Agenda item

The Committee was provided with an update on the transaction and future arrangements for Pennine Acute Trust (PAT) hospitals.

The key messages highlighted to the Committee were that:

·         the Trust was now technically ready to deliver the safe disaggregation (i.e. separation) of PAT sites and services on 1^st April 2021 as planned;

·         from 1^st April, Manchester University NHS Foundation Trust (MFT) would formally acquire and be responsible for North Manchester General Hospital (NMGH). The Northern Care Alliance (NCA) would continue to deliver some services on that site or jointly through a Service Level Agreement;

·         due to the pandemic and the complexity of the NCA’s part of the PAT transaction, NCA had asked for an extension by up to six months to formally complete their part of the legal transaction; and 

·         a two phased approach would therefore be enacted to complete the PAT Transaction and the final dissolution of PAT by no later than the end of September 2021.

Members were reminded that the NCA Group had made significant improvements across PAT services over the past five years, supported by a transaction programme preparing for the formal change in ownership of the Oldham, Rochdale and Bury hospital sites to Salford Royal NHS Foundation Trust to form the NCA: the transaction also involved the formal change in ownership of the NMGH to MFT.  Enormous effort had been invested into understanding and planning how to safely disaggregate PAT and its services, including work with NHS England/Improvement and MFT and with engagement and input from staff and clinical teams.  The process would be concluded in the timescales as outlined above, subject to approval by regulators and the Secretary of State for Health.

The NCA Group would progress with plans to recover from the pandemic and in continuing to develop new ways of working, mobilising services across the NCA, and integrating services and care within the localities across the NCA area.  Staff and patients would benefit from investments and developments being made across NCA sites, including at the Royal Oldham Hospital, a continued focus on research and innovation, and the progression of the Digital Control Centre.

The financial position of the Trust was queried, given the deficit position that had existed for a period of time. Clarification was also sought as to the treatment of the balance outstanding on liabilities, how these would be applied to the NCA and MFT, and how they would be addressed going forward.  The historic PAT debt was acknowledged and the Committee advised that the transaction included a medium term financial plan to see delivery of a programme of improvements to productivity while achieving 4% efficiency savings to get the NCA into a sustainable, breakeven position.  It was confirmed that capital improvements at NMGH from 1^st April 2021 would be the responsibility of the MFT.

The implications of the six month delay on staffing vacancies and capital works was queried.  Members were advised that a business as usual approach was being adopted, with all necessary posts being filled and the capital programme continuing.  Capital resourcing going forward into 2020/21 across Greater Manchester was a challenge, as aspirations exceeded available resources.

Disappointment was expressed at the reported delay in the transaction but the greater complexity of the NCA process over the transfer of the NMGH was noted.  It was suggested that caution needed to be exercised to ensure that the delay did not cause issues with the capital rebuilding proposals or risk the watering down of Oldham based services.  That disappointment was shared by Members, but the great strides made to date by the NCA and by staff at the Royal Oldham Hospital were noted, and the thanks of the Committee for the work of staff members in support of the improvements made were noted.

The Committee considered the timing of any future update, it being suggested that the Committee consider the transaction programme as a standing item for six months to keep focus on how services were configured and delivery of the Healthier Together programme to ensure services remined on site.

RESOLVED that

1.            the report be noted

2.            the Pennine Acute Transaction remain a standing item on the Committee agenda for the next six months.