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Health and Social Care (Community Health and Standards) Bill


Health and Social Care (Community Health and Standards) Bill
Part 1 — NHS foundation trusts

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A

Bill

[AS AMENDED IN COMMITTEE]

To

Amend the law about the National Health Service; to make provision about

quality and standards in the provision of health and social care, including

provision establishing the Commission for Healthcare Audit and Inspection

and the Commission for Social Care Inspection; to amend the law about the

recovery of NHS costs from persons making compensation payments; to

provide for the replacement of the Welfare Food Schemes; to make provision

about appointments to health and social care bodies; and for connected

purposes.                                                                            

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

Part 1

NHS foundation trusts

Introductory

 1     NHS foundation trusts

     (1)    An NHS foundation trust is a public benefit corporation which is authorised

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under this Part to provide goods and services for the purposes of the health

service in England.

     (2)    A public benefit corporation is a body corporate which, in pursuance of an

application under this Part, is constituted in accordance with Schedule 1.

 2     Independent Regulator of NHS Foundation Trusts

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     (1)    There is to be an officer known as the Independent Regulator of NHS

Foundation Trusts (referred to in this Part as “the regulator”).

 
HL Bill 11353/2
 
 

Health and Social Care (Community Health and Standards) Bill
Part 1 — NHS foundation trusts

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     (2)    The Secretary of State is to appoint a person to the office of regulator.

     (3)    Schedule 2 (which makes further provision about the regulator) has effect.

 3     General duty of regulator

The regulator must exercise his functions in a manner that is consistent with

the performance by the Secretary of State of the duties under sections 1, 3 and

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51 of the National Health Service Act 1977 (c. 49) (duty as to health service and

services generally and as to university clinical teaching and research).

Authorisation

 4     Applications by NHS trusts

     (1)    An NHS trust may make an application to the regulator for authorisation to

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become an NHS foundation trust, if the application is supported by the

Secretary of State.

     (2)    The application must—

           (a)           describe the goods and services which the NHS trust proposes should

be provided by the NHS foundation trust, and

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           (b)           be accompanied by a copy of the proposed constitution of the trust;

            and must give any further information which the regulator requires the NHS

trust to give.

     (3)    The applicant may modify the application with the agreement of the regulator

at any time before authorisation is given under section 6.

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     (4)    Once an NHS trust has made the application—

           (a)           the provisions of the proposed constitution which give effect to

paragraphs 3 to 18 of Schedule 1 have effect, but only for the purpose

of establishing the initial membership of the NHS foundation trust and

of the board of governors, and the initial directors, and enabling the

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board of governors and board of directors to make preparations for the

performance of their functions,

           (b)           the NHS trust may do anything (including the things mentioned in

paragraph 16 of Schedule 2 to the National Health Service and

Community Care Act 1990 (c. 19) (general powers)) which appears to it

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to be necessary or desirable for the purpose of preparing it for NHS

foundation trust status.

 5     Other applications

     (1)    An application may be made to the regulator by persons (other than an NHS

trust) to be incorporated as a public benefit corporation and authorised to

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become an NHS foundation trust, if the application is supported by the

Secretary of State.

     (2)    The application must—

           (a)           describe the goods and services which the applicants propose should

be provided by the trust, and

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           (b)           be accompanied by a copy of the proposed constitution of the trust;

 

 

Health and Social Care (Community Health and Standards) Bill
Part 1 — NHS foundation trusts

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            and must give any further information which the regulator requires the

applicants to give.

     (3)    If it appears to the regulator that—

           (a)           provision of the goods and services described in the application is

likely to assist in the performance of the duties mentioned in section 3,

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           (b)           the trust as proposed to be constituted will be able to provide those

goods and services, and

           (c)           the proposed constitution accords with Schedule 1 and is otherwise

appropriate,

            he may issue a certificate of incorporation.

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     (4)    The applicants may modify the application with the agreement of the regulator

at any time before the certificate is issued.

     (5)    On the issue of the certificate, the applicants are incorporated as a public

benefit corporation.

     (6)    The certificate is conclusive evidence of incorporation.

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     (7)    Once the certificate has been issued—

           (a)           the proposed constitution has effect, but the applicants may exercise

the functions of the corporation on its behalf until a board of directors

is appointed in accordance with the constitution,

           (b)           the corporation may do anything (including the things mentioned in

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section 18) which appears to it to be necessary or desirable for the

purpose of preparing it for NHS foundation trust status.

 6     Authorisation of NHS foundation trusts

     (1)    The regulator may give an authorisation under this section—

           (a)           to an NHS trust which has applied under section 4, or

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           (b)           to a public benefit corporation,

            if he is satisfied as to the following matters.

     (2)    The matters are that—

           (a)           the applicant’s constitution will be in accordance with Schedule 1 and

will otherwise be appropriate,

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           (b)           taken as a whole the actual membership of the applicant’s public

constituency will be representative of those eligible for such

membership,

           (c)           there will be a board of governors, and a board of directors, constituted

in accordance with the constitution,

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           (d)           the steps necessary to prepare for NHS foundation trust status have

been taken,

           (e)           the applicant will be able to provide the goods and services which the

authorisation is to require it to provide, and

           (f)           any other requirements which he considers appropriate are met.

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     (3)    The authorisation may be given on any terms the regulator considers

appropriate.

     (4)    If regulations require the applicant to consult prescribed persons about the

application, the regulator may not give an authorisation unless he is satisfied

that the applicant has complied with the regulations.

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Health and Social Care (Community Health and Standards) Bill
Part 1 — NHS foundation trusts

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     (5)    The regulator must send a copy of the authorisation to the registrar of

companies.

     (6)    The generality of the power in subsection (3) is not affected by the following

provisions of this Part.

 7     Effect of authorisation

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     (1)    On an authorisation being given to a body corporate which is an NHS trust—

           (a)           it ceases to be an NHS trust and becomes an NHS foundation trust,

           (b)           the proposed constitution has effect.

     (2)    In consequence of subsection (1)(a), any order made under section 5(1) of the

1990 Act (establishment of the NHS trust) is revoked.

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     (3)    On an authorisation being given to a body corporate which is a public benefit

corporation, it becomes an NHS foundation trust.

     (4)    The authorisation is conclusive evidence that the body in question is an NHS

foundation trust.

     (5)    Subsections (1) to (3) do not affect the continuity of the body or of its property

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or liabilities.

     (6)    An NHS foundation trust is not to be regarded as the servant or agent of the

Crown or as enjoying any status, immunity or privilege of the Crown; and the

trust’s property is not to be regarded as property of, or property held on behalf

of, the Crown.

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 8     Amendments of constitution

     (1)    An NHS foundation trust may make amendments of its constitution with the

approval of the regulator.

     (2)    An NHS foundation trust must send a copy of its constitution, and any

amendment of it, to the registrar of companies.

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 9     Variation of authorisation

     (1)    The regulator may vary an authorisation.

     (2)    In deciding whether or not to vary an authorisation the regulator is to have

regard (among other things) to—

           (a)           any report or recommendation made to him by virtue of section 21(2)(f)

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of the Local Government Act 2000 (c. 22) (overview and scrutiny

committees),

           (b)           any report or recommendation made to him by the Commission for

Patient and Public Involvement in Health under section 20(5)(b) or (6)

of the National Health Service Reform and Health Care Professions Act

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2002 (c. 17).

     (3)    The regulator must send a copy of any variation of the authorisation to the

registrar of companies.

 

 

 
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