Anger at Conquest

Bexhill and Battle Member Gregory Barker says he is "furious" at what he describes as an abuse of public money.

The Trust has been awarded only one performance star and is nearly 3m in the red. It needs to cut 17m of spending by March.

Yet 135,000-a-year chief executive Annette Sergeant - to be replaced next month by Kim Hodgson - is said to be in line for a 300,000 pay-off.

Mr Barker has tackled Trust chairman John Lewis directly on the issue and says he will take it up with the Secretary of State if the Trust pays more than the six-month contractual severance figure.

Asked what he understood the position to be and what action he proposed taking, Gregory Barker said: "My understanding is that following the failure of the chief executive and senior management to keep a grip on the financial crisis at the Conquest that has been going on for months if not years now the non-executives (on the Trust board) acted to remove Annette Sergeant in mid-summer.

"In my view they were absolutely right to do so.

"Being chief executive of any large organisation like East Sussex Hospitals NHS Trust is no easy job and it requires the person in that role to perform.

"That performance clearly has not been met.

"Therefore, I cannot understand that in the process of letting her go why anything other than the minimum contractual severance should be paid.

"As I understand it, this should run into tens of thousands of pounds - or up to six months salary - certainly not the ludicrous sum that has been speculated.

"It is clear that the Trust are negotiating way beyond Miss Sergeant's legal entitlement - with OUR money!

"I am furious that anyone could walk away from this situation with a huge pay-off and leave the local hospital in financial crisis.

"I have made my views known directly to the chairman of the Trust, John Lewis, and if he and his non-executive colleagues refuse to take heed I will raise this matter directly with the Secretary of State for Health.

"We know that Miss Sergeant had friends in high places, coming from the Department of Health, but there can be absolutely NO excuse for such a shameful abuse of taxpayers' money."

Asked if he was prepared to work in concert with Parliamentary colleagues on the matter, Mr Barker said: "I know that both Michael Foster (Labour, Hastings and Rye) and Nigel Waterson (Conservative, Eastbourne) are equally appalled at the prospect of Miss Sergeant walking away with such a massive pay-off and I will look to work with all my colleagues to ensure that the best interests of local people are served."

Asked if he was happy about the process by which Annette Sergeant's successor was appointed, he said: "I do know that it was an abbreviated process, because of the emergency situation.

"Clearly, given the financial crisis at the Conquest, it is not in the public interest that the Trust should be left without a chief executive and I can appreciate why the Trust felt it necessary to act quickly to find a replacement.

"I look forward to meeting Miss Hodgson shortly and wish her well in her appointment."

In answer to Observer questions this week, Trust issued the following statement: "Any discussions between the Trust and Annette Sergeant are confidential.

"She remains on our payroll as an employee absent for personal reasons. As such has not carried out the duties of Chief Executive for some time and David Townsley is acting Chief Executive until Kim arrives in October.

"The Strategic Health Authority has supported the Trust in making this appointment in this way because of the extenuating circumstances and the effect a further delay would have. The Trust is very grateful for this support. The chairman will work together with Kim to determine when the Trust will implement the standard appointment process."

Trust chairman John Lewis added: "Annette Sergeant remains in the Trust's employment but is absent for personal reasons. We can make no further comments on this situation until we have completed the discussions. Meanwhile, we have agreed to pursue discussions with others about the leadership of the Trust and I am therefore happy to announce Kim Hodgson's appointment."

KIM Hodgson takes up her new post as chief executive of East Sussex Hospitals NHS Trust on October 10.

She is currently deputy chief executive and director of operations at East Kent Hospitals NHS Trust.

East Sussex Trust chairman John Lewis said: "We are very pleased to appoint Kim Hodgson as our new chief executive. Her experience and leadership will play a vital role in developing the Trust in the years ahead."

Kim Hodgson said "I'm delighted to have been asked to lead the Trust and I look forward to meeting and working with staff at the Trust.

"I am very confident that the Trust has the capability to rise to the challenges it faces. I want to set a clear strategic direction for the Trust and work with partners in local health and social care to develop services for local people."

Kim's career in the NHS started immediately after leaving school where she worked as a nurse for ten years, progressing to a senior sister position at, among other hospitals, Westminster and the Royal Free in London.

On entering senior management she continued to study and obtained a MSc in Management and a PhD in organisational development. In 2004, she won the prestigious title of Manager of the Year at the National Health and Social Care Awards. Before working at East Kent, she had worked at Derriford Hospital, Plymouth, one of the largest hospitals in the country.

John Lewis Chairman said, "Annette Sergeant remains in the Trust's employment but is absent for personal reasons. We can make no further comments on this situation until we have completed the discussions. Meanwhile, we have agreed to pursue discussions with others about the leadership of the Trust and I am therefore happy to announce Kim Hodgson's appointment."