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Field Fisher Waterhouse advises on Hull NHS restructuring project

14 June 2010

Field Fisher Waterhouse LLP has advised on the transfer of front-line healthcare services provision from Hull Teaching Primary Care Trust (NHS Hull) to the City Health Care Partnership CIC (CHCP CIC), a community interest company. Hull will be among the first places in the country to have services such as health visiting and district nursing delivered by a not-for-profit community interest company, that in the future will offer employees the opportunity to become shareholders.

In 2006, Hull was identified as a ‘Pathfinder’ for social enterprise by the Department of Health and since then has been working towards the separation of its commissioning and healthcare provider functions.  Around 1200 staff have transferred to CHCP CIC which will reinvest any financial surpluses it makes into staff, the local community and service development. The restructuring project is significant given the new Government’s emphasis on growing social enterprise and the co-ownership of public services.

Field Fisher Waterhouse advised CHCP CIC on the novel employee-owned business structure, the constitution of the new business, the transfer of NHS Hull’s provider services business, ten separate service contracts and on property law issues.

The firm also advised Central Surrey Health Ltd on the only previous project of this kind which, in 2006, saw the local Primary Care Trust transfer the delivery all nursing and therapy services in the Central Surrey Health area to a not for profit limited company co-owned by its 700 employees.

Field Fisher Waterhouse corporate partner Neil Palmer and employee ownership partner Graeme Nuttall led on the project, assisted by Purvis Ghani (Employment) and Penny Wotton (Trusts), Mark Gearing and Guy BurmanReal Estate partner Ramatu Banga provided property law advice assisted by Gary Pickard and John Downes.

Graeme Nuttall said:

“This is a significant restructuring project for the NHS. It is a pioneering example of the transfer of public service provision to a not-for-profit company in which all employees are shareholders. We expect this to be a growing trend given that the coalition Government has already confirmed it will support co-ownership of public sector services. The Big Society programme launched in May this year announced a public sector workers' right to form employee owned co-operatives and bid to take over the services they deliver. This was a significant step forward from the more limited "Right to Request" that was launched in 2008 which gave NHS staff the ability to create social enterprise businesses and I anticipate we will see further take up of this model in the future.”

NHS Hull was advised by Hempsons. Beachcrofts advised on certain property and pensions aspects of the transfer. 

For further press information please contact:
Louise Eckersley, PR Manager, Field Fisher Waterhouse LLP on +44 (0)20 7861 4120.