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The Process and Impact of Trust Mergers in the National Health Service: A Financial Perspective

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  • Andrew Hutchings
  • Pauline Allen
  • Naomi Fulop
  • Annette King
  • Gerasimos Protopsaltis
  • Charles Normand
  • Rhiannon Walters

Abstract

Mergers in the UK National Health Service have been justified by their perceived benefits. This article reports the findings from a study exploring the financial outcome of trust mergers. The authors found that financial deficits in constituent trusts, anticipated management cost savings and their reinvestment in services are important drivers for merger. However, savings achieved in the first two years following merger were below target and there was a lack of transparency in how savings had been reinvested. The merged trusts were able to partially address equity issues, a theme that emerged during the merger process. This article highlights important issues that need to be considered when planning mergers and reconfigurations.

Suggested Citation

  • Andrew Hutchings & Pauline Allen & Naomi Fulop & Annette King & Gerasimos Protopsaltis & Charles Normand & Rhiannon Walters, 2003. "The Process and Impact of Trust Mergers in the National Health Service: A Financial Perspective," Public Money & Management, Taylor & Francis Journals, vol. 23(2), pages 103-112, April.
    • Handle: RePEc:taf:pubmmg:v:23:y:2003:i:2:p:103-112
    DOI: 10.1080/09540962.2003.10874831
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    Cited by:

    1. Gaynor, Martin & Laudicella, Mauro & Propper, Carol, 2012. "Can governments do it better? Merger mania and hospital outcomes in the English NHS," Journal of Health Economics, Elsevier, vol. 31(3), pages 528-543.
    2. Fulop, Naomi & Protopsaltis, Gerasimos & King, Annette & Allen, Pauline & Hutchings, Andrew & Normand, Charles, 2005. "Changing organisations: a study of the context and processes of mergers of health care providers in England," Social Science & Medicine, Elsevier, vol. 60(1), pages 119-130, January.
    3. Moran, Valerie & Allen, Pauline & Sanderson, Marie & McDermott, Imelda & Osipovic, Dorota, 2021. "Challenges of maintaining accountability in networks of health and care organisations: A study of developing Sustainability and Transformation Partnerships in the English National Health Service," Social Science & Medicine, Elsevier, vol. 268(C).

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