same service to all 29m UK addresses.
It blames the way private competition has been allowed to "cherry pick" profitable parts of the postal market and fears more damage will be done in future: "The scale of change planned … is frightening".
The business select committee launched its investigation on Wednesday following pressure from Royal Mail executives who complain that rival operator Whistl, formerly known as TNT Post, is able to cherry-pick profitable delivery routes in big cities while Royal Mail must provide the same service to all 29m addresses in the country as part of its legally binding universal service obligation.
Beyond that, loose ethics controls, shrewd stock picks, profitable land deals, favorable tax laws, inheritances and even marriages to wealthy spouses are all cited as possible explanations for the rising fortunes on Capitol Hill.
Critics predicted that competition would undermine equity by encouraging NHS hospitals to 'cherry-pick' profitable patients and avoid socio-economically disadvantaged patients who are less healthy and more difficult to treat.
If private providers cherry-pick profitable courses, such as law and finance, will this reduce the ability of other institutions to cross-subsidise across discipline boundaries, and in turn threaten their financial sustainability?
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