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No extra costs after health takeovers, HSC says

No extra costs after health takeovers, HSC says

Friday 02 August 2024

No extra costs after health takeovers, HSC says

Friday 02 August 2024


Health & Social Care has confirmed that the States haven’t incurred any additional costs after two services were nationalised in recent years – St John’s Residential Home and Alderney’s Island Medical Centre.

Following questions from Express, Health said total running costs for Saumarez Park’s 45-person nursing home – which was taken over by the States in January 2023 – totalled £2.2m, but fees and charges have fully covered this figure.

The States’ of both Guernsey and Alderney jointly took control of primary care in the northern isle in October 2022, acquiring the island’s only GP practice. Likewise, HSC says no additional costs are being incurred by Guernsey taxpayers following this. 

“The States of Guernsey maintains an arrangement with the Practice for medical services - the costs of this have not changed. The additional costs which are being incurred by the States of Alderney is set out in their annual accounts,” HSC said.  

“Any additional one-off costs associated with [the practice] would be treated as an operating cost for the business and accounted for accordingly.”  

Education and health spending is wrapped together in Alderney’s accounts, which rose from £217,283 in 2022 to £299,697 last year.   

HSC also confirmed that no changes have been made to employees’ terms and conditions after the services were taken into the public sector.  

This is despite Health President Deputy Al Brouard telling the States in December 2022 that all staff who wish to continue working at the home, but under the employment of the States, would be subject to its terms and conditions but would “not be financially disadvantaged by the transfer”. 

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Pictured: Both services were facing extreme financial pressures.

St John’s, like other care homes, were partly funded by the States’s Long Term Care Fund and these have continued on the same basis as the home’s previous operator. 

HSC said they are “now showing as part of the fee base that offsets the costs to HSC taking over the running of the St John residential Home, whereas previously these payments were wholly outside of HSC”. 

It added that fees for Alderney's hospital haven’t “materially changed” after the nationalisation and these payments are “related to long stay patients and are charged directly to those patients. 

It assured that efficiencies have been found at both facilities, in relation to staffing. 

Steps continue to be taken to develop and implement a model of integrated care in Alderney which, in addition, to best supporting islanders’ health and wellbeing may support efficiencies across the system as a whole,” it said.  

Island Medical Centre was taken over in October 2022 after the service hit trouble, signalling its intention to shut down the sole GP practice in May that year which led to Guernsey-based Queen’s Road Medical Practice stepping in to bridge a gap until the States agreed a takeover deal. 

Later that year financial issues were reported at St John’s which led to swift action from the States to take over operations. The States had leased the building, Saumarez House, to an independent charitable board since the 1960s to run the home.  

The States said both takeovers were necessary to ensure the continuation of essential health and care services in each island. 

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