Royal Surrey financial position

At the Board meeting today the Board Chair  described the financial position of the Royal Surrey as 'dire' and 'unsustainable'. The Royal Surrey is not of course alone in experiencing financial deficits. Whereas the proposed merger with Ashford and St Peters will result in financial savings these will not be evident for at least 18 months or more. Difficult decisions are in the offing albeit the Executive and Board are determined that. whatever is done. it will not compromise patient safety.

Merger latest schedule

The latest schedule is

• Monitor (the body which oversees Foundation Trusts) issues risk rating end July. If all OK
• Boards of both Royal Surrey and Ashford and St Peters approve merger late August
• Both sets of Governors vote on merger early Sept. If both in favour
• Merger formally takes place 1 October.

Ads for the new Chief Executive, the Chair and the new Non-Executive Directors have been placed.

Merger update

 

For about 12 months the Boards of the Royal Surrey and Ashford and St Peters have been active in developing the Business Case for the proposed merger. The governors’ Merger Working Group which I chair has also been very active in challenging the case wherever concerns have arisen. Governors have not always been successful in realising the changes they would have liked but can claim some credit.

 

Last week the Boards approved the final case and it has now been submitted to Monitor (the body that oversees Foundation Trusts). Monitor will crawl over it and in a few months revel its conclusions in the form of its view of the level of risk which the merger presents. A ‘Red’ rating will doubtless stop things in their track and cause a considerable rethink. ‘Amber’ will result in a reassessment in the areas causing concern and ‘Green’ will of course lead the Boards to proceed rapidly towards formal merger.

 

If the rating is Green then in about May/June both Boards will meet to formally approve a merger and immediately after that each Council of Governors will be asked to approve. A majority of Governors on both Councils have to approve for the Merger to proceed.