Trusts with subsidiary companies

This list of NHS trusts with subsidiary companies was compiled by the Health Service Journal. The information was collected from the companies’ annual reports, enquiries to the trusts and information provided by Unison.

In each case the HSJ tried to determine as much information about the company as possible, including how many staff had or would be transferred, what savings would be made and the company turnover. The related article can be found here.

At the end of September 2018, NHS Improvement ordered trusts to "pause any current plans to create new subsidiaries or change existing subsidiaries”. In October, NHSI opened up a month-long consultation on proposals over the approval and regulation process of wholly owned subsidiaries which would require NHS Trusts to submit a business case. In November 2018, NHSI announced that it would have to look-over a business case for the formation of a subsidiary company and then decide whether to give approval; NHSI could stop a subsidiary company being formed if it thinks it is a risky plan.

Trusts preparing to transfer staff

Wigan Wrightington Leigh FT – WWL Solutions Ltd (established 2017)

Staff expected to transfer: 900

Expected turnover: £25m

Gloucestershire Hospitals FT –  Gloucestershire Hospitals Subsidiary Company Ltd (2017)

Staff expected to transfer: 900

Savings: The trust expects to achieve recurrent savings of £3.5m, including pay bill and VAT benefits.

Airedale Foundation Trust – AGH Solutions Ltd (2017)

Staff expected to transfer: 325

Expected turnover: £25m

Savings: Recurrent pay bill savings of £450,000 expected after five years; the trust said the VAT benefits are still being calculated.

Birmingham Women and Children’s FT –  BWC Management Services Limited (2017)

Staff: 300

Turnover: £23m

Savings: No pay bill savings are expected; the trust said VAT benefits are unclear.

Harrogate District FT – Harrogate Healthcare Facilities Management Ltd (2017)

Staff expected to transfer: 300

Central and North West London FT – Quality Trusted Solutions Ltd (2017)

Staff expected to transfer: 35

Expected turnover: £25m

Savings: Some pay bill savings expected but the trust does not expect VAT benefits.

East Kent Hospitals University Foundation Trust

In May 2018, the Trust announced that it was setting up a NHS-owned subsidiary company to employ around 1,100 staff. The vast majority, 850 cleaning, catering, switchboard and portering staff, are currently employed by Serco under contract with the Trust; Serco is due to leave the contract a year early.

The new subsidiary will also employ estates, procurement and facilities transferred from the Trust. The transfer will take place 1 August 2018.

Trusts considering an estates company and staff transfer

Royal United Hospital Bath FT

Staff expected to transfer: 600

York Teaching Hospital FT

Staff expected to transfer: 900

Expected turnover: £40m

Savings: Trust expects £4.9m historical VAT recovery on capital schemes, £12m VAT savings on capital schemes over the next five years and up to £5.7m recurrent revenue savings.

The following eight trusts are considering a subsidiary company, but details are unclear as to the scope of the company:

  • Bradford Teaching Hospitals FT
  • Calderdale and Huddersfield FT
  • Hull and East Yorkshire Hospitals Trust
  • Leeds Teaching Hospitals Trust
  • Mid Yorkshire Hospitals Trust
  • North Tees and Hartlepool FT
  • Rotherham Foundation Trust
  • Royal Free London FT

Trusts with active estates subsidiaries with at least 100 staff

Northumbria Healthcare FT –  Northumbria Healthcare Facilities Management Ltd (2012)

Staff: 806

Savings: No pay bill savings, but has delivered “significant” VAT benefits on capital schemes. It could not provide details without a freedom of information request.

Other details: The majority of staff transferred into the company in the last six months. The company says all staff are all paid on NHS terms and conditions.

Northumberland, Tyne and Wear FT – NTW Solutions Ltd (established in 2017)

Staff: 583

Turnover: £26m

Savings: Recurrent pay bill savings of between £100,000 and £300,000 are expected, with up to £1.4m of recurrent savings from non-pay budgets. The trust did not specify how much of this would relate to VAT.

Gateshead Health FT– QE Facilities Ltd (2014)

Staff: 564

Turnover: £36m

Savings: Trust said information is “commercially confidential”.

Bolton FT – Integrated Facilities Management Bolton Ltd (2017)

Staff: 550

Yeovil District Hospital FT – Simply Serve Ltd (2018)

Staff: 360

Turnover: £23m

Savings: The trust expects recurrent pay bill savings of £1.5m after five years, and £4.6m after ten years, with the potential for other gains from developing and selling services. It also expects recurrent VAT benefits of £1.6m.

City Hospitals Sunderland FT – City Hospitals Sunderland Commercial Enterprises Limited (2017)

Staff: 250

Turnover: £10m

Other details: The company also operates outpatient pharmacies.

Blackpool Teaching Hospitals FT – BFW Management Ltd (2017)

Staff: 150

Turnover: £20m

Barnsley Hospital FT – Barnsley Facilities Services (2017)

Staff: 140

Trusts with an active subsidiary with less than 100 staff

King’s College Hospital FT – King’s Interventional Facilities Management LLP (2016)

Staff: 99

Turnover: £46m

Other details: Provides facilities for clinical teams across eight areas. The company is jointly owned by the trust and its subsidiary Kings Commercial Services Ltd.

Salisbury FT – Salisbury Trading Limited (2013)

Staff: 77

Turnover: £3.6m

Savings: The trust said the company had delivered recurrent efficiency savings of £150k, but no material VAT benefits.

Other details: The company provides laundry services to the trust and other NHS organisations.

Birmingham and Solihull Mental Health FT – Summerhill Supplies Limited (2012)

Staff: 52

Turnover: £7.7m

Savings: Overall annual savings of £1m, of which around half relates to VAT.

Other details: Company also provides outpatient dispensing services.

Guy’s and St Thomas’ FT – Essentia Trading Ltd (2013)

Staff: 48

Turnover: £6.7m

Other details: Provides consultancy services on strategy and estate development. The trust’s facilities and estates function, which includes around 1,500 staff, continues to be managed and operated in house but also runs under the Essentia brand.

South Central Ambulance Service FT – South Central Fleet Services Ltd (2015)

Staff: 41

Turnover: £5.2m

Other details: Responsible for the delivery and maintenance of vehicles.

The Clatterbridge Cancer Centre FT – Clatterbridge PropCare Services Ltd (2016)

Staff: 13

Turnover: £25m

Other details: Set up principally as a delivery vehicle for building projects and management of sites, including contracts with other NHS organisations that use them.

Hampshire Hospitals FT – Hampshire Hospitals Contract Services Limited (2013)

Staff: 5

Turnover: £5.6m

University Hospitals Birmingham FT – UHB Facilities Ltd (2013)

Staff: 3

Turnover: £2m

Savings: No pay bill savings. A one-off VAT benefit from a capital project but no recurrent benefits.

Other details: Established when estates staff were outsourced as part of a PFI contract for the main hospital site, to manage buildings outside the contract.

Royal Berkshire NHS Foundation Trust – Healthcare Facilities Management Services Ltd (2008)

Staff: 0

Turnover: £4m

Other details: Company established to run two new health centres in Bracknell and Reading.

University Hospital Southampton FT – UHS Estates Limited (2016)

Staff: 0

Turnover: £179,000

County Durham and Darlington FT - Synchronicity Care Ltd (2015)

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