ARTICLE · 04 JUNE 2013

Sector Focus: The Legislative Framework For NHS Trust Insolvency

Nabarro LLP

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Many hospitals are facing insolvency as a result of a variety of complex factors. Yet it is vital, both politically and socially, that NHS services are maintained.

United KingdomInsolvency/Bankruptcy/Re-Structuring

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Summary and implications

Many hospitals are facing insolvency as a result of a variety of complex factors. Yet it is vital, both politically and socially, that NHS services are maintained.

There are different regimes in force for insolvent NHS trusts and insolvent NHS foundation trusts. It is expected that rules for companies providing NHS-funded services will come into force in 2014.

In July 2012, Matthew Kershaw was appointed the first ever trust special administrator (TSA) over South London Healthcare NHS Trust. It was the first NHS trust to use the Regime for Unsustainable Providers.

More recently, Alan Bloom, Alan Hudson and Professor Hugo Mascie-Taylor were appointed TSAs over Mid-Staffordshire NHS Foundation Trust by Monitor. This represents the first use of the "special administration" regime for a foundation trust.

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