South London Healthcare NHS Trust May Be Put into Special Administration
South London Healthcare NHS Trust has been losing £1m a week, putting at least 30 NHS trusts at risk of facing a special administration.
The Department of Health has bared 21 hospitals that are considered “clinically and financially unsustainable,” which need to be restructured.
Ealing Hospitals Trust, North Cumbria University Hospital Trust and Surrey, Queen Mary’s Hospital in Sidcup, the Queen Elizabeth Hospital in Woolwich, the Princess Royal University Hospital in Bromley and Sussex Healthcare Trust, are a few of those facing threats of bankruptcy after the Trust took on ventures criticized by the ministers for being “unsustainable.”
South London Healthcare NHS Trust will be the first in the country to call in special administrator. The Trust is thought to be losing between £30 and £75 million a year for the next five years.
Commenting on the announcement that the South London Healthcare NHS Trust may be put into special administration, Richard Fleming, UK Head of Restructuring at KPMG, said:
“In the private sector, an administration is an important mechanism for making tough decisions to address a severely financially distressed company’s problems. We expect this to be true of health special administrations as well, where the regime seeks to safeguard patient care as a priority but also allows the special administrator to address the most difficult financial challenges.
“The success of NHS turnaround is mixed, not helped with proposals to reconfigure services sometimes taking years of consultation. In the banking sector, the special resolution regime has worked to minimise disruption to customers, whilst enabling a restructuring and return to stability; as in the case of Dunfermline Building Society.
“Rather than have their plans left in limbo, the ability to accelerate consultation on service change should help trusts in financial distress to make their service delivery and patient care more sustainable, more quickly.”