clipboard on table Home | Advent of CQC means tougher healthcare regulation

Advent of CQC means tougher healthcare regulation

09 June 2009

The Care Quality Commission (CQC) came into effect in April 2009, and with it tougher healthcare regulation.

Established by the Health & Social Care Act (HSCA) 2008, it brings together the work of the Commission for Social Care Inspection, the Healthcare Commission and the Mental Health Commission, all of which have ceased to operate.

CQC will regulate healthcare and adult social care, whether provided by the NHS, local authorities, private companies or voluntary organisations, and will also protect the rights of people detained under the Mental Health Act.

For the first time, NHS providers such as hospitals and ambulance services must be registered.

From 2010 a new registration system will mean health and adult social care providers must be registered with CQC to show they meet a wide range of essential, common quality standards.

In any transaction where a service registered by CQC is the subject of a sale or management takeover, it is important that the regulatory implications of the sale are fully understood.

Under Section 11 of the Care Standards Act 2000 (the Act), it is the provider of the services - the entity carrying on or managing the service - that must register.

Once registered, the service can remain registered whilst the same provider is carrying on or managing the service. But once the nature of the provider changes, the registration becomes void and the services effectively become unregistered.

On a transfer of assets, the registered business will cease to be carried on and managed by the original provider, and will now be carried on and managed by a new provider - the nature of the provider has changed and as such registration becomes void at the point of sale and the services become unregistered.

Accordingly, the new owner of the business or agency will become the new provider, and must make an application to register the service it is carrying on and managing in accordance with section 11 of the Act.

On a sale of shares, the nature of the provider at the business level has not changed, simply the ownership of the provider itself. Accordingly, the registration of the business/agency remains unchanged.

Note, however, that if the registered manager changes as a result of a transaction (whether a share sale or a transfer of assets), the change needs to be notified to CQC, and a new registered manager registered.

Again, irrespective of the type of transaction, if the ‘Statement of Purpose' changes as part of the transaction, re-registration is required, and the registered manager would need to re-register. The law currently provides that a registered manager is registered for a specific service/purpose only.

If as a result of a transaction the responsible individual changes pursuant to Regulation 30 of the Private and Voluntary Health Care (England) Regulations 2001, CQC must be notified. The obligation is to notify only, although further changes are expected to make this obligation more onerous.

There are different notification requirements for different services such as care homes, adult placement schemes, domiciliary care agencies, and nurses' agencies.

To find out how Shoosmiths can help, please contact us.

Disclaimer
This legal update does not contain a definitive analysis of the law on the topics mentioned and specialist advice should always be obtained.

© Shoosmiths. This page is for general information: it is not legal advice. Please read our full terms and conditions for details of the disclaimers and exclusions which apply.

Are any of the issues in this article giving you a headache? If so, we want to know

Name *

Comments*

The information you provide here will be used solely for the purposes of responding to your query for more information see our privacy policy.