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| Version 3 | Version 4 |
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| Southern Health NHS Trust 'paid millions' to Katrina Percy's associates | Southern Health NHS Trust 'paid millions' to Katrina Percy's associates |
| (about 13 hours later) | |
| A troubled NHS trust has paid millions of pounds to companies owned by previous associates of its embattled chief executive, BBC News has learned. | A troubled NHS trust has paid millions of pounds to companies owned by previous associates of its embattled chief executive, BBC News has learned. |
| One firm received more than £5m despite winning a contract valued at less than £300,000, while another was paid more than £500,000 without bidding at all. | One firm received more than £5m despite winning a contract valued at less than £300,000, while another was paid more than £500,000 without bidding at all. |
| Both are owned by former acquaintances of Southern Health NHS Trust's chief executive Katrina Percy. | Both are owned by former acquaintances of Southern Health NHS Trust's chief executive Katrina Percy. |
| The trust said it took its financial responsibilities "very seriously". | The trust said it took its financial responsibilities "very seriously". |
| 'Failure of leadership' | 'Failure of leadership' |
| The BBC has also learned Southern Health has access to the services of former Labour spin doctor Alastair Campbell, after it hired Portland Communications to help with its ongoing problems. | The BBC has also learned Southern Health has access to the services of former Labour spin doctor Alastair Campbell, after it hired Portland Communications to help with its ongoing problems. |
| Mental health trust Southern Health has been under intense scrutiny since an NHS England-commissioned report in December found it failed to investigate the unexpected deaths of hundreds of patients. | Mental health trust Southern Health has been under intense scrutiny since an NHS England-commissioned report in December found it failed to investigate the unexpected deaths of hundreds of patients. |
| A failure of leadership and governance at the trust was blamed for the problems, a conclusion a subsequent CQC report in April agreed with. | A failure of leadership and governance at the trust was blamed for the problems, a conclusion a subsequent CQC report in April agreed with. |
| In light of the criticisms, Katrina Percy, the only chief executive the trust has ever had, has faced widespread calls to resign but has refused to do so. | In light of the criticisms, Katrina Percy, the only chief executive the trust has ever had, has faced widespread calls to resign but has refused to do so. |
| Timeline | Timeline |
| 2006 - Management consultant Chris Martin and Katrina Percy start working together during her capacity as chief operating officer at Surrey and Sussex Hospitals | 2006 - Management consultant Chris Martin and Katrina Percy start working together during her capacity as chief operating officer at Surrey and Sussex Hospitals |
| 2009 - Ms Percy becomes chief executive of Hampshire Community Health Care and Mr Martin follows her, providing coaching and leadership support | 2009 - Ms Percy becomes chief executive of Hampshire Community Health Care and Mr Martin follows her, providing coaching and leadership support |
| 2010 - Mr Martin starts a firm of organisational psychologists called Talent Works Ltd, whose website says they are "experts in culture and behaviour change" | 2010 - Mr Martin starts a firm of organisational psychologists called Talent Works Ltd, whose website says they are "experts in culture and behaviour change" |
| 2010 - In December, Southern Health advertises for management development support. The tender has a value of £288,000, and the contract is to last three years, with an option for a one year extension | 2010 - In December, Southern Health advertises for management development support. The tender has a value of £288,000, and the contract is to last three years, with an option for a one year extension |
| 2011 - Ms Percy joins Southern Health as chief executive and the work is awarded to Talent Works Ltd | 2011 - Ms Percy joins Southern Health as chief executive and the work is awarded to Talent Works Ltd |
| 2014 - The initial three year contract ends and the firm is paid £5.365m - an over-spend approaching 2,000%. The trust chooses to exercise its option for a one-year extension | 2014 - The initial three year contract ends and the firm is paid £5.365m - an over-spend approaching 2,000%. The trust chooses to exercise its option for a one-year extension |
| Now she is facing fresh questions about two former associates, Chris Martin and Paul Gray, whose companies were paid by Southern Health. | Now she is facing fresh questions about two former associates, Chris Martin and Paul Gray, whose companies were paid by Southern Health. |
| Roy Lilley, former chairman of an NHS trust and now a health policy expert, said the overspend on Mr Martin's company was "extraordinary". | Roy Lilley, former chairman of an NHS trust and now a health policy expert, said the overspend on Mr Martin's company was "extraordinary". |
| He said: "It really doesn't look good, and it casts a deep shadow over the people involved and the way in which the trust has been run by the board." | He said: "It really doesn't look good, and it casts a deep shadow over the people involved and the way in which the trust has been run by the board." |
| A former governor at Southern Health, John Green, who has a background in running quality management programmes, said he queried the work that Talent Works was doing at the trust. | A former governor at Southern Health, John Green, who has a background in running quality management programmes, said he queried the work that Talent Works was doing at the trust. |
| "I was fobbed off," Mr Green said. | "I was fobbed off," Mr Green said. |
| "I didn't get any information for well over a year. I believe the spending of public money in the NHS is nothing as accountable to the public as it should be." | "I didn't get any information for well over a year. I believe the spending of public money in the NHS is nothing as accountable to the public as it should be." |
| Paul Gray worked with Ms Percy as director of strategy at Hampshire Community Health Care and his firms made money from the trust without having to bid for a contract. | Paul Gray worked with Ms Percy as director of strategy at Hampshire Community Health Care and his firms made money from the trust without having to bid for a contract. |
| In July 2009, he set up consultancy firm Consilium Strategy Consulting Ltd and in 2014 he formed a second company, Consilium Partners Ltd. Together they have been paid at least £602,000 by Southern Health since 2011. | In July 2009, he set up consultancy firm Consilium Strategy Consulting Ltd and in 2014 he formed a second company, Consilium Partners Ltd. Together they have been paid at least £602,000 by Southern Health since 2011. |
| In a statement, Southern Health said it had "tested the market to ensure value for money in 2011. There has been no increase in rates since this benchmarking exercise took place". | In a statement, Southern Health said it had "tested the market to ensure value for money in 2011. There has been no increase in rates since this benchmarking exercise took place". |
| 'Not unusual' | 'Not unusual' |
| Regarding Talent Works, the trust said: "We fully accept that the original contract for Talent Works was for a sum far less than the eventual spend, however it was made clear in the tender documentation that there would be scope for additional work to be provided. | Regarding Talent Works, the trust said: "We fully accept that the original contract for Talent Works was for a sum far less than the eventual spend, however it was made clear in the tender documentation that there would be scope for additional work to be provided. |
| "The trust's audit committee were aware of the contract overspend but were satisfied that the market rates had been tested and that for a number of reasons, it was in the best interests of the trust for their work to continue." | "The trust's audit committee were aware of the contract overspend but were satisfied that the market rates had been tested and that for a number of reasons, it was in the best interests of the trust for their work to continue." |
| It added that it was "not unusual" both men had worked with Ms Percy "given the specialist services they provide to the NHS". | It added that it was "not unusual" both men had worked with Ms Percy "given the specialist services they provide to the NHS". |
| Regulator NHS Improvement said it had no concerns about how the trust awarded the contracts. | |
| It said: "All NHS organisations have a responsibility to manage their finances and procurement in a way which provides good value for money for patients and for taxpayers. | |
| "The trust has clearly stated that it has fully market tested its contract with Consilium to ensure it delivers value for money. | |
| "We expect all trusts to follow NHS procurement policy and at all times to do what is in the best interests of their patients." |