22 August 2003
The first private sector company to win the franchise to manage a failing NHS trust must deliver three-star status within three years, it emerged this week.
Performance targets in the contract to manage Good Hope Hospital trust in Sutton Coldfield, won by consultancy Secta, state that the no-star trust must hit the top grade by the end of the three-year deal. Secta will also have to make savings in non-clinical areas, although any cuts will have to be approved by the trust's board.
Under the franchise, Anne Heast, a qualified nurse who has held a range of senior management posts, will be seconded from Secta to the trust to act as chief executive.
Her £122,500-a-year salary will be paid from the £1.3m fee the company will be paid over the contract's lifetime.
Good Hope's initial rating was three stars, but it was reclassified last December when irregularities in its waiting list figures came to light. Chief executive Jeff Chandra was dismissed when an internal disciplinary hearing found him guilty of gross misconduct.
Trust chair Sir Bernard Zissman said: 'This is a new chapter in the history of Good Hope Hospital, perhaps even in the NHS. The additional expertise this puts at our disposal will help us to continue to provide our patients with the best possible service and care.'
The Department of Health said the franchise would begin on September 1. 'Franchising Good Hope will not only ensure that a high-calibre individual takes over as chief executive, but also that a whole package of measures is implemented which secures sustainable improvements in performance at the trust,' it added.
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