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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

11

 

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

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

5

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

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

provide.

10

(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.

(3)   

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

of the trust to—

15

(a)   

another NHS foundation trust,

(b)   

a Primary Care Trust,

(c)   

an NHS trust,

(d)   

the Secretary of State.

(4)   

Schedule 2 (which provides for the transfer of employees) has effect.

20

(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

modifications.

(7)   

Where the regulator refuses to give an authorisation to a public benefit

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corporation—

(a)   

the powers conferred by this section are also exercisable,

(b)   

references in this section and Schedule 2 to an NHS foundation trust are

to be read as references to the corporation.

26      

Sections 23 to 25: supplementary

30

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

include (for example)—

(a)   

provision for securing that the goods and services which the trust is

35

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.

 

 

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

12

 

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,

5

   

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

10

NHS trust,

(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

15

(d)   

be accompanied by a copy of the proposed constitution of the new

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

20

at any time before authorisation is given under this section.

(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

25

NHS foundation trust,

   

if the regulator 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,

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(b)   

the applicant has taken steps to secure that (taken as a whole) the actual

membership of any public constituency, and (if there is one) of the

patients’ constituency will be representative of those eligible for such

membership,

(c)   

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

35

authorisation is to require it to provide, and

(d)   

any other requirements which the regulator considers appropriate are

met.

(6)   

In deciding whether it is satisfied as to the matters referred to in subsection

(5)(c), the regulator is to consider (among other things)—

40

(a)   

any report or recommendation in respect of either of the applicants

made by the Commission for Healthcare Audit and Inspection,

(b)   

the financial position of the applicants.

(7)   

The applicants must consult about the application in accordance with

regulations.

45

 

 

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

13

 

(8)   

In the course of the consultation the applicants must seek the views of —

(a)   

any Patients’ Forum for an applicant,

(b)   

the staff employed by the applicants,

(c)   

individuals who live in any area specified in the proposed constitution

as the area for a public constituency,

5

(d)   

any local authority that would be authorised by the proposed

constitution to appoint a member of the board of governors,

(e)   

if the proposed constitution provides for a patients’ constituency,

individuals who would be able apply to become members of that

constituency,

10

(f)   

any persons prescribed by regulations.

(9)   

The regulator may not give an authorisation under this section unless it is

satisfied that the applicants have complied with the regulations.

(10)   

The certificate is conclusive evidence of incorporation; and the authorisation is

conclusive evidence that the corporation is an NHS foundation trust.

15

(11)   

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

20

(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

25

(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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(b)   

include provisions corresponding to those of Schedule 2.

(4)   

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

Act are not exercisable in relation to the trust.

(5)   

Section 6(4) applies to an authorisation under section 27 as it does in relation to

35

an authorisation under that section.

Co-operation

29      

Co-operation between NHS bodies

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

40

trusts”.

 

 

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

14

 

Patient and public involvement

30      

Public involvement and consultation

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”.

5

31      

Patients’ Forums

(1)   

The National Health Service Reform and Health Care Professions Act 2002

(c. 17) is amended as follows.

(2)   

In section 15 (establishment of patients’ forums) in subsection (1), after

paragraph (b) there is inserted “and

10

(c)   

for each foundation trust.”

(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)—

15

(a)   

in subsection (2)(c)(ii) after “NHS trust” there is inserted “or foundation

trust”;

(b)   

in subsection (2), at the end there is inserted—

“(e)   

where the report includes provision which relates to any

NHS foundation trust, the Independent Regulator of

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NHS Foundation Trusts”.

(5)   

In section 19 (supplementary), in subsection (2)—

(a)   

in paragraph (k), after “an NHS trust,” there is inserted “an NHS

foundation trust,”,

(b)   

in paragraph (p), after “NHS trusts,” there is inserted “NHS foundation

25

trusts,”.

32      

Commission for Patient and Public Involvement in Health

(1)   

Section 20 of the National Health Service Reform and Health Care Professions

Act 2002 (Commission for Patient and Public Involvement in Health) is

amended as follows.

30

(2)   

In subsection (10), after “an NHS trust,” there is inserted “an NHS foundation

trust,”.

(3)   

In subsection (12), in the definition of “health service bodies”, for “and NHS

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

Miscellaneous

35

33      

Taxation

(1)   

In section 519A of the Income and Corporation Taxes Act 1988 (c. 1) (taxation

of health service bodies), in subsection (2), after paragraph (b) there is

 

 

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

15

 

inserted—

“(bb)   

an NHS foundation trust”.

(2)   

Section 61(3) of the 1990 Act (health service bodies: stamp duty) applies to an

NHS foundation trust as it applies to an NHS trust.

(3)   

In section 41 of the Value Added Tax Act 1994 (c. 23) (application to the

5

Crown), in subsection (7), after “1978” there is inserted “an NHS foundation

trust”.

34      

Other amendments relating to NHS foundation trusts

Schedule 3 (which makes amendments relating to NHS foundation trusts) has

effect.

10

35      

Conduct of elections

(1)   

Regulations may make provision as to the conduct of elections for membership

of the board of governors of an NHS foundation trust.

(2)   

The regulations may in particular provide for—

(a)   

nomination of candidates and obligations to declare their interests,

15

(b)   

systems and methods of voting, and the allocation of places on the

board of governors, at contested elections,

(c)   

filling of vacancies,

(d)   

supervision of elections,

(e)   

election expenses and publicity,

20

(f)   

questioning of elections and the consequences of irregularities.

(3)   

An NHS foundation trust must secure that its constitution is in accordance

with regulations under this section.

(4)   

Pending the coming into force of regulations under this section, elections for

membership of the board of governors of an NHS foundation trust, if

25

contested, must be by secret ballot.

36      

Offence

(1)   

A person may not vote at an election for the board of governors of an NHS

foundation trust unless, within the specified period, he has made a declaration

in the specified form stating which constituency he is a member of.

30

(2)   

A person may not stand for election to the board unless, within the specified

period, he has made a declaration in the specified form that he is a member of

the constituency for which the election is being held and is not prevented from

being a member of the board by paragraph 7 of Schedule 1.

(3)   

A person elected to the board may not vote at a meeting of the board unless,

35

within the specified period, he has made a declaration in the specified form

that he is a member of the trust and is not prevented from being a member of

the board by paragraph 7 of Schedule 1.

(4)   

Specified means specified for the purpose in the trust’s constitution.

(5)   

A person is guilty of an offence if he—

40

 

 

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

16

 

(a)   

makes a declaration under this section which he knows to be false in a

material particular, or

(b)   

recklessly makes such a declaration which is false in a material

particular.

(6)   

A person guilty of an offence under this section is liable on summary

5

conviction to a fine not exceeding level 4 on the standard scale.

37      

Representative membership

An authorisation may require an NHS foundation trust to take steps to secure

that (taken as a whole) the actual membership of any public constituency and

(if there is one) of the patients’ constituency is representative of those eligible

10

for such membership.

38      

Audit

Schedule 4 (which makes provision in relation to the audit of the accounts of

NHS foundation trusts) has effect.

39      

General duty of NHS foundation trusts

15

An NHS foundation trust must exercise its functions effectively, efficiently and

economically.

Supplementary

40      

Interpretation of Part 1

(1)   

In this Part—

20

“the 1990 Act” means the National Health Service and Community Care

Act 1990 (c. 19),

“authorisation” means an authorisation under section 6 or 27,

“health service body” means a Strategic Health Authority, a Special

Health Authority, an NHS trust, an NHS foundation trust or a Primary

25

Care Trust,

“regulations” means regulations made by the Secretary of State.

(2)   

Other expressions used in this Part and in the 1977 Act have the same meaning

in this Part as in that Act.

(3)   

Any references in this Part, in relation to property held on trust, to the purposes

30

of an NHS foundation trust are to the general or any specific purposes of the

NHS foundation trust (including the purposes of any specific hospital at or

from which services are provided by the trust).

(4)   

Any references in this Part to goods and services are to be interpreted in

accordance with section 14(5).

35

 

 

Health and Social Care (Community Health and Standards) Bill
Part 2 — Standards
Chapter 2 — NHS health care: introductory

17

 

Part 2

Standards

Chapter 1

Regulatory bodies

41      

The Commission for Healthcare Audit and Inspection

5

(1)   

There is to be a body corporate known as the Commission for Healthcare Audit

and Inspection (in this Part referred to as the CHAI).

(2)   

Schedule 5 (which makes further provision about the CHAI) has effect.

42      

The Commission for Social Care Inspection

(1)   

There is to be a body corporate known as the Commission for Social Care

10

Inspection (in this Part referred to as the CSCI).

(2)   

Schedule 6 (which makes further provision about the CSCI) has effect.

43      

Transfer of property etc to CHAI and CSCI

Schedule 7 (which makes provision for the transfer of property, rights and

liabilities to the CHAI and the CSCI) has effect.

15

44      

Abolition of former regulatory bodies

(1)   

The Commission for Health Improvement is abolished.

(2)   

The National Care Standards Commission is abolished.

Chapter 2

NHS health care: introductory

20

45      

Quality in health care

(1)   

It is the duty of each NHS body to put and keep in place arrangements for the

purpose of monitoring and improving the quality of health care provided by

and for that body.

(2)   

In this Part “health care” means—

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(a)   

services provided to individuals for or in connection with the

prevention, diagnosis or treatment of illness; and

(b)   

the promotion and protection of public health.

(3)   

In subsection (2)(a), “illness” has the meaning given by section 128(1) of the

1977 Act.

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