The Health Secretary, Andrew Lansley, has announced that the South London Healthcare NHS Trust has been placed into administration after accruing deficits of more than £150 million over the last four years.
The South London Healthcare NHS Trust was formed in 2009 when three NHS Trusts merged; and despite recent cost-cutting measures, it still posted a £40 million deficit in 2010 / 2011; and has now became the first NHS Trust to be placed into administration.
Announcing the decision, Mr Lansley said: “Past efforts have not succeeded in putting the South London Healthcare Trust on a sustainable path.
“I have decided it is in the interests of the health service and, in particular, of the patients the trust serves. 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.”
He added: “The purpose of the trust special administrator is to ensure that services are high quality and to ensure a lasting clinical and financial solution.”
The national director for provider delivery at the Department of Health has now been appointed as special administrator and he will examine the long-standing difficulties at the Trust, before publishing a report later in the year – with a final report being submitted to the Health Secretary early next year.
For those who work within the healthcare profession and are concerned about their finances, or who wish to discuss financial planning for the future, as independent advisers, the team at Milsted Langdon can assist.
As an accountant; David Jacobs offers a range of accounting, audit and taxation advice to the legal and medical professions.