There is a need for public discussion on NHS trusts using SubCos
Thursday, 26th April 2018

• THE union, Unison, obtained through a Freedom of Information request, the fact that the Royal Free London Trust has spent £400,000 or more on consultants with a plan to set up a private subsidiary company.
This must be because the financial squeeze has forced NHS trusts across the country (a number have already done so elsewhere) to save money through such subsidiary companies (SubCos).
SubCos are private legal entities separate from the NHS but still owned by the trust. They can exploit a VAT loophole, run in-house services with staff on less pay and conditions, and use so-called commercial expertise to help the rapid sale of NHS land and property.
It is the latter that is probably the most dangerous aspect given that we need a strategy for the use of NHS land and property over the next 20 to 25 years, particularly as we know that there is no strategy at all for the future use for primary care.
A strategy should be in existence before any sales are considered. The Royal Free is a trust that has enormous influence across the health economy in North Central London through its partner hospitals including Barnet General, Chase Farm and the North Middlesex.
Why have staff and the public not been consulted or even told anything about these plans that have cost so much already?
I am sure the staff and the public would have a lot to say if they knew the purpose was to avoid tax, use less and cheaper staff, and sell off valuable public land and assets without necessary planning.
We should expect the NHS leadership, both at the Royal Free and for North Central London to discuss this issue publicly with both the staff and the public.
JOHN LIPETZ
Parliament Hill, NW3