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<p>The £7,250,000 incurred by the special administration process at Mid Staffordshire
NHS Trust relates to the period when the trust special administrators (TSAs) were
appointed in April 2013, to the point at which the Secretary of State announced his
decision to accept the TSAs' proposals in February 2014.</p><p> </p><p>We are informed
by Monitor that the total figure of £7,250,000 can be broadly broken down as follows:</p><p>-
Cost of the TSAs and supporting team to run the Trust - £2,000,000;</p><p>- Cost of
solution development - £3,600,000; and</p><p>- Cost of stakeholder engagement and
consultation - £1,650,000.</p><p> </p><p>Monitor has estimated the total cost of the
special administration process will be £12 to £15 million. This was first announced
as part of its decision to accept the TSAs' final proposals on 16 January 2104 and
re-stated in an announcement on 13 March 2014. This includes the £7,250,000 and £250,000
expenses incurred up to the point of the Secretary of State's decision.</p><p> </p><p>The
remainder of the estimated total cost consists of costs incurred in the period leading
up to the dissolution of the trust. These are the cost of continuing to employ a team
to run the trust, and the cost of implementing the recommendations set out in the
TSAs' Final Report.</p><p> </p><p>We are also informed by Monitor that an original
budget for the remaining costs was agreed at approximately £7,000,000.</p><p> </p><p>That
total figure of £7,000,000 can be broadly broken down as follows:</p><p>- Cost of
the TSAs and supporting team to run the Trust - £1,500,000;</p><p>- Cost of delivering
the transaction - £2,100,000; and</p><p>- Cost of splitting the Trust - £3,400,000.</p><p>
</p><p>The team running the trust will be required to remain in place up to the point
at which the trust is dissolved.</p>
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