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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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 19    Information

     (1)    An authorisation—

           (a)           must require an NHS foundation trust to disclose such information as

the Secretary of State specifies to the regulator,

           (b)           may require an NHS foundation trust to disclose other information to

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the regulator.

     (2)    The regulator may require any other health service body to disclose any

information to him which he requires for the purposes of his functions.

 20    Entry and inspection of premises

An authorisation may require an NHS foundation trust to allow the regulator

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to enter and inspect premises owned or controlled by the trust.

 21    Fees

An authorisation may require an NHS foundation trust to pay a reasonable

annual fee to the regulator.

 22    Trust funds and trustees

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     (1)    The Secretary of State may by order provide for the appointment of trustees for

an NHS foundation trust to hold property on trust—

           (a)           for the purposes of the NHS foundation trust, or

           (b)           for any purposes relating to the health service.

     (2)    The order may—

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           (a)           make provision as to the persons by whom trustees are to be appointed

and generally as to the method of their appointment,

           (b)           make any appointment subject to such conditions as may be specified

in the order (including conditions requiring the consent of the Secretary

of State),

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           (c)           make provision as to the number of trustees to be appointed, including

provision under which that number may from time to time be

determined by the Secretary of State after consultation with such

persons as he considers appropriate,

           (d)           make provision with respect to the term of office of any trustee and his

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removal from office.

     (3)    Where trustees have been appointed for an NHS foundation trust under this

section, the Secretary of State may by order provide for the transfer of any trust

property from the NHS foundation trust to the trustees.

     (4)    Where an NHS trust for which trustees have been appointed under section 11

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of the 1990 Act is given an authorisation, the order appointing the trustees is to

have effect as an order under this section.

Failure

 23    Failing NHS foundation trusts

     (1)    If the regulator is satisfied—

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

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           (a)           that an NHS foundation trust is contravening, or failing to comply

with, any term of its authorisation or any requirement imposed on it

under any enactment and that the contravention or failure is

significant, or

           (b)           that an NHS foundation trust has contravened, or failed to comply

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with, any such term or requirement and is likely to do so again and that

the contravention or failure was significant,

            he may by a notice to the trust exercise any one or more of the powers in

subsections (3) and (4).

     (2)    He may also by a notice to the trust exercise any one or more of those powers

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if he is satisfied that the trust has contravened or failed to comply with a

previous notice.

     (3)    The regulator may require the trust, the directors or the board of governors to

do, or not to do, specified things or things of a specified description within a

specified period.

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     (4)    The regulator may remove any or all of the directors or members of the board

of governors and appoint interim directors or members of the board.

     (5)    The regulator’s power to remove a director, or member of the board of

governors, of the trust includes power to suspend him from office, or to

disqualify him from holding office, as a director or member of the board of

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governors of the trust for a specified period.

 24    Voluntary arrangements

     (1)    If the regulator is satisfied that it is necessary or desirable to do so, he may by

a notice to an NHS foundation trust require the directors—

           (a)           to take steps to obtain a moratorium, or

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           (b)           to make a proposal for a voluntary arrangement.

     (2)    An order may provide for Part 1 of the Insolvency Act 1986 (c. 45) (company

voluntary arrangements) including any related provision of that Act to apply

with modifications in relation to NHS foundation trusts; and the references in

this Part to a moratorium or voluntary arrangement are to a moratorium under

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section 1A, or a voluntary arrangement under Part 1, of that Act as modified

by the order.

 25    Dissolution etc.

     (1)    The powers conferred by this section are exercisable where—

           (a)           an NHS foundation trust contravenes or fails to comply with a notice

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under section 23 or 24 or the trust’s compliance with a notice under

section 24 does not result in the implementation of a voluntary

arrangement, and

           (b)           the regulator considers that further exercise of any of the powers

conferred by those sections would not be likely to secure the provision

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of the goods and services which the authorisation requires the trust to

provide.

     (2)    Before the powers conferred by this section are exercised, the regulator must

consult prescribed persons about prescribed matters.

              “Prescribed” means prescribed by an order.

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

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     (3)    An order may transfer, or provide for the transfer of, any property or liabilities

of the trust to—

           (a)           another NHS foundation trust,

           (b)           a Primary Care Trust,

           (c)           an NHS trust,

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           (d)           the Secretary of State.

     (4)    Schedule 3 (which provides for the transfer of employees) has effect.

     (5)    An order may provide for the dissolution of the trust.

     (6)    An order may apply any provision of Part 4 of the Insolvency Act 1986 (c. 45)

(winding up of companies), including any related provision of that Act, with

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modifications.

     (7)    Where the regulator refuses to give an authorisation to a public benefit

corporation—

           (a)           the powers conferred by this section are also exercisable,

           (b)           references in this section and Schedule 3 to an NHS foundation trust are

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to be read as references to the corporation.

 26    Sections 23 to 25: supplementary

     (1)    This section applies for the purposes of sections 23 to 25.

     (2)    An order means an order made by the Secretary of State.

     (3)    The regulator must send a copy of any notice given under section 23 to the

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registrar of companies.

     (4)    The regulator must give notice of any dissolution of the trust to the registrar of

companies.

     (5)    The modifications of the Insolvency Act 1986 that may be made by an order

include (for example)—

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           (a)           provision for securing that the goods and services which the trust is

required by the authorisation to provide continue to be provided

(whether by the trust or another),

           (b)           provision for securing the protection of property needed for the

purposes of those goods and services.

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Mergers

 27    Mergers

     (1)    An application may be made jointly by—

           (a)           an NHS foundation trust, and

           (b)           another NHS foundation trust or an NHS trust,

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            to the regulator for authorisation of the dissolution of the trusts and the

transfer of some or all of their property and liabilities to a new NHS foundation

trust established under this section.

     (2)    The application must—

           (a)           be supported by the Secretary of State if one of the parties to it is an

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NHS trust,

 

 

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

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           (b)           specify the property and liabilities proposed to be transferred to the

new NHS foundation trust,

           (c)           describe the goods and services which it is proposed should be

provided by the new trust, and

           (d)           be accompanied by a copy of the proposed constitution of the new

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trust;

            and must give any further information which the regulator requires the

applicants to give.

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

at any time before authorisation is given under this section.

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     (4)    The regulator may—

           (a)           issue a certificate incorporating the directors of the applicants as a

public benefit corporation, and

           (b)           give an authorisation under this section to the corporation to become an

NHS foundation trust,

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            if he is satisfied as to the following matters.

     (5)    The matters are that—

           (a)           the constitution of the new trust will be in accordance with Schedule 1

and will otherwise be appropriate,

           (b)           taken as a whole the actual membership of the public constituency of

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the new trust will be representative of those eligible for such

membership,

           (c)           the new trust will be able to provide the goods and services which the

authorisation is to require it to provide, and

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

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     (6)    If regulations require the applicants to consult prescribed persons about the

application, the regulator may not give an authorisation under this section

unless he is satisfied that the applicants have complied with the regulations.

     (7)    The certificate is conclusive evidence of incorporation; and the authorisation is

conclusive evidence that the corporation is an NHS foundation trust.

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     (8)    On an authorisation being given under this section, the proposed constitution

of the NHS foundation trust has effect, but the directors of the applicants may

exercise the functions of the trust on its behalf until a board of directors is

appointed in accordance with the constitution.

 28    Section 27: supplementary

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     (1)    Where an authorisation is given under section 27, the regulator is to specify the

property and liabilities to be transferred to the new NHS foundation trust.

     (2)    Where such an authorisation is given, the Secretary of State is to make an

order—

           (a)           dissolving the trusts in question, and

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           (b)           transferring, or providing for the transfer of, the property and liabilities

specified by the regulator to the new NHS foundation trust.

     (3)    The order may—

           (a)           transfer, or provide for the transfer of, any of the remaining property or

liabilities to the persons mentioned in section 25(3),

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

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           (b)           include provisions corresponding to those of Schedule 3.

     (4)    Where an NHS foundation trust is dissolved under this section, the regulator

must give notice of the dissolution to the registrar of companies.

     (5)    Where one of the parties to an application under section 27 is an NHS trust, the

powers conferred on the Secretary of State by Part 4 of Schedule 2 to the 1990

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Act are not exercisable in relation to the trust.

     (6)    Subsections (3) and (5) of section 6 apply to an authorisation under section 27

as they do in relation to an authorisation under that section.

Co-operation

 29    Co-operation between NHS bodies

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In section 26 of the Health Act 1999 (c. 8) (co-operation between NHS bodies),

for “and NHS trusts” there is substituted “, NHS trusts and NHS foundation

trusts”.

Patient and public involvement

 30    Public involvement and consultation

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In section 11(2) of the Health and Social Care Act 2001 (c. 15) (public

involvement and consultation), at the end there is inserted—

                  “(d)                    NHS foundation trusts”.

 31    Patients’ Forums

     (1)    The National Health Service Reform and Health Care Professions Act 2002

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(c. 17) is amended as follows.

     (2)    In section 16 (additional functions of PCT Patients’ Forums), in subsection (4),

after paragraph (c) there is inserted—

                  “(ca)                    NHS foundation trusts which provide services to patients in the

area of the Primary Care Trust,”.

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     (3)    In section 17 (entry and inspection of premises), in subsection (1), after

paragraph (f) there is inserted—

                  “(fa)                    NHS foundation trusts,”.

     (4)    In section 18 (annual reports), in subsection (2), at the end there is inserted—

                  “(e)                    where the report includes provision which relates to any NHS

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foundation trust, the Independent Regulator of NHS

Foundation Trusts”.

 32    Commission for Patient and Public Involvement in Health

In section 20(12) of the National Health Service Reform and Health Care

Professions Act 2002 (Commission for Patient and Public Involvement in

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Health), in the definition of “health service bodies”, for “and NHS trusts” there

is substituted “, NHS trusts and NHS foundation trusts”.

 

 

 
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