Shaw and Crompton communities have had a bomb shell delivered that the plug has just been pulled on their new Health Centre at the last minute.

Shaw and Crompton councillors have been informed that a new health centre for Shaw and Crompton is now not affordable, and so Oldham Clinical Commissioning Group (CCG) have axed the scheme.

“Shaw and Crompton councillors have worked incredibly hard to reach the position where this was ready to go, with the site ready to go, capital funding allocated, a developer commissioned, and plans developed.  This is a massive kick in the teeth and a great disappointment to our local community and those who use and work in the current Health Centre,” stated Shaw councillor and Liberal Democrat Group Leader, Howard Sykes.

Shadow Cabinet Member for Heath & Social Liberal Democrat Crompton councillor Louie Hamblett has written to Oldham CCG’s Accountable Officer Mike Barker about the matter.

“Increased costs; as a result of covid, events in Eastern Europe and the cost-of-living crises, are excuses the CCG uses for it now not being affordable and they quote a figure of an increase of half a million pounds in costs,” stated councillor Hamblett.

“We are demanding an urgent meeting so this decision can be justified and fully explained – Shaw and Crompton demands nothing less.  We will not be fobbed off and we now need to negotiate a plan B to get the Heath Centre Shaw and Crompton so rightly deserves, he added. 

“All six councillors will continue, as we have for many years, to campaign for its replacement and to hold those responsible for our local health services to account and make sure they deliver what the Shaw and Crompton community needs and rightly expects.  That is local health faculties fit for purpose with a range of services people expect in the 21^st century.  This is just not possible in the current patched up building that is well past its sell by date,” pledged councillor Sykes.

“On top of this we have hundreds of new homes being built in the area.  Where are these families supposed to go for primary health care?  Our fight and campaign for facilities that enable increased capacity of quality health services continues until this is delivered,” he stated.

Letter from CCG that broke the news

https://www.theoakgablespartnership.co.uk/index.aspx

LETTER FROM CCG

Re Shaw/Crompton Development

I am writing to you inform you of some fundamental changes that have occurred in relation to the proposed capital development of health facilities in Shaw which impact Oak Gables and The Villages Practices.

As you are aware the CCG undertook an exercise to develop Outline Business Cases to secure capital in order to redevelop General Practice facilities. There were a number of General Practices vying for a limited capital allocation at this time.

Capital is a funding source generally used to support significant physical redevelopment programmes and it is allocated directly by the Department of Health and Social Care to CCGs and providers, such as hospitals.

Following a prioritisation exercise the CCG progressed to the development of an Outline Business Case for a proposal to redevelop land to enable the relocation of Oak Gables and The Villages onto a new site and into a new facility. This redevelopment encompassed the drawdown of an earmarked capital allocation that required significant progress to be made by 31 March 2022. On that basis the CCG progressed the Business Case, working as a partnership with the local Authority – Oldham Metropolitan Borough Council, who own the earmarked land, and engaged with the District Valuer and other advisors to support the case.

As you are aware this was completed at a point in time and the recommendation to proceed with the Shaw/Crompton proposal was made in good faith by the CCG. However, I am writing to you today following the decision the CCG has made regarding withdrawing its support for the Shaw/Crompton development yesterday.

As you will no doubt be aware from the daily reports in the national press, our national economy now faces a significant challenge and has major implications in terms of pressure on public finances and dramatic changes in terms of rising prices through inflation. These are now considerable factors impacting our ability to proceed. At the time of developing the Outline Business Case, the organisation was not in a position to foresee what have now become such significant increases, both on cost and inflation. These impacts have materialised over recent weeks as we emerge from the COVID period, and more recently, the impact of the tragic events in eastern Europe. Such was the materiality of the change that this needed to be reported to the CCG senior management team earlier this week. Although the capital allocation remained available and the land continues to be available, the increase in revenue costs, in excess of an additional £500,000, make the proposal unaffordable and hence the decision to halt this particular Outline Business Case.

We recognise that this is not a position which is of the making of any organisation but is unfortunately where we find ourselves. The CCG cannot knowingly or willingly enter into an agreement that would be so materially different from the original business case and accept the withdrawing of funding from other parts of Oldham’s health and care service lines. That would be wholly unfair to other communities and we fear risk leaving some vulnerable people without adequate service and care support.

We have spoken with colleagues in the Council and are satisfied that the Council remain committed to working with us to secure such a facility for Shaw. However, the format of this Business Case cannot and will not proceed within this cost envelope now on the table.  We now need to pause and reflect on next steps and understand what other options we may have available and over what timescale to continue to seek to secure a new facility for Shaw. 

We will be in touch when we are in a position to resume the conversation following consideration of the availability of wider system capital and revenue resources for both this proposal and others in Oldham.G

Your understanding in this matter is appreciated.