Scandal-hit Mid-Staffordshire NHS Foundation Trust to be put into administration
Includes Stafford Hospital, where 1,200 patients may have died needlesslyDecision has been made by Monitor, which regulates foundation trustsDone to 'safeguard the future of health services' provided by the trust

By
Sophie Borland

PUBLISHED:

14:19 GMT, 15 April 2013

|

UPDATED:

00:19 GMT, 16 April 2013

The hospital trust at the centre of one of the worst health scandals in living memory has been put into administration after losing 20million last year.

Mid Staffordshire NHS Foundation Trust has been taken over by a team of managers who will spend the next 45 days deciding its fate.

It is only the second time this has happened in the history of the NHS. South London Healthcare was put into administration last summer.

Mid Staffordshire NHS Foundation Trust - where up to 1,200 patients may have died needlessly after they were 'routinely neglected' - is to be put into administration, it was announced today

Mid Staffordshire NHS Foundation Trust – where up to 1,200 patients may have died needlessly after they were 'routinely neglected' – is to be put into administration, it was announced today

Mid Staffordshire, which runs
Stafford and Cannock hospitals, has a troubled past and up to 1,200
patients are feared to have died needlessly due to poor care between
2005 and 2009.

In February, a long-awaited report
blamed the disaster on a ‘culture of fear’, with managers being more
obsessed with meeting targets than patient care.

But the trust has long been plagued
by financial difficulties, largely caused by the fact that it does not
serve enough patients for its size.

The decision to put the trust into administration has been made by the watchdog Monitor, which regulates foundation trusts

The decision to put the trust into administration has been made by the watchdog Monitor, which regulates foundation trusts

This means it cannot generate enough income from providing treatment and services to cover its running costs.

In addition, it has struggled to
attract top doctors. As a result it has to use expensive agency staff to
plug gaps in the rota. On one occasion in 2011 it paid 5,700 for one
doctor to cover a 12-hour shift.

Last night the watchdog Monitor announced that the trust had appointed administrators to take over its running.

The new plan will be subject to a public consultation and services at the hospitals in Stafford and Cannock (pictured) will continue to run as normal until a final decision is reached

The new plan will be subject to a public consultation and services at the hospitals in Stafford and Cannock (pictured) will continue to run as normal until a final decision is reached

Dr Hugo Mascie-Taylor – one of the
country’s most senior doctors – and Alan Bloom, of accountancy firm
Ernst and Young, will spend the next 45 days deciding its fate.

They are likely to conclude it should
be broken up and taken over by neighbouring trusts, such as University
Hospitals North Stafford, Burton and Wolverhampton.

The watchdog insisted that all patient services would continue to be run as normal until its fate had been decided.

David Bennett, chief executive of
Monitor, said: ‘It is important that people in Mid Staffordshire know
that they can still access services as usual at Stafford and Cannock
hospitals while the trust special administration process is ongoing.’