North Cumbria Integrated Care (NCIC) was able to serve notice on its private sector partner, Health Management (Carlisle) Limited on December 31, convincing NHS England (NHSE) and Whitehall ministers that ending the contract would “provide value for money.”
NHSE, the Treasury, Department for Health and Social Care and other stakeholders were satisfied that the move would provide value for money after seeing a “robust business case” from NCIC.
A hospital ward.
NCIC’s contract with the private company is set to end on March 31. It was originally set to be in place for 45 years.
Newtown Road’s Cumberland Infirmary Hospital was the first to be built on a PFI contract (Private Finance Initiative) in 2000 under Tony Blair’s Government.
PFI contracts are an agreement between private companies and public sector organisations such as councils and health trusts to build hospitals, schools and roads.
A spokesperson for NCIC said: “The trust is working with Health Management (Carlisle) Limited and its primary sub-contractor Mitie to deliver an orderly and safe transition of services that maintains quality and safety of soft and hard facilities management services provided at Cumberland Infirmary Carlisle.”
The Cumberland Infirmary on Newtown Road, Carlisle. (Image: Newsquest)
They said: “We are conscious that staff working on this contract will be concerned about the potential implications. Commercial conversations are ongoing, but the Trust, together with Health Management (Carlisle) Limited and Mitie, are working together to facilitate the safe and orderly transition of all staff and services.”
NCIC has made the decision to end the contract four years prior to its optional 30-year break point.
The trust would not be drawn on the number of jobs potentially affected by ending the contract or if it would enter into a new contract with a different company.
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NCIC’s spokesperson said that the move is a testament to partnership working between the trust, the North East and North Cumbria NHS board and NHS England.
They said: “By working together, we have delivered a long-term solution that strengthens financial sustainability and creates greater flexibility to invest in services for the people of North East and North Cumbria.”
Further updates will be provided ahead of the contract ending on March 31, the NHS trust has said.