Department of Health and Social Care written question – answered on 4th December 2018
Imran Hussain Labour, Bradford East
To ask the Secretary of State for Health and Social Care, whether NHS Foundation Trusts will be required to comply with the new NHS Improvement regulatory framework on wholly owned subsidiary companies.
Stephen Hammond Minister of State (Department of Health and Social Care)
Under powers granted under the NHS Act 2006, National Health Service organisations are able to create wholly owned subsidiaries as an alternative to outsourcing services to the private sector.
On 26 November 2018, NHS Improvement published new guidance on the creation of subsidiaries that provides for both NHS foundation trusts and NHS trusts to comply with the new regulatory framework and to understand what would count as a sound commercial case for setting up subsidiaries.