Leicester, Leicestershire and Rutland (LLR) ICB is to cluster with Northamptonshire ICB in a plan to reduce costs, it has said.
In board meeting papers for its August meeting, LLR ICB set out an update on the transformation of ICBs, which said it and Northamptonshire ICB had proposed a clustering arrangement which has since been approved by NHS England.
It said it was felt that ‘neither organisation was viable on their own given the significant cost reductions’.
However, it said this clustering arrangement was ‘not necessarily a route to a merger’.
This is the latest in a series of merging and clustering moves from across ICBs in England (see map).
ICBs were told in March they must cut their running costs by around 50% by October 2025.
In May it was revealed that the ICB running cost envelope will be reduced to £18.76 per head, and that this target must be reached by the end of Q3 in 2025/26.
The chief executive of NHS England, Sir James Mackey, revealed earlier this year that the variation in spend per ICB per head previously ranged from £49 to just less than £21 per head, therefore targets might be different for different ICBs.
LLR ICB said that it and Northamptonshire’s combined target for cost reductions was £16.7m, or 31% of its running costs.
The ICB added that the changes and reductions should be in place by the end of the third quarter of this financial year, although it added ‘there has been some concerns about the pace of that change and the affordability of any redundancy implications’.
The ICBs has set up a transition committee to oversee and scrutinise the arrangements for the transition and a consultation for a new clustered executive team began on 24 July.
The outcome of this consultation and implementation of the structure will take place in August and September 2025, it added.
‘The appointment of a new Cluster CEO and Chair is being led by NHS England and outcomes of these processes are subject to approval by ministers and NHS England, the outcome of which will be confirmed in the coming weeks,’ the board papers said.
A spokesperson from both ICBs told Healthcare Leader: ‘Clustering’ means that, although both ICBs will continue to exist as separate statutory bodies, in time we will move to work as one – with a single ‘in common’ set of board governance, leadership team and staffing structure.’
In July, a full merger was announced between North West and North Central London ICBs.
