The purpose of this report is to update Cabinet on the progress since the update provided on 22 July and to recommend the next steps on the Shared Services Programme in light of the further work that has been undertaken to revise the Business Case evaluate various delivery models and develop the future shape of support services. In particular, it signals a significant milestone in the project and sets out the detail of the Programme moving from the planning phase to implementation phase.

It also asks Cabinet to recommend to Council that a Joint Venture Company be established on terms to be agreed.

A similar report is scheduled for the NHS Herefordshire (NHSH) and Hereford Hospitals Trust (HHT) Boards later this month.

THAT Cabinet

(a)               Agreed to enter into formal shared service arrangements with its partners, NHS Herefordshire (NHSH) and Hereford Hospitals Trust (HHT), adopting a ‘multi-source’ approach; enabling different fit-for-purpose models to be used to deliver Shared Services for each service or group of services;

(b)               Endorsed the establishment of a Joint Venture Company and recommends to Council that such a Company be established;

(c)               Delegated the negotiation and agreement of the Heads of Terms for the Shared Service arrangement and for the establishment of the Joint Venture Company to the Chief Executive (with appropriate liaison with the Chief Executive of HHT);

(d)               Instructed the Chief Executive to undertake a full consultation with employees within the scope of the Shared Services programme, in accordance with policy and procedure for implementing these changes;

(e)               Instructed the Chief Executive to report progress of the implementation, as part of the corporate performance reporting process, linked to key milestones with risk management reports;

(f)                 Agreed to establish a ‘Shadow Board’ consisting of representatives from the three partners in order to provide strategic governance during the implementation phase. 

To ensure that Cabinet is briefed, and to agree the way forward to enable the projected benefits and costs savings to be delivered.

1.                  Alternative options have been evaluated as part of the options appraisal; Details have been included in the Appendices.