Revealed: Shropshire health groups could merge to cut costs

Clinical commissioning groups (CCGs) are responsible for planning and ordering health care services in their area, and currently the county has two separate organisations, Shropshire and Telford & Wrekin CCGs.

The plan is for the organisations to combine, in a bid to make cuts of 20 per cent to running costs.

There have been no guarantees given over whether there would be redundancies as a result of the merger, or whether the organisations will keep their current premises or combine at one site.

Currently the Telford organisation is based at Halesfield in Telford, and the Shropshire group at William Farr House in Shrewsbury.

The proposal will be considered by both groups at their meetings this month, where committee members will be asked to proceed with the merger.

The financial situation facing Shropshire CCG has been stark, with the organisation dealing with a multi-million pound debt reported in January to be more than £50 million.

The letter revealing the plan has been signed by accountable officer for Telford, David Evans, his Shropshire counterpart David Stout, as well as Telford chairman, Dr Jo Leahy, and Shropshire chairman, Dr Julian Povey.

It outlines how the plans are seen as the best way of coping with a need to cut costs.

Discussions

It states: "In November 2018 CCGs were set the target of reducing running costs by 20 per cent by the 2019/20 financial year. Shortly after this, the NHS Long Term Plan was published setting out the key service priorities for the NHS over the next 10 years.

"Following this a number of discussions have taken place between Shropshire and Telford & Wrekin Clinical Commissioning Groups to explore how we could meet these challenges.

"We have considered various options including informal collaborative working arrangements and a formal dissolution of both CCGs to form one new strategic commissioner across Shropshire and Telford and Wrekin as recommended in the NHS Long Term Plan.

"Both CCGs have agreed that the option of forming a new organisation is the most beneficial way of achieving the 20 per cent cost reduction whilst allowing both CCGs to design a new organisation that will have a capacity and capability to achieve the priorities set out in the Long Term Plan more effectively and efficiently. This proposal would also reduce duplication of work and free up staff time."

The proposal will be considered at the governing boards of both CCGs this month – Shropshire tomorrow, and Telford & Wrekin on Tuesday, May 14.

Members at both meetings will be asked to "consider and agree a proposal to dissolve the two existing CCGs and create one new organisation".

If approved then a request to continue the process will be submitted to NHS England by September 30, with a completion date set for April 1, next year.

The report adds: "Both CCGs will need to undertake an organisational change programme and work is currently being undertaken as to how this will be done. Whilst we cannot guarantee there will no redundancies, we will do everything we can to reduce the need where possible. In regards to location it is too early to determine if CCG sites will remain as they are, but this will obviously be considered as part of the plans."