www.dailymail.co.uk/health/article-21724...-spiral-control.html
South London Healthcare becomes first NHS Trust EVER to go into administration as debts spiral out of control
Health Secretary says the ground-breaking decision is in the interest of patients
Trust is struggling to pay off Labour-agreed PFI deals costing £61m a year in interest (note: the so-called 'coalition' government have extended PFI)
An NHS hospital trust losing £1m a week has been put into administration to try and stop it collapsing, the Department of Health said today.
Health Secretary Andrew Lansley has appointed a trust special administrator to try and turn around the struggling South London Healthcare NHS Trust.
Queen Elizabeth hospital in Woolwich is one of three that makes up the South London Healthcare Trust.
Mr Lansley said: 'I have decided it is in the interests of the health service and, in particular, of the patients the trust serves.'
The Trust has been put on an 'unsustainable providers regime' and the government has appointed Matthew Kershaw with the task of putting it back on a 'viable footing.'
Mr Kershaw currently works as the national director for provider delivery at the Department of Health. He will take over the Trust's board on Monday July 16 and recommend measures to Mr Lansley at the start of next year.
The chairs and directors have been informed that they have been suspended from board duties.
It is the first time in NHS history that a trust has been forced to hand over its administration powers to the Department of Health after failing to meet prescribed standards.
The Trust was only created in 2009 after the merger of three hospitals - the Princess Royal in Orpington, Queen Mary's in Sidcup and the Queen Elizabeth in Woolwich.
Yet it has gone £150m in the red over the past three years largely because of crippling Private Finance Initiative deals agreed by the last Labour government. The two PFI deals are now costing £61million a year in interest.
Last year's deficit, paid off by money from elsewhere in the NHS budget, could have paid for 1,200 nurses or 200 hip replacements a week.
The Health Secretary stepped in after draft financial plans showed the trust would have a deficit of £30-£75million a year for the next five years, despite efforts to tackle the situation.
Today he said: 'Past efforts have not succeeded in putting the South London Healthcare Trust on a sustainable path.
'This will be a big challenge and my key objective for all NHS Trusts is to ensure they deliver high-quality services to patients that are clinically and financially sustainable for the long term.
'The purpose of the trust special administrator is to ensure that services are high quality and to ensure a lasting clinical and financial solution.
'Although there have been some improvements in mortality rates, maternity services and infection control, and some early signs of improvements in waiting times, they do not go far enough. It will be impossible for South London to build on these improvements while tackling such a large deficit.
'Matthew, working with clinicians, all other staff, commissioners, patients, the public and other stakeholders, must now drive the changes and shape a sustainable solution for South London Healthcare NHS Trust and the local health economy.
'I am confident that with the regime I am enacting today in place, and working extensively with clinicians, health service leaders, patients and local people, Matthew will have the tools and framework in place to find a long-term satisfactory solution for the people of south east London.'
Mr Kershaw will first publish a report on October 29 after examining the Trust's long-standing difficulties. He will then launch a 30-day consultation with staff, patients and public on a draft report. A final report will be sent to Mr Lansley on January 8, 2013.
Mr Kershaw said: 'My priority is to work with staff, patients, the public and all those involved in healthcare services in the south east London area to maintain high quality, effective services during the running of the Unsustainable Provider Regime.
'This means developing recommendations that ensure that people in south east London can access high quality, safe, and financially sustainable NHS services for the long-term.
'Together we will need to think differently, be bold and accept that change needs to happen. The status quo is not sustainable.'
A spokesman for the Royal College of Nursing, said: 'This announcement is an unprecedented step by the Secretary of State and moves the NHS into unchartered waters.
'It presents a worrying state of affairs for both patients and staff at the Trust, who will be undoubtedly concerned by today’s decision.
'We know that the Trust has been in financial difficulties for some time. However, despite this, frontline staff have continued to do their best for patients, providing a high level of care.'
Problem: the NHS is falling apart. Reaction: oh, this is terrible, we all value the NHS, we don't want a US-style health care system. Solution: oh, well, if you feel that strongly about it we could privatise some of the NHS services, just so they're run more efficiently, you understand.
You can read more about PFI here:
en.wikipedia.org/wiki/Private_finance_initiative
The private finance initiative (PFI) is a way of creating "public–private partnerships" (PPPs) by funding public infrastructure projects with private capital. Developed initially by the Australian and United Kingdom governments, PFI and its variants have now been adopted in many countries as part of the wider neo-liberal programme of privatisation and financialisation driven by an increased need for accountability and efficiency for public spending, national governments, and international bodies such as the World Trade Organization, International Monetary Fund, and World Bank. PFI has been controversial in the UK; the National Audit Office felt that it provided good value for money overall.
