HEALTH bosses in York and North Yorkshire have spent £3.4 million on severance costs for staff in the latest NHS shake-up.

The York and North Yorkshire Primary Care Trust (PCT) spent more on the reorganisation than any of the 13 other newly-merged trusts in Yorkshire.

Total payments for nine board-level executives totalled just under £2 million at the PCT, with the remainder going to other members of staff The highest pay-out is a pension worth £369,753 for Paul Farrimond, the former director of mental health, at Hambleton and Richmondshire PCT.

Jeremy Clough, chief executive of the former Selby and York PCT, received £110,000 in redundancy payments, while Kay Goodwin, director of Primary Care at the trust, received £142,242.

Staff made redundant can work again for the NHS after one month - but all the PCT's in surrounding areas, including the East Riding PCT, denied any of the employees have been taken back on in any capacity.

The reorganisation, called Commissioning a Patient-led NHS, saw the former Selby and York trust merged with the county's three other PCTs to form the new North Yorkshire and York PCT, which covers the whole county.

In Yorkshire, three strategic health authorities were merged into one body and in a separate move three ambulance services were merged into one.

The Yorkshire Ambulance Service said the cost of staff re-organisation came to £1,049,000, with eight members of staff affected, but refused to give details of individuals, citing confidentiality agreements.

Councillor Christina Funnell, chair of the health overview and scrutiny committee for the City of York Council, said: "Clearly when we have a big reorganisation like that there are going to be costs in terms of redundancies and pensions.

"I hope they will now lead to more effective service delivery for patients and in the long term there will be savings in management costs that can be used to improve patient care.

"As chair of the overview committee I will be monitoring the service delivery of the PCT as far as it affects the people of York."

A spokesman for the North Yorkshire and York Primary Care Trust said: "All payments relating to individuals were based on age, pay scale and length of service.

"While the majority of staff have been able to be redeployed within the new organisation, there have inevitably been some cases where this has not been possible. "In addition there has also been a requirement to make on-going 15 per cent savings in overall management costs; and indications suggest that this figure has been reached, therefore making longer-term recurrent savings."

A strategic health authority spokesperson said: "Yorkshire and the Humber SHA were set the target of reducing management costs by £6.8m by 2007/08.

"The savings target has been met by the SHA and the one-off costs will be recouped through recurrent savings.

"By the end of the next financial year the savings to local taxpayers will exceed these one-off costs, these savings will then continue to accrue each year."

Figures released this week show that in July, the PCT was £6.1 million deeper in debt than the planned budget position - bringing the total debt for this financial year to £12.4 million.

Exit costs of Board executives since April 2006


Jeremy Clough Chief Executive, Selby and York PCT - £110,000

Judi Goddard - director of strategic development and partnerships, Craven, Harrogate & Rural District PCT - £95,425

Jeffrie Strang - director of public health/medical director, Scarborough, Whitby and Ryedale PCT - £330,165

Kay Goodwin, director of Primary Care, Selby and York PCT - £142,242

Early Retirement

Penny Jones - chief executive, Craven, Harrogate & Rural District PCT - £276,225

Garry Millard - director of Mental Health and Social Inclusion, Selby and York PCT - £145,813

Paul Farrimond - former director of mental health, Hambleton and Richmondshire PCT - £369,753

Kevin Pulford, former director of community services, Scarborough, Whitby and Ryedale PCT - £307,830

Lynda Wigley, former director of primary care and public involvement, Craven. Harrogate & Rural District PCT - £215,364

(Pension payments go to the NHS Pensions Agency and not individuals)