Submission on allowing insolvency for National Health Service Trusts to the Health & Social Care

Commission of Labour’s National Policy Forum

Allowing National Health Service Trusts to undertake insolvency proceedings would answer in part
the questions “How can we ensure that we maintain a universal health care system, free at the point
of delivery?”, “What measures can be put in place to ensure that our NHS and social care systems
are equipped with enough doctors, nurses and other healthcare staff to deal with ever increasing
demand?” and “How do we ensure the NHS and social care receives adequate funding in order to
meet rising demand?” asked in the Health & Social Care Commission’s discussion paper.

Allowing NHS Trusts to undertake insolvency proceedings would provide them with an opportunity
to review onerous financial commitments such as Private Finance Initiative contracts. It would
enable them to use, if necessary, the formal structure of a binding Company Voluntary Agreement or
process of administration. It would also allow them to seek additional funding from government in
a manner that would be recognised by all parties as exceptional.

I would like to submit a proposal to allow NHS Trusts to undertake insolvency proceedings in the
same manner as companies registered under the Companies Act 2006.