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Detail of outcome
The Government has decided not to go ahead with the introduction of a Health Special Administration regime for independent providers in April 2014.
This means that if an independent provider of commissioner requested services (CRS) becomes insolvent, they would not be placed in a special administration regime in order to safeguard essential services. Monitor and, where necessary, the Department of Health will seek to work with the provider and relevant organisations to determine the right solution and ensure patients have access to the services they need.
Currently, there is not enough information on which services provided by independent providers are considered to be CRS. This information is likely to become available over the next few years, after which we may review the implementation of a Health Special Administration regime.
Further details supporting this decision are set out in the consultation response document.
The government wants your views on how safeguards to protect the services that patients need will be extended to NHS services provided by social enterprises and other companies.
For the first time, the services provided by these organisations will be secured if they go out of business. This will ensure that, regardless of the type of provider, patients will receive an uninterrupted service.
Health special administration is intended as a last resort where earlier action, operating through Monitor’s licensing regime, has either not worked or is not considered appropriate to protect the interests of patients.
Monitor will be able to seek the appointment of a health special administrator, who will take control of the company, working with local health professionals so that services can continue.
Currently, if a company that provides NHS healthcare goes out of business and can no longer provide services, there are few safeguards in place to ensure that patients can still access those services.