FCI founding partner warns clinical informatics body may face bankruptcy

The chairman and trustees of the Faculty of Clinical Informatics have been warned by a founding member that FCI must take immediate steps to overcome its financial woes and may already be insolvent.

In an email exchange with Digital Health News on Tuesday, FCI CEO Ken McInnes denied the risk of collapse.

However, in an open letter sent today and shared with Digital Health News, clinical informatics academic Professor Angus Wallace, a founding member of the FCI, has warned ahead of a crucial meeting: are responsible for financial stability” and continues, “I am deeply concerned about the present financial condition of FCI”.

Professor Wallace says he understands that FCI’s financial position has deteriorated rapidly over the past two years, after failing to secure the renewal of its grant from Health Education England.

“I understand the total amount held by FCI has now reduced from £284,394 (in December 2021) to around £40,000 currently.” The FCI says this figure is incorrect and that it had £56,000 on 30 June.

The FCI, which previously relied on a £250,000 annual grant from Health Education England and an annual membership fee that has already been collected for 2023, is believed to have no real prospect of new revenue until 2024, while liabilities Faced with it cannot be met, it has already had to cut all staff other than the CEO.

Before the open letter was published, McInnes told Digital Health News on Tuesday that FCI is solvent and not going to collapse: “FCI has a membership subscription and consulting income with respect to funding, which means that even if Whether or not it receives money from the NHSE, it will survive and deliver member benefits well into the future, so there is no danger of any imminent collapse or that it will not be able to continue in the short term.”

Professor Wallace says: “Apart from the Chief Executive, I understand that there are no other staff employed by FCI now. The CEO will therefore no longer be able to “provide a service to its members” for the remainder of this year.

FCI employs a chief executive whose salary and overheads are estimated to total £100,000 per annum. Wallace says: “If he remains in office until October, a sum of about £25k will be needed.”

Professor Wallace warns that even the FCI’s annual scientific conference now looks unviable, creating another liability.

“It is now likely that the annual scientific conference scheduled for November 2023 may no longer be financially viable. If it is cancelled, I understand there will be a cancellation fee of £35k.

He concludes: “If this information is accurate, it means that FCI is on the verge of bankruptcy or is already bankrupt.”

They suggest that the trustees immediately appoint an insolvency adviser, cancel the annual scientific conference and now send a “serious incident report” to the Charity Commission, with the “main categories of reportable incident” being “significant financial loss”.