Question to the Department of Health and Social Care:

To ask Her Majesty’s Government whether the Care Quality Commission (CQC) has taken any action to review whether the owners of any adult social care provider have intentionally weakened the ability of the care provider to fulfil its duties to patients and other stakeholders by not taking sufficient steps to ensure that the care provider is adequately capitalised; and whether the CQC has taken or prepared action to sanction or initiate legal action in connection with the same.

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.