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NHS shake-up pay-outs 'top £80m' | |
(1 day later) | |
The reorganisation of strategic health authorities (SHAs) in England has seen the NHS pay out more than £80m in redundancy costs, the BBC has learned. | |
More than 700 staff lost their jobs in last year's shake-up, which saw the number of SHAs reduced from 28 to 10. | |
The cost of the average redundancy package for senior managers was more than £350,000. | The cost of the average redundancy package for senior managers was more than £350,000. |
Opposition parties criticised the cost of the redundancies, but the government said it was just a short-term cost. | Opposition parties criticised the cost of the redundancies, but the government said it was just a short-term cost. |
These are the kind of costs that result from endless reorganisations. Not one penny contributes to the health of patients Andrew Lansley, shadow health secretary | These are the kind of costs that result from endless reorganisations. Not one penny contributes to the health of patients Andrew Lansley, shadow health secretary |
The BBC obtained the figures from the 10 SHAs using the Freedom of Information Act. | The BBC obtained the figures from the 10 SHAs using the Freedom of Information Act. |
Twenty-eight SHAs were set up in 2002 to supervise local health services in England. | Twenty-eight SHAs were set up in 2002 to supervise local health services in England. |
Their job was to co-ordinate care and deliver government policy. | |
But three years later ministers announced £250m had to be cut from red tape and four years after they were created the regional bodies were merged into 10. | But three years later ministers announced £250m had to be cut from red tape and four years after they were created the regional bodies were merged into 10. |
Some 764 people were made redundant or took early retirement at a cost of £82.89m. | Some 764 people were made redundant or took early retirement at a cost of £82.89m. |
That included 61 senior managers. Their redundancy packages cost an average of £358,355. | That included 61 senior managers. Their redundancy packages cost an average of £358,355. |
Deal | Deal |
One chief executive's early retirement deal cost his SHA £900,000. | One chief executive's early retirement deal cost his SHA £900,000. |
But the Liberal Democrats say the true cost of the changes must include the re-organisation of primary care trusts, which were reduced from over 300 to 152 last year. | But the Liberal Democrats say the true cost of the changes must include the re-organisation of primary care trusts, which were reduced from over 300 to 152 last year. |
They claim that the cost of those mergers could be as high as £60m, making a total bill for the changes of more than £140m. | They claim that the cost of those mergers could be as high as £60m, making a total bill for the changes of more than £140m. |
Liberal Democrat health spokesman Norman Lamb said: "This is the price we're paying for botched reforms." | Liberal Democrat health spokesman Norman Lamb said: "This is the price we're paying for botched reforms." |
"The government rushed into ill thought out reform...when the system didn't work they changed it." | "The government rushed into ill thought out reform...when the system didn't work they changed it." |
Shadow Health Secretary Andrew Lansley added: "These are the kind of costs that result from endless reorganisations. Not one penny contributes to the health of patients." | Shadow Health Secretary Andrew Lansley added: "These are the kind of costs that result from endless reorganisations. Not one penny contributes to the health of patients." |
Health officials from the SHAs said cutting the jobs will lead to less bureaucracy and put more money into front-line services. | Health officials from the SHAs said cutting the jobs will lead to less bureaucracy and put more money into front-line services. |
And a Department of Health spokeswoman said: "Inevitably there will be short-term costs as a result of reorganisation and it is right that NHS staff who are made redundant get what they are contractually and legally entitled to. | And a Department of Health spokeswoman said: "Inevitably there will be short-term costs as a result of reorganisation and it is right that NHS staff who are made redundant get what they are contractually and legally entitled to. |
"However, the long-term benefits far outweigh any short-term costs." | "However, the long-term benefits far outweigh any short-term costs." |
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