Wholly owned subsidiaries

K Magee made this Freedom of Information request to NHS Improvement This request has been closed to new correspondence. Contact us if you think it should be reopened.

The request was successful.

K Magee
Delivered

Dear NHS Improvement,

Are there any plans to ensure than where wholly owned subsidiaries are created that the Directors of the parent NHS organisation are not able to benefit from additional monetary funds from the wholly owned subsidiaries? And are there any plans to ensure that where wholly owned subsidiaries are formed that the existing leadership is performing to a comparative standard to that of a private sector organisation?

Yours faithfully,

K Magee

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Dear K Magee

 

Thank you for your email dated 13 April 2018 which we will be treating as
an enquiry as opposed to a request for information under the Freedom of
Information Act.

 

Wholly owned subsidiaries are 100% owned by trusts, ensuring that profits
are reinvested back into the NHS.

 

Many subsidiaries are held to account through a detailed contracts,
specifications and quality KPIs - this provides greater scrutiny,
accountability and continuous improvement in the delivery of these
services which would not have been in place before.

 

NHS foundation trusts also have a wider power to establish and participate
in companies for purposes connected to their functions. That power is long
established (2006 legislation), and has been used, for example, in
relation to the delivery of pathology services. NHS Improvement does not
currently have any specific oversight in that regard: in the past this
wider power has been considered to be one of the foundation trust
“freedoms”.

 

I hope this goes some way in answering your enquiry.

 

Kind regards

 

 

Sally Davies | Enquiries, Complaints and Whistleblowing Officer

T: 020 3747 0556
E [1][email address] | W [2]improvement.nhs.uk
Wellington House, 133 – 155 Waterloo Road, London, SE1 8UG

 

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