STRUCTURE: A report to Monitor from consultants Ernst and Young has recommended cutting expenditure on Mid Staffordshire Foundation Trust by half, as services are moved to other trusts.

All the options presented to the regulator by a “contingency planning team”, run by Ernst and Young, envisage cutting its income from £100m to between £48 and £52m.

The consultants recommended a trust special administrator take the trust through a reconfiguration process which would leave it with facilities which would treat approximately half of its current rate of accident and emergency attendances and 90 per cent of maternity “patient visits”.

Their report was published today, as Monitor consults with stakeholders about whether it will place the trust into the administration regime.

The team’s “preferred option” for change would see the trust lose inpatient paediatric services, while no births would take place.

The assessment team estimated the total “transition” costs of the administration and reconfiguration process at between £60m and £70m

Transition costs cover staff relocation or redundancy costs, double-running and implementation costs plus some allowance for capital spending, the report said.

On services, the report said: “For maternity - 90 per cent of patient visits will stay at Mid Staffs under a local hospital model, as all non-complex ante- and post-natal outpatients would still be delivered in the current locality.

“For paediatrics, 85 per cent of patient visits (outpatients, day cases) will stay in the same locality under the local hospital model [and] for A&E, it is estimated that at least 50 per cent of attendances (those that are currently discharged with no/GP follow up) could stay locally, but this will depend on the nature of the emergency and urgent care service that is delivered in Stafford.”