NHS trust halts plans for transfer to social enterprise

NHS Gloucestershire has halted controversial plans to transfer services and more than 3,000 health staff to a social enterprise.

The transfer to a community interest company (CIC) had been set to go ahead on 1 October 2011, but was delayed after campaigners launched legal action.

The primary care trust said this week that it had reached an agreement with the claimant, local resident Michael Lloyd, to bring the proceedings to an end.

NHS Gloucestershire said the agreement not to proceed with the transfer to the CIC “at this time” had been reached “in view of the matters raised in court and without in any way accepting that there is merit in the legal complaints made by Mr Lloyd”.

Instead of pressing ahead with the CIC plan, the NHS trust will start a new process of finding the best option for community services in the county.

This will include advertising for expressions of interest for the provision of NHS services in Gloucestershire.

NHS Gloucestershire said it would also “take necessary steps to ensure an appropriate level of staff and public engagement”.

The PCT said it would then make a decision about whether to enter into arrangements with another NHS body for the provision of community healthcare services or whether it would provide services through a different arrangement, such as a CIC.

In a joint statement, NHS Gloucestershire and Mr Lloyd said: "Both parties agree that the public of Gloucestershire deserve the best possible NHS services. We recognise the need for efficient use of public funds and believe that an end to legal proceedings is in everyone's interest - particularly patients.

“The PCT recognises that it is important to maintain the confidence of patients, public and staff in decisions made concerning NHS services in our county.”

Leigh Day & Co partner Richard Stein, Mr Lloyd’s solicitor, said: “Mr Lloyd is extremely pleased with the outcome of the case. Gloucestershire PCT will now explore the possibility of being able to continue to deliver community health services within the NHS, which is in the best interests of patients  and the PCT staff who deliver the services."