Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department of Health and Social Care:
To ask Her Majesty’s Government, further to the Written Answer by Lord Prior of Brampton on 15 December 2016 (HL3810), how many care home providers are currently subject to the Care Quality Commission’s (CQC) Market Oversight Scheme where the CQC is exercising enhanced oversight of the financial sustainability of the care provider.
Answered by Lord O'Shaughnessy
There are currently 49 providers in the Market Oversight scheme, of which 38 are care home providers.
The Care Quality Commission (CQC) have no right of veto in ensuring that a care group is adequately capitalised as this falls outside of the CQC’s regulatory remit. However, financial viability is considered in relation to all providers when they apply for registration with the CQC. The CQC will refuse registration if providers cannot demonstrate that they have the financial resources needed to provide and continue to provide the services as described in their statement of purpose and to the required standards. This assessment is made in relation to the applicant who will be a Registered Provider, but will not necessarily be the owner, as set out in the question. The CQC’s powers of enforcement are limited to Registered Providers. In all circumstances where poor care is identified during an inspection, the CQC will act to protect service users, whatever the cause, and this could include financial stress.
Asked by: Lord Myners (Crossbench - Life peer)
Question to the Department of Health and Social Care:
To ask Her Majesty’s Government what assessment they have made of the debt levels of Four Seasons Health Care; whether they have any plans to intervene to protect the interests of patients; and whether they are able to require the company's private equity owner to invest new equity.
Answered by Lord Prior of Brampton
Adult social care is largely delivered through an independent sector of care provider organisations that operate in a competitive market. As with any market, some providers enter and exit, which is an important mechanism for driving up quality and effectiveness. Market exits are regular occurrences and are handled effectively by local government.
It is of course vital that vulnerable people with care needs do not have their services interrupted if their care provider failed financially and services stop. The Care Act 2014 introduced new duties on local authorities and the Care Quality Commission (CQC) to protect and reassure people with care needs, their families and friends. The Act places a duty on all local authorities in England to temporarily step in and make sure all people in their area continue to have their needs met, regardless of who pays for their care. Recognising that local authorities might struggle if a significant provider were to fail, the CQC has a new function to oversee and monitor the financial sustainability of the largest and most difficult to replace providers. The oversight function provides an early warning to relevant local authorities in the event that one of these providers is likely to fail and their services cease.
Four Seasons Health Care is one of the providers that because of their size, is part of the CQC’s Market Oversight Scheme. CQC continues to monitor the finances of all of the providers in the scheme. Government has no powers to require a private company that is acting lawfully to change its financial approach.
The Care Act 2014 also places new duties on local authorities to promote their local market to ensure all service users have a choice of high quality services available.