News / Financial help will be linked to conditions
According to guidance on the financial assistance that can be provided by the secretary of state for health, conditions could be attached to interim support – provided in the absence of a recovery plan – and planned term support – longer term support when a recovery plan has been agreed.
This includes loans and public dividend capital.
As well as directions on shared services or temporary staff costs, other operational management conditions could include limits on the remuneration of senior managers, surplus land disposal, the implementation of an energy conservation programme and the agreement of a procurement strategy.
Other terms may apply. These are linked to financial metrics, such as a minimum debt service cover ratio or limitations on additional debt, and covenants, including restrictions on mergers and disposal of assets.
Generally, applications for funding will be referred to the Independent Trust Financing Facility (ITFF), which will consult with Monitor, the NHS Trust Development Authority and NHS England. The ITFF will provide advice, but the final decision lies with the Department.
The guidance said failure to comply with conditions could ultimately lead to the appointment of a trust special administrator.
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