Concerns hospital PFI deal could scupper merger between two Notts NHS trusts

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QMC and King's Mill Hospital.

Concerns have been raised that a Private Finance Initiative (PFI) deal could scupper a major merger between two Nottingham NHS trusts.

The proposed deal between Sherwood Forest Hospitals NHS Foundation Trust (SFH) and Nottingham University Hospitals NHS Trust (NUH) has been delayed until next year.

Between them, they are responsible for all of Nottinghamshire’s major hospitals.

The Sherwood trust runs King’s Mill Hospital, near Mansfield and Newark Hospital.

Nottingham University Hospitals runs the Queen’s Medical Centre and Nottingham City Hospital.

City and county councillors heard on Tuesday the deal was being held up until 2017 due to legal work, poor A&E performance at the QMC and financial arrangements.

The Sherwood Trust has a £2.5 billion debt from a PFI deal to build King’s Mill Hospital, refurbish Newark Hospital and run some services until 2043.

Meanwhile, the Nottingham trust recorded a year-end deficit of £47.2m in 2015 to 2016.

Both organisations began talking about a merger to stabilise performance back in February.

NUH chief executive Peter Homa and SFH interim head Peter Herring gave a joint presentation at yesterday’s County Hall meeting.

peter_herring
Peter Herring is the seventh person to run SFH Trust in the space of four years.

Nottingham East MP Chris Leslie told the BBC in February the Government should write off the merged trust’s deficit, and Mr Homa said the additional costs associated with SFH’s PFI “will be subject to national support”. Mr Homa reiterated the PFI debt will not be taken on by NUH.

SFH was rated “inadequate” last year by inspectors the Care Quality Commission (CQC). It is currently awaiting the publication of a report on its standards.

Mr Herring said the CQC recognised SFH’s progress during an unannounced inspection in July.

Mr Homa said progress has been made in terms of consistent leadership – after Mr Herring became SFH’s seventh boss in four years in 2015.

But councillor Colleen Harwood, chair of health scrutiny within Nottinghamshire County Council, is worried the reported progress will be undone if the merger cannot go ahead.

“The morale of staff [at King’s Mill] has improved, they feel confident they can look after you whereas before, they seemed to be rushing from one person to the next,” she said.

“Obviously there’s concerns with the PFI, they need to ensure it can be sustainable. It [the merger] all depends on the PFI and what can be done about it.”

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