News / Flory calls for innovation focus from directors ...

By Steve Brown

NHS trusts and foundation trusts need to deliver greater innovation and show a willingness to transfer services to other providers, NHS Trust Development Authority (NHS TDA) chief executive David Flory told provider finance directors in May.

Speaking to the HFMA’s FT Finance directors' forum, Mr Flory said providers had to ensure their focus was as much on future delivery of sustainable high-quality services as on current performance.

'If the focus is just on avoiding failure today, we won't take the opportunity to shape the service in the way we need,' he said.

The importance of future sustainability will be reflected in the NHS TDA's assurance and assessment work with would-be FTs. Mr Flory said that this would focus as much on organisational health – the ability to deliver safe, high-quality and financially viable services in the future – as on meeting performance targets.

Mr Flory acknowledged that current challenges, coupled with the heightened scrutiny of the NHS following the Francis report, could discourage innovation.

'[In these circumstances] we all tend to more risk aversion and keeping our heads below the parapet, working harder on what we've got to do right now. But if we become too afraid to take calculated risks in making the changes we need to make or of ceding control of the money and resources to others who may be able to deliver some services better, we won't be able to deal with some of the issues we need to tackle.'

Of the 101 trusts currently overseen by the NHS TDA, reports suggest 20 are not planning to seek FT status. This will involve some mergers and acquisitions, with services and facilities transferring to new providers. But Mr Flory warned that the NHS would need to improve its approach to transactions, without acquirers expecting to receive payment for 'every conceivable risk'.

'We need to find a place where there is a great opportunity and sensible and manageable level of risk – where acquirers take both the risk and the benefit,’ he said.

A paper to the NHS Trust Development Authority Board at the end of May confirmed that 14 trusts were currently pursuing an organisational transaction, with eight of these having identified a preferred solution.