Chief of ailing NHS venture to quit post

Steve Barnett yesterday announced that he would quit as chief executive of the NHS Confederation next month.

The move comes two months after the Yorkshire Post exclusively revealed how the confederation's business arm NHS Employers, which employs 120 staff mainly based in Leeds, was expected to run up losses of 3.4m in an ambitious venture to sell human resources services to the NHS.

His departure follows that of NHS Employers director Sian Thomas who resigned last month.

Yesterday Mr Barnett said his decision would allow the confederation, which is the national voice for NHS and other health managers, to move forward under a new senior team. "While I cannot and should not accept responsibility for the actions or omissions of others, I have never shied away from or attempted to dispute the fact that accountability for oversight should properly rest with me as chief executive officer," he said.

Auditors have criticised procedures at the confederation after an investigation uncovered evidence that it was exposed to significant financial risks in taking forward the project.

They also discovered trustees of the confederation had not been given the full picture over the venture which saw fewer than 20 organisations expressing an interest in buying "pay-as-you-go" human resources services.

Ms Thomas last month took up a leading role at a new social enterprise offering human resources services to bodies including the NHS under a model which closely resembles plans drawn up by NHS Employers.