Agenda item

This report sets out a request from Seaton Area Health Matters (SAHM) for the Council to purchase Seaton Hospital under special arrangements for public bodies direct from NHS Property Services. 

The report set out a request from Seaton Area Health Matters (SAHM) for the Council to purchase Seaton Hospital under special arrangements for public bodies direct from NHS Property Services. To be passed directly to SAHM (being set up as Charitable Incorporated Organisation - CIO) in a back to back legal agreement. The funding of the purchase would be met by the CIO through a 40-year loan from the Council with all costs recovered by the Council and with the necessary loan security being put in place. The estimate loan amount will up to £2.1m being the balance required after other funds being applied by CIO to meet the purchase cost.

The Portfolio Holder Asset Management set out the aims of SAHM and how EDDC was the conduit for access to the PWLB funding. He reminded members at this stage an agreement in principal was just being asked for. He suggested amending the recommendation to require a report to come back to the Cabinet supported by a full business case for the Cabinet to take the view as to whether to recommend the loan to Council.

Discussions included the following:

·       The hospital had already lost its inpatient beds and was not safe in the hands of NHS Property Services, there was a risk of losing the building if it was not protected. This was matter of principal

·       The report at this stage was just asking for an agreement in principal and would come back to Cabinet for further debate once they was a more concise business plan

·       This was an excellent opportunity – a trailblazer

·       The need to look at the risks when underwriting such a loan

·       Why wasn’t Devon County Council (DCC) with an established track record as well as the legal expertise with working with the NHS?

·       In the interim period to get the proposed users in the hospital in order to add validity to the business plan

·       The need to slow down on such a  decision and look at different ways of working with all health provision across the whole area

·       This was the whole ethos of what the council was about in engaging and supporting its residents as well as looking after their health and wellbeing

·       The Budleigh Salterton Health Hub had not generated as much income as had been expected, caution was needed

·       This was a big commitment. A rigorous business plan tested by external bodies for heavy risk analysis was necessary

·       More detail was required. There was a duty to the taxpayer for assurance that the loan would be repaid

·       Was this robust and sustainable – would the council foreclose if the loan was defaulted

·       DCC was the statutory body to deliver health and social care, why could they not access a PWLB loan?

·       The residents of Seaton had already financially contributed to the hospital and would most likely continue to do so

·       The arrangement was complimentary to what was trying to be achieved across the Axe Valley area

·       If the recommendation was agreed other possible proposals from community hospitals would have to be considered in the same manner. The Town Council could apply for a PWLB loan

·       It appeared to be all risk and no reward. Would the NHS guarantee the borrowing?

·       Concern in supporting one hospital when there were others in the district

·       DCC should be getting more involved

·       This was not in the council plan or a council priority however there was a need to find the right route to keep the hospital

The Portfolio Holder Asset Management withdrew from the vote as he had a personal interest in the matter.

The Chairman and Portfolio Holder Environment thanked Councillors Pook and Rowland for their efforts in getting the matter this stage.

RESOLVED:

1.    that the significant importance of the future use of Seaton Hospital as a medical facility serving the triangular health hub area of Seaton, Axminster and Lyme Regis be endorsed, and

2.    that SAHM make direct contact with DCC councillors responsible for health care to get their expertise and influence and help in obtaining funding.

REASON:

A proposal had been submitted for the Council to facilitate the creation of a community Health Hub in Seaton.