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Nhs Trusts (Finances)

Volume 301: debated on Wednesday 24 September 1997

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To ask the Secretary of State for Health how many trusts have been assessed by his Department in respect of their long-term financial viability; and what has been the outcome in each case. [17333]

The financial viability of all trusts is assessed as a part of each trust's annual business planning cycle. The financial monitoring process and independent auditing of accounts are also elements in the assessment framework. The outcome in the vast majority of cases has been the continued existence of the trusts as they were established.Trusts are merged or reconfigured for a number of operational reasons. The majority of reconfigurations are to improve local service provision although a small number have resulted principally from concerns over their long term financial viability. These are:

the merger of West Dorset Community Health NHS Trust with West Dorset Mental Health NHS Trust to form the Dorset Community NHS Trust on 1 April 1994;
the merger of Royal Liverpool University NHS Trust and Broadgreen NHS Trust to form Royal Liverpool University and Broadgreen NHS Trust on 1 April 1995;
the merger of Louth and District Healthcare NHS Trust and Lincoln Hospitals NHS Trust to form Lincoln and Louth NHS Trust on 1 April 1996;
the merger of Royal Free NHS Trust and the Royal National Throat, Nose and Ear Hospital NHS Trust on 1 April 1996;
the dissolution of Anglian Harbours NHS Trust on 30 September 1997.