STRUCTURE: Two neighbouring Local Improvement and Finance Trusts (LIFTs) are set to merge.
Solent Community Solutions (SCS) was set up in 2005. Its shareholders are Hampshire PCT together with Community Health Partnerships, and the principal private sector partner is a subsidiary of Community Solutions Investment Partners (CSIP). SCS has created three wholly owned subsidiary companies to deliver a number of primary care centres and a community hospital to date, the most recent of which are Fareham Community Hospital and Gosport Medical Centre. Both were completed last year.
South West Hampshire LIFT (SWHL) was created in April 2008 between Southampton City PCT, Hampshire PCT and Community Health Partnerships and with the principal private sector partner being a subsidiary of Assura LIFT Holdings. SWHL also created a wholly owned subsidiary FundCo to deliver two schemes to date; Antelope House, a substantial Adult Mental Health Unit and Adelaide House, a Primary Care Delivery Centre, both now operational.
Currently SCS and SWHL are trading as development companies. If they were to continue in development mode they would be spending a combined sum of around £640,000 per annum on resources that include general management, chairman, development managers and office managers. The merged company is expected to need resources in the region of £250,000.
Both SCS and SWHL will in reality convert to becoming asset management organisations that will not necessitate any further shareholder funding and the asset management vehicles would make a small profit.
January 12, 2011