A leading management consultancy firm is to be paid £1m to help ‘design' how the new NHS regulator will work.

Monitor, the regulator of foundation trusts, and the Trust Development Authority (TDA), are to merge their functions and KPMG has won a contract to advise on restructuring the new organisation, which is to be called NHS Improvement. It will produce a draft organisation structure by December and a ‘comprehensive operating model' by February next year.