Independent Hospitals (Scotland) Act 2018 1

MODEL
SCOTTISH PARLIAMENT

Independent Hospitals (Scotland) Bill

SP Bill 56

(as introduced)

An Act of the Scottish Parliament to prohibit the operation of an independent hospital; to establish
public ownership and control of existing independent hospitals; and for connected purposes.

Operation of an independent hospital

1 Prohibition of operation of independent hospitals

(1) The National Health Service (Scotland) Act 1978 is amended as follows.
(2) After section 10G, insert—
“10GA Independent hospitals: prohibition
(1) It is an offence for a person to operate, carry on, manage, or offer the services of an
independent hospital.
(2) A person guilty of an offence under this section is liable—
(a) on summary conviction, to a fine not exceeding the statutory maximum;
(b) on conviction on indictment, to a fine.
(3) Nothing done by the Scottish Ministers constitutes an offence under this section.
(4) In this section, “independent hospital” means a hospital which is not a health service
hospital or a state hospital, but includes part of such a hospital if—
(a) it is carried on as a separate unit;
(b) it does not provide treatment or nursing in pursuance of this Act;
(c) no part of it is contained within the same building as any such part which does
provide treatment or nursing in pursuance of this Act.
(5) The Scottish Ministers may by regulations modify subsection (4) so as to vary the
definition of an independent hospital.
(6) Regulations under subsection (5) are subject to the affirmative procedure.”
(3) In section 10F (meaning of “independent health care services”)—
(a) omit paragraphs (a) and (b) of subsection (1);
(b) omit the definitions of “independent hospital” and “private psychiatric hospital” in
subsection (2).
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Public acquisition of existing independent hospitals

2 Transfer and distribution of assets

(1) The assets described in the schedule are transferred to and vest in the Scottish Ministers
on the day appointed by the Scottish Ministers in regulations under this subsection.
(2) In this Act—
(a) “transfer day” means the day appointed for the purposes of subsection (1);
(b) “acquired asset” means any asset vested in the Scottish Ministers by virtue of that
subsection.
(3) The Scottish Ministers may by regulations provide for an acquired asset to be transferred—
(a) to the Health Board in whose area the asset is located,
(b) to a Special Health Board, or
(c) to the Common Services Agency.
(4) Regulations under this section are subject to the negative procedure.

3 Transfer and distribution of employees

(1) The contract of employment of an independent hospital employee has effect from and after
transfer day as if it were originally made between the employee and the Scottish Ministers.
(2) If, before transfer day, an independent hospital employee notifies the Scottish Ministers
that the employee does not wish to become an employee of the Scottish Ministers—
(a) subsection (1) does not apply in relation to the independent hospital employee, and
(b) the employee’s contract of employment is terminated on transfer day.
(3) An independent hospital employee is not to be treated for any purpose as being dismissed
as a result of the operation of this section in relation to the employee.
(4) Regulations under section 2(3) may provide for the transfer to a body mentioned in that
subsection of a person transferred to the Scottish Ministers by virtue of subsection (1).
(5) For the purposes of this section, “independent hospital employee” means an employee—
(a) of a person on whom the Scottish Ministers have served notice for the purposes of
this paragraph before transfer day,
(b) employed for or in connection with the operation of an independent hospital, and
(c) meeting such other conditions as may be specified in the notice.
(6) The Scottish Ministers may only serve notice under subsection (5)(a) on a person who—
(a) operates, carries on, manages, or offers the services of an independent hospital, or
(b) employs persons for or in connection with the operation of an independent hospital
or other asset described in the schedule.

4 Ascertainment of which assets acquired

Any question as to what is or is not to be included in the assets described in the schedule
is to be determined by a member or fellow of the Royal Institution of Chartered Surveyors
appointed by the Court of Session.

5 Compensation for acquisition

(1) The Scottish Ministers must make compensation in respect of each acquired asset.
(2) The amount of the compensation to be made is 120% of the value of the acquired asset, as
Independent Hospitals (Scotland) Act 2018 3

determined by the assessor appointed under section 27 of the Local Government etc.
(Scotland) Act 1994 for the local authority area in which the asset is located on transfer day.
(3) The Scottish Ministers must make a payment to each person who gives them notice under
section 3(2).
(4) The amount of the payment under subsection (3) is to be determined as follows—
Step 1
Identify the remuneration typically paid to the employee in any period of one month.
Step 2
Where the employee is paid in respect of a period other than a month, substitute for the
identified amount the equivalent monthly amount (where a month is taken to be 30.44
days).
Step 3
Multiply that amount by 2.25.

General

6 Report on operation of this Act

The Scottish Ministers must, before the expiry of the period of two months beginning with
transfer day, lay before the Scottish Parliament a report as to—
(a) the acquired assets which are, in their view, significant,
(b) the actions they propose to take under sections 2(3) and 3(4), and
(c) the amounts they expect to pay under section 5.

7 Ancillary provision
(1) The Scottish Ministers may by regulations make such incidental, supplementary,
consequential, transitional, transitory, or saving provision as they consider necessary or
appropriate for the purposes of, in connection with, or for giving effect to this Act.
(2) Regulations under this section may modify any enactment (including this Act).
(3) Regulations under this section are subject to the affirmative procedure.

8 Intepretation
In this Act—
“1978 Act” means the National Health Service (Scotland) Act 1978;
“Common Services Agency” means the body constituted under section 10 of the 1978 Act;
“Health Board” and “Special Health Board” have the same meaning as in the 1978 Act;
“independent hospital” has the meaning given in section 10GA of the 1978 Act.

9 Commencement
(1) Section 1 comes into force on transfer day.
(2) The other provisions of this Act come into force on the day after Royal Assent.

10 Short title
The short title of this Act is the Independent Hospitals (Scotland) Act 2018.
4 Independent Hospitals (Scotland) Act 2018

SCHEDULE
ASSETS TRANSFERRED TO THE SCOTTISH MINISTERS

Descriptions of assets

1 Interests in or over land and heritable and moveable property in Scotland primarily used for,
at, in, or in connection with the operation of an independent hospital.

2 Interests in land and heritable and moveable property in Scotland ancillary to an asset falling
within the description in paragraph 1.

3 Interests in supplies of materials, medicines, or substances of any kind stored on or within

any asset falling within paragraphs 1 or 2 or held in Scotland solely for or in connection
with the operation of an independent hospital.

4 Interests of a person who operates, carries on, or manages an independent hospital in—
(a) materials and equipment for the manufacture of medicines or other substances used
for or in connection with medical treatment in an independent hospital; and
(b) land and heritable and moveable property used for or in connection with the operation
of an independent ambulance service that is associated with an independent hospital,
associated with assets of a description falling within paragraphs 1 or 2, or is located
on or within such assets.

Interpretation

5 In this schedule—
“independent ambulance service” has the meaning given in section 10F of the 1978 Act;
“interest” does not include a mortgage estate or other interest held by way of security.