Care Homes

Baroness Bakewell Excerpts

Monday 28th May 2012 Lords Chamber

Asked By

[Baroness Bakewell]

To ask Her Majesty’s Government what plans they have for making sure that care home ownership delivers consistent and long-term care.

[The Parliamentary Under-Secretary of State, Department of Health (Earl Howe)]

My Lords, the Care Quality Commission, as regulator of health and adult social care services in England, is responsible for providing assurance that all care home operators, whether in the public or independent sectors, meet regulations that set essential levels of safety and quality.

[Baroness Bakewell]

I thank the noble Earl for that Answer, but it does not quite meet the background that has arisen since 30 April, when the private equity firm Terra Firma acquired Four Seasons Health Care, which is the largest elderly care provider in the UK. Given that equity firms often favour a short-term business plan model, and in the light of the collapse of Southern Cross, would the Government consider a “fit and proper person” test for care home ownership?

[Earl Howe]

My Lords, I am aware that this idea is circulating. Recent events have taught us that intelligence about the market and scrutiny of providers should be better. However, we are not convinced that a “fit person” test is necessarily the right approach. Having said that, we will be setting out our proposals shortly and we will consult on those, so there will be an opportunity for the sector to input its views. We should bear in mind that anyone who registers with the CQC as a provider of care must by law be of good character and have the necessary experience. The provider is also required to notify the CQC of any convictions or cautions against them and of any voluntary insolvency arrangements involving them.