NHS Professionals, the health service’s in-house staffing agency, is to become a health authority in its own right – with a mandate to drive down NHS spending on temporary recruitment agencies.

The Special Health Authority will provide a national service to the NHS, helping trusts to manage their temporary staffing needs.

It will be in charge of overall NHS strategy towards agencies, managing agency framework contracts and operating the NHS Professionals service.

The trust will be led by a chairman, former Adecco chief executive Richard Martin, and have an independent management board, reporting to the Department of Health.

The department has appointed Carmel Flatley, who previously worked for McDonald’s, to be chief executive in charge of running day-to-day operations.

NHS Professionals will attempt to create more arrangements similar to those created in London, where NHS Professionals provides the first line of cover for NHS trusts. Independent recruitment agencies on a preferred supplier list, with strict conditions on price, would then step in to cover any shortfall in temporary staff.

Health minister John Hutton said: “The establishment of a Special Health Authority will improve the future structure and operational arrangements for NHS Professionals.

The Special Health Authority will give leadership and direction while allowing trusts the flexibility locally to manage their temporary staffing needs.”