Health regulators have spent millions on failing IT systems, empty offices and redundancy payments.
Details of the full transition costs in Care Quality Commission minutes revealed April’s merger between the Commission for Social Care Inspection, the Healthcare Commission and Mental Health Act Commission has led to more than £23m being spent on leases for empty offices and more than £700,000 on payouts to departing executives.
They also show it has inherited an IT system, valued at £17.5m, with “a number of major malfunctions”.
The IT system was taken on by CSCI in late summer 2008, during which “major malfunctions and workflow issues were experienced”, resulting in “significant extra resource”, CQC board minutes say. Work on correcting defects cost £2.3m.
The CQC had been unaware of the severity of the problems, many of which remain unresolved and will require significant investment, the minutes say.
CSCI draft financial accounts, discussed by the CQC board last month, show redundancies caused by the merger included CSCI chief inspector Paul Snell, who was paid at least £345,000 redundancy compensation plus a lump sum of at least £190,000.
Healthcare Commission chief executive Anna Walker and three senior executives received a total of £219,000 in compensation.