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Client Name: Lancashire Care National Health Service Foundation Trust

Client Details: Healthcare body – Mental Health Foundation Trust

As an aspect of the transition of Lancashire Care NHS Trust to Foundation Trust (FT) status, we advised on the operation of the provisions in the Trust’s PFI contract arrangement relating to the design, construction, financing and provision of facilities management and other non-clinical services in and around Lancaster and Morecambe.  The aim, which was successfully achieved, was to negotiate with the PFI contractor and the Secretary of State for Health, a Deed of Safeguard to ensure that the PFI contractor was not left unpaid if the FT fails to perform its obligations under the PFI contract arrangement.

The process involved careful negotiations between the parties, made more delicate by the tight timescale.

The work was completed in November 2007.  Had the Deed of Safeguard not been agreed in time, the transition of the Trust into Foundation Trust status would have been placed in jeopardy.

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