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Latest news in Yorkshire: September 29, 2018 01:46:04 PM

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An MP has urged hospital bosses to abandon plans to “privatise” parts of the
service, accusing them of a “tax dodge”.

Wentworth and Dearne MP John Healey publicly opposed the move this week,
after raising his concerns privately with top directors.

If approved, the proposals would see a wholly-owned subsidiary company
created, to which porters’ and cleaners’ contracts would be transferred.

Union reps worry about worsening work conditions for those affected, and
thus a decline in standards.

The board was due to vote on the proposals on Tuesday, but an order last
week from NHS Improvement – the national body helping trusts to manage
challenges – blocked any decision-making.

The memo asked directors around the UK to “pause any current plans to create
new subsidiaries or change existing subsidiaries”.

It added: “We’ll be consulting on a new regulatory approach to this in
October and, following the consultation, we will be issuing new guidance.”

Mr Healey said: “The Rotherham Hospital board must now set aside any plans
it has for setting up an NHS subsidiary company.

“Since the idea was first floated, I’ve voiced my concerns directly with the
chairman and chief executive.

“It would create a two-tier workforce and smacks of a dodge to avoid paying
VAT.

“So I welcome the NHS nationally calling a halt on these local hospital
companies.”

He added: “Labour has repeatedly warned that thousands of NHS staff would in
effect see their jobs privatised, with their national pay and conditions put
at risk.

“It’s a sign of just how stretched NHS finances have become that hospitals
are reaching for ever more complicated schemes to try to save money.”

At Tuesday’s meeting, hospital trust chief executive Louise Barnett briefly
mentioned the memo, before chairman Martin Havenhand moved on to the next
item.

Mr Healey said the enforced halt should encourage directors to consider
other options.

Labour colleagues have written to the Government, demanding a block on
wholly-owned subsidiaries and a review of hospital tax requirements.

Barnsley Hospital NHS Trust established Barnsley Facilities Ltd last year,
transferring its health and safety, fire, security, procurement, estates and
facilities staff to the private firm.

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News source: rotherhamadvertiser.co.uk