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Monitor takes on new powers to protect patient services at failing hospitals

Yesterday Monitor takes on a series of new powers under the Health and Social Care Act 2012 to enable the regulator to protect patient services at failing hospitals.

The new Trust Special Administration regime enables Monitor to appoint administrators to work with local commissioners to ensure that services are protected if a trust becomes insolvent. This regime is designed to protect patient services ahead of creditors if trusts break down financially.

Under the Trust Special Administration system, options for the continued provision of services include restructuring the existing service provider, using other providers to continue services at existing sites, relocating services to other local providers, or bringing in new providers such as an out-of-area provider wanting to expand.

In line with these powers, Monitor will shortly be issuing a tender through the Official Journal of the European Union to draw up a short list of administrators who could be called upon to carry out the Trust Special Administration process. Monitor intends to have a list of administrators in place who have the skills and expertise necessary to run a trust which is experiencing serious financial problems and work with local stakeholders to decide how to protect important services for patients.

Under the Secretary of State’s commencement order which started yesterday, Monitor also takes on other powers to help prepare for important parts of its new regulatory responsibilities which start in 2013. These powers include giving the regulator the authority to assign special conditions to individual licence holders and the ability to consult on how it will enforce compliance when providers fail to meet licence conditions.

Monitor’s new executive team took up their posts yesterday to oversee Monitor’s new role as sector regulator.

The team, led by Chief Executive David Bennett, includes:

  • Executive director of assessment: Miranda Carter
  • Managing director of provider regulation: Stephen Hay
  • Managing director of sector development: Adrian Masters
  • Executive director of co-operation and competition: Catherine Davies
  • Executive director of legal services: Kate Moore
  • Executive director of strategic communications: Sue Meeson

Monitor is also recruiting an executive director of patient and clinical engagement and an executive director of organisational transformation.

Monitor has also appointed four regional directors in the Provider Regulation Directorate whose responsibilities will align with the structure of the Care Quality Commission and the NHS Commissioning Board. They are Adam Cayley (Midlands/East region), Yvonne Mowlds (North Region), Frances Shattock (South Region) and Mark Turner (London Region).

Notes to Editors

A link to the commencement order can be found here: http://www.legislation.gov.uk/uksi/2012/2657/contents/made  

The Trust Special Administration regime applies to Foundation Trusts and is not a court based insolvency process. The Department of Health is consulting today on the Health Special Administration regime which will apply to social enterprises, companies and some charities providing services to NHS. This will be a court based process in accordance with the Insolvency Act. Please find further information here http://healthandcare.dh.gov.uk/hsa-consultation

An introduction to Monitor’s new role can be found here: http://www.monitor-nhsft.gov.uk/monitors-new-role/-introduction-monitors-new-role

For further information please contact Isabella Sharp on Isabella.sharp@monitor-nhsft.gov.uk or 020 7340 2442.

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