St George’s Healthcare NHS Trust have decided that they cannot proceed with their bid to merge with St Helier and Sutton Hospitals.

However, due to the financial challenges facing hospitals in south west London and the inability to pre-empt the outcome of the Better Services Better Value review, which is looking at how NHS services are provided across south west London, they do not feel able to proceed at this time. This is because the review, which will be open to public consultation, could have a significant impact on the financial income of all hospitals involved.

St George’s Hospital have however expressed a full commitment to working closely with St Helier and Sutton Hospitals in the future.  Jan Sawkins is the Independent Chair of the special Board set up to help St Helier, Sutton and Epsom hospitals to achieve foundation trust status. She said: “Whilst we have always been aware that a bidder could withdraw during the process, at this stage in the transaction it is obviously very disappointing news.

“The Transaction Board has a meeting scheduled (7 February 2012) and we will use this to consider the options and agree a way forward. This may include re-opening tenders for St Helier and Sutton hospitals.”

Matthew Hopkins, Trust Chief Executive said: “This is disappointing news, but St George’s have been clear to us that their decision is not based on our staff, nor the quality of the services we provide at St Helier and Sutton hospitals.

“As you would expect, the Trust Board and those working on the transaction have been looking at other options in case this happened and we look forward to discussing these with the Transaction Board next week. Whilst we are making decisions about the long-term future of our hospitals, our priority will – as ever – continue to be ensuring our patients and local people receive the very best services.”

Asked what this means for Epsom Hospital, Jan added: “It is the current belief that, subject to Ashford and St Peter’s Hospitals NHS Foundation Trust being confirmed as the Preferred Partner for Epsom Hospital, the de-merger could continue whilst we make alternative arrangements for St Helier and Sutton.

“Whilst this would, of course, need further investigation and approval by the Transaction Board, the Trust Board and others, it is felt that this would be in the best interest of Epsom Hospital, its patients, staff and local people. However, I would emphasise that the priority remains to secure the future of Epsom, St Helier and Sutton hospit