Commenting on the announcement that the South London Healthcare NHS Trust may be put into special administration, Richard Fleming, UK Head of Restructuring at KPMG, said:
“In the private sector, an administration is an important mechanism for making tough decisions to address a severely financially distressed company’s problems. We expect this to be true of health special administrations as well, where the regime seeks to safeguard patient care as a priority but also allows the special administrator to address the most difficult financial challenges.
“The success of NHS turnaround is mixed, not helped with proposals to reconfigure services sometimes taking years of consultation. In the banking sector, the special resolution regime has worked to minimise disruption to customers, whilst enabling a restructuring and return to stability; as in the case of Dunfermline Building Society. Rather than have their plans left in limbo, the ability to accelerate consultation on service change should help trusts in financial distress to make their service delivery and patient care more sustainable, more quickly.”
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