HC Deb 14 October 1996 vol 282 cc742-3W
Mr. Morgan

To ask the Secretary of State for Wales what proposals he has to initiate discussions on reviewing the number of trusts in the Welsh national health service; and if he will make a statement. [40673]

Mr. Hague

None. However, I am prepared to consider proposals put forward by the service.

Mr. Morgan

To ask the Secretary of State for Wales what arrangements he has made for ensuring the financial viability of NHS trusts; what part he has assigned to health authorities for ensuring such viability; and if he will make a statement. [40661]

Mr. Hague

In order to attain trust status an application containing detailed financial projections for the first three years of operation is submitted for approval. These projections are analysed by both of my officials and independent external consultants. Only if the outcome of the analysis is positive is trust status approved.

Once established, a trust is required to report its current and projected financial performance at regular intervals to my officials. Should the financial performance of a trust be unsatisfactory they would have to produce plans for recovery against which they would be monitored.

The health authorities in Wales have no specific role assigned to them in this monitoring process but are involved in the agreement of recovery plans.