There has been some appalling waste within the NHS, that is true, and actually I do not disagree with the sentiment expressed by some that governments can be careless with taxpayers money, but that does not equate to "socialism" as a political ideology being at fault, not does it support this particular story being an illustration of that. What this particular story tells us is a lesson about human failing, and greed, and what happens when management/audit is lax. That can happen anywhere, in any institution.
When you look at the millions that have been wasted on failed IT projects ( whose aim -joined up medical records- would actually have been a good thing), or on "external consultants" that successive governments seem only too happy to throw money at, to tell them what they want to hear, to the billions wasted in endless ideologically-driven "re-organisations" from governments of all ideologies, or the millions wasted in the ongoing "PFI" programmes, millions wasted even on homeopathy hospitals/treatments - a redundant and unevidenced therapeutic modality - and the many ,many millions wasted in the tendering process, where services are forced to go out to tender before awarding service provider contracts - these are the scandal.
The PFI initiative in particular, initiated by Major, embraced with enthusiasm by Blair is a perfect example of an ill-thought out programme, designed with the best of motives - to improve and create modern day hospitals and facilities - but with a resultant massively over-inflated on-cost that threatens to beggar many trusts with its repayment programmes.
Never mind the NHS - just look at the railway system in this country. Everyone talks about the advantage that privatisation has brought - modern rolling stock, "investment" into the infrastructure, all of that - but we have had failures of the franchise programme, with private organisations walking away and picking up the cost, and the taxpayers expense. Or how about the determination to re-franchise the East Coast Mainline Services, despite the fact that currently as a state run institution it is turning a profit, returning 500,000K a year to the treasury?
And none of these are a consequence of a "socialist" agenda, as such, but much more to do with successive governments ill- thought out tinkering of existing system. So if you want to talk about waste, talk about issues like these, do not attempt to simply lay the blame at the door of one particular political ideology :)