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30.10.12

South London hospitals could be privatised

Plans have been outlined for South London NHS Trust, including the possibility for two of the hospitals to be privatised.

On Monday morning, special administrator Matthew Kershaw revealed the plans for the failing trust, which was placed into administration three months ago following the accrual of £150m debts. Without action, the trust will accumulate a deficit of over £240m by the end of 2015, Kershaw warned.

The Princess Royal hospital could be offered to a private company, although Kershaw’s “preferred option” was for King’s College hospital trust to take it over instead.

Queen Mary’s hospital should be taken over by mental health foundation trust Oxleas, and the land sold off to pay debts, the report states. The new “health campus” would only provide care for day cases, radiotherapy and endoscopy.

Finally, Queen Elizabeth hospital could be merged with Lewisham Healthcare NHS Trust.

Kershaw has called for the Government to pay the excess costs of PFI deals until the 25-year contracts expire. He said that in the long term, “the current design of services and the economy of the local health system are not safely tenable”.

The services received 39 expressions of interest, including from private companies Virgin Health, Care UK, Serco and Circle. Nine bids have been taken forward for more detailed consideration.

“The trust has the lowest income per consultant in its peer group, a very high ratio of junior doctors to consultant staff and high use of locum and agency staff,” the report warns.

Mike Farrar of the NHS Confederation said the plans were “credible and well thought out”. He added: “South London is a good example of a trust where it would be simplistic to saddle PFI schemes with the blame for all of the problem. To get to the real issues you have to dig deeper.”

Anna Dixon, director of policy at the King’s Fund thinktank, said: “South London Healthcare’s problems are complex and longstanding – the proposed solutions recommend very significant change.

“While the recommendations will undoubtedly be controversial and tough to implement, radical redesign of health services is needed in many parts of the country.”

The proposals are out to public consultation, with Jeremy Hunt, the health secretary, making a decision early in the new year.

Tell us what you think – have your say below, or email us directly at [email protected]

Comments

The Project Manager   31/10/2012 at 13:33

The NHS in many ways is an extraordinary organisation and there's no doubt the UK is very lucky to have it. However, at some point, we can only hope that the Government will address some of the key problem areas: 1) the 'Silo Nature' of NHS Trusts, and the inevitable interdepartmental lack of communication & engagement. 2) The perpetual promotion of clinical staff to management positions, without assessing their skill base or track record in the arena. 3) The endemic assertion that 'Management' is a secondary skill base and that 'just about anyone can learn it' 4) The most ridiclulous fear of Consultant power and the potential impact it can have on a management career. 5) Highly overpaid & too numerous directors & asistant directors (C£90K/Annum ) Weak CEOs who are complacent and just too happy to be appointed (£1~200K/Annum). So who's to blame? Frankly the government needs to put a minister in place for a sustained period, 2 years is not enough and they need someone of Gerry Robinson's calibre. Privatisation is the easy way out, it will lead to huge profit making and little more; what is needed is the engagement of private expertise operating within the trust boards as non-executive directors to ensure proper corporate govenance, this could work. DW

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