SHA investigation into chief executive's contract

East of England strategic health authority is attempting to resolve investigations into the contractual arrangements of an interim primary care trust chief executive.

Last November, Norfolk Suffolk and Cambridgeshire SHA conducted an investigation into the contract of Carole Taylor-Brown, who was seconded from her post as an SHA director the year before to become interim chief executive of three PCTs.

In August 2004, Ms Taylor-Brown became interim chief executive of Ipswich, Central Suffolk and Suffolk Coastal PCTs. The three PCTs were in financial difficulty and Ms Taylor-Brown was called in to lead a financial recovery plan. Board minutes from 2005 and 2006 show that during her time as chief executive she oversaw a substantial drop in the overspend from an expected£17.4m to£13.9m. Auditors KPMG praised the turnaround.

Ms Taylor-Brown's arrival in Suffolk coincided with a period of major upheaval in the SHA. Lillian Power, chair of Ipswich PCT at the time, resigned, making public her concerns at the way the three PCT chief executives had been removed. Several other PCT chairs and chief executives resigned or retired.

SHA chair Stewart Francis stepped down in April 2005, while chief executive Peter Houghton left a month later, spending a year as director of the national leadership network for health and social care until starting work as chief executive of South West London and St George's mental health trust last month.

An spokeswoman for East of England SHA, into which Norfolk, Suffolk and Cambridge SHA merged last month, said the former SHA 'instigated an investigation in November 2005 into an issue relating to the contractual terms of one of its employees which were made in 2004. Legal advice has been sought and an independent review carried out.'

She said the new SHA 'is seeking to resolve this matter, pending which it would be detrimental to disclose details. It is inappropriate to comment further at this time'.

Ms Taylor-Brown declined to comment.