Lord Hunt of Kings Heath – 2014 Parliamentary Question to the Department of Health

The below Parliamentary question was asked by Lord Hunt of Kings Heath on 2014-06-16.

To ask Her Majesty’s Government what is the detailed breakdown of the £7,250,000 so far incurred by the special administration process in relation to Mid Staffordshire NHS Trust.

Earl Howe

The £7,250,000 incurred by the special administration process at Mid Staffordshire NHS Trust relates to the period when the trust special administrators (TSAs) were appointed in April 2013, to the point at which the Secretary of State announced his decision to accept the TSAs’ proposals in February 2014.

We are informed by Monitor that the total figure of £7,250,000 can be broadly broken down as follows:

– Cost of the TSAs and supporting team to run the Trust – £2,000,000;

– Cost of solution development – £3,600,000; and

– Cost of stakeholder engagement and consultation – £1,650,000.

Monitor has estimated the total cost of the special administration process will be £12 to £15 million. This was first announced as part of its decision to accept the TSAs’ final proposals on 16 January 2104 and re-stated in an announcement on 13 March 2014. This includes the £7,250,000 and £250,000 expenses incurred up to the point of the Secretary of State’s decision.

The remainder of the estimated total cost consists of costs incurred in the period leading up to the dissolution of the trust. These are the cost of continuing to employ a team to run the trust, and the cost of implementing the recommendations set out in the TSAs’ Final Report.

We are also informed by Monitor that an original budget for the remaining costs was agreed at approximately £7,000,000.

That total figure of £7,000,000 can be broadly broken down as follows:

– Cost of the TSAs and supporting team to run the Trust – £1,500,000;

– Cost of delivering the transaction – £2,100,000; and

– Cost of splitting the Trust – £3,400,000.

The team running the trust will be required to remain in place up to the point at which the trust is dissolved.