NHS: Subsidiary Companies: Written question – 132936

Question: Asked by Karen Lee (Lincoln)

Asked on: 15 March 2018

Department of Health and Social Care

NHS: Subsidiary Companies

132936

To ask the Secretary of State for Health and Social Care, what assessment his Department has made of the effect of wholly owned subsidiary companies in the NHS on

(a) joined-up care and

(b) staff

(i) coordination,

(ii) retention and

(iii) morale.

Answered by: Stephen Barclay

Answered on: 23 March 2018

It is for National Health Service organisations locally to assess the effect of establishing wholly owned subsidiaries. The aim of organisations who have established wholly owned subsidiaries is to support the efficient and effective delivery of healthcare locally while providing value for the taxpayer. In doing so, these organisations would have to engage fully with existing staff transferring to the wholly owned subsidiary, protecting their terms and conditions of service as well as ensuring that any newly recruited staff are offered terms and conditions that attract the skills they need, promote retention and improve morale. The legislation enabling wholly owned subsidiaries companies in the NHS was first passed in 2003 through the Health and Social Care (Community Health and Standards) Act 2003, which came into force on April 1 2004. That power was re-enacted into s46 of the NHS Act 2006, as the 2006 Act consolidated various pre-existing Acts.

Source: http://www.parliament.uk

Date: 28/03/2018