South London Healthcare NHS Trust

Health written question – answered on 13th December 2012.

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Photo of Jim Dowd Jim Dowd Labour, Lewisham West and Penge

To ask the Secretary of State for Health

(1) what the cost to the trust special administrator for South London Healthcare (a) is to date and (b) will be upon completion of his work;

(2) what consultants and outside contractors are supporting the work of trust special administrators; on which strands of work such consultants and outside contractors are engaged; and how much such consultants and outside contractors have cost to date.

Photo of Anna Soubry Anna Soubry The Parliamentary Under-Secretary of State for Health

Expenditure for this administration is expected to be small compared to the cost savings and service quality improvements that are expected to follow in the future. At the time this administration was enacted in July, South London Healthcare NHS Trust (SLHT) was spending around £1 million per week more than it had. This means that vital resources are being diverted away from other parts of the national health service. The size of the financial challenge is significant. In 2011-12, SLHT incurred the largest financial deficit across all NHS providers nationally, at over £65 million. Since its formation in 2009, the trust has generated a total financial deficit of £154 million and is forecast to have an accumulated deficit of £207 million by the end of March 2013.

To date, the budget that has been agreed by the Department for the Trust Special Administrator (TSA) to operate the unsustainable NHS providers regime at SLHT is £4 million. An additional £1 million has recently been agreed. The total budget comprises:

£1 million paid to fund the office of the TSA, including personnel to support the TSA on communications and engagement, strategy and clinical leadership;

£3 million for consultancy spend, of which £2 million has been paid to McKinsey as lead-contractor, with Deloitte and PA Consulting Group as sub-contractors. They are engaged in detailed strategic, financial and programme management support work for the TSA; and

£1 million set aside for contingency purposes.

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