On 18 March 2010 the Cabinet agreed that the Council’s preferred option for the delivery and commissioning of shared services would be a Joint Venture Company (representing a public public partnership) involving Herefordshire Council (HC), NHS Herefordshire (NHSH) and Hereford Hospitals NHS Trust (HHT). The Cabinet authorised the Deputy Chief Executive (DCE) to progress and take all necessary steps to establish a JVCo in consultation with the Leader and Deputy Leader of the Council and Trust Boards.

A further report seeking a formal decision to agree terms of the Council’s participation in the JVCo is to be presented in September 2010.  The purpose of this report is to update the Cabinet on the progress to date and next steps on the Shared Services Programme.

A similar update report is scheduled for the NHSH Board on 21 July 2010.

THAT Cabinet

(a)               Note progress made on the Shared Services Project since March 2010  and

(b)               Note the current challenges and risks, principally:

                                                                           i.      Review of the Business Case;

                                                                         ii.      Partnership agreement for establishing the JVCo;

                                                                       iii.      Fundamental requirement for cultural and process change across the whole of HPS to deliver savings;

                                                                       iv.      Implementation of the Agresso system in April 2011;

(c)               Note the key role of all stakeholders in leading the organisational and cultural changes required to deliver transformed support services and savings;

(d)               Note that a further report seeking formal decision to agree terms of the partners’ participation in the JVCo will be presented to the Board and Cabinet in September.     

1.                  To ensure that the Cabinet is briefed and is able to give guidance as appropriate on the work on Shared Services, to enable the projected benefits and costs savings to be delivered.

Alternative options have been evaluated as part of the options appraisal