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<p>The guidance for use of management consultancies is set out as part of the spending
approvals process. Monitor has published the following guidance for foundation trusts
“Consultancy spending approval process: Initial guidance to NHS foundation trusts”
with the Trust Development Authority (TDA) publishing similar for NHS trusts “Consultancy
spending controls: Initial Guidance to NHS Trusts”. Copies of the guidance are attached.</p><p>The
guidance is clear that expenditure on management consultancy must demonstrate that
the skills and expertise of advisors cannot be delivered through use of existing resources.
It is also a requirement that value for money must be demonstrated. This approach
is the same for NHS providers, NHS Improvement or any NHS organisation. Therefore
we are content NHS Improvement’s approach to managing turnaround programmes is consistent
with this requirement.</p><p> </p><p>NHS Improvement ensures that lessons learned
from all financial turnaround programmes are taken into account when considering how
to handle any financially challenged providers requiring turnaround actions in the
future. This includes the use of the best available, most appropriate consultancies
with the right blend of skills and experience required to deliver the turnaround programme.</p><p>
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