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<p>On 25 January 2017, the Yeovil District Hospital NHS Foundation Trust board approved
work to examine the case for establishing a wholly owned subsidiary for estates and
facilities management. On 20 December 2017, after staff consultation had taken place,
the Trust board approved the formation of a wholly owned subsidiary.</p><p>NHS Improvement
has reviewed key relevant documents including the Trust board paper evidencing informal
staff engagement about the proposed changes during October 2017, as well as a formal
30-day staff consultation during November 2017. Following the staff consultation,
the Trust made changes to its proposal which benefitted the staff transferring to
the new company. The Trust has confirmed to NHS Improvement that it took legal advice
in relation to its duty to consult staff on the changes.</p><p> </p><p>The Trust did
not establish the wholly-owned subsidiary prior to consulting clinical commissioning
groups (CCGs). NHS Improvement has seen correspondence from Somerset CCG on 19 December
2017 giving permission for the wholly-owned subsidiary to be a permitted subcontractor.
NHS Improvement has seen similar correspondence from NHS England Specialised Commissioners
on 22 November 2017 approving the wholly-owned subsidiary as a permitted subcontractor.
The Trust board took the decision to approve the formation of the wholly owned subsidiary
on 20 December 2017.</p><p>Yeovil District Hospital NHS Foundation Trust has told
NHS Improvement that it has not been necessary to spend additional time beyond normal
Board business discussing clinical matters as a result of establishing a wholly-owned
subsidiary company.</p><p> </p>
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