14 December 2010
At its monthly meeting on Friday (10 December), the Board agreed that the Trust is unable to become a foundation trust in its current form and that it needs to explore alternative options.
The decision comes after the new Government restated its commitment to all NHS hospitals becoming foundation trusts (or part of one) and added a deadline for it happening by March 2014.
In addition, all non-foundation trusts are expected to have a plan in place by early 2011 as to how their hospitals will achieve foundation trust status, whether on their own or, for instance, in partnership with other organisations.
Working with local NHS partners, the Trust has spent the last six months assessing if it could become a foundation trust, including how it would affect the organisation's future finances. Importantly, this work has involved a large number of the Trust's doctors, nurses and other staff so that they could help shape the final decision.
Having reviewed the outcome of this work, the Board decided (unanimously) that the Trust is, regrettably, unable to become a foundation trust in its current form.
Samantha Jones, Chief Executive said: "As a Trust, we have moved on significantly over the last few years, continually meeting all of the key healthcare standards the Government sets. In addition, we've balanced our books for the last three years and have put plans in place to spend hundreds of millions of pounds redeveloping both St Helier and Epsom hospitals.
"However, after months of painstaking work, our analysis shows that we are not financially viable in our current form when you forecast the income we can expect to receive from our primary care trusts in the future (and, after them, local GP consortia). As such, we now need to explore alternative options.
"I am conscious that this news will be disappointing and I can't stress enough that the decision is in no way based on our performance over the last few years and all the work we have done to improve the care we provide to patients."
Potential alternative options include:
- St Helier (and Sutton) becoming a foundation trust;
- St Helier (and Sutton) becoming part of another foundation trust;
- St Helier (and Sutton) merging with an NHS partner which is not currently a foundation trust (to become one);
- Epsom becoming a foundation trust;
- Epsom becoming part of another foundation trust;
- Epsom merging with an NHS partner which is not currently a foundation trust (to become one).
Samantha added: "We now need to create a credible plan for our hospitals to achieve foundation trust status, whether on their own or in partnership with others organisations.
"It's important that we agree the final options as quickly as possible, whilst making sure our staff, patients and local people have time to input their views into the process and to help shape what happens next."
A project board will be set up to explore the alternative options. Led by an independent chair, the board will include a range of representatives for different organisations, including NHS London, NHS South East Coast, NHS Sutton and Merton, NHS Surrey and NHS South West London.
Samantha added: "People will of course ask how this decision will impact on our plans to spend millions of pounds redeveloping both Epsom and St Helier hospitals.
"As such, I would like to reassure them that, whatever the final outcome, we are still fully committed to both schemes and, as you will know, they have received significant and continued support both inside and outside the Trust."
What is a foundation trust?
Foundation trusts offer a range of benefits, including being accountable to local people through an elected board of governors (made up of staff, patients and other local residents). They also have greater freedom from Government control, including more power to decide how and where to invest money.
It's not easy to become a foundation trust. You have to meet a significant number of standards to be granted foundation trust status, including be able to prove that you can meet NHS performance standards and that you have all the necessary systems in place to ensure the organisation is well managed.
You must also be able to prove that you are financially sustainable, i.e. that you will be able to balance your books in the future, which involves predicting the demand for the services you provide in years to come.
