News / DH: no to administration regime

The government will not introduce a health special administration regime for independent providers of commissioner-requested services (CRS) that become insolvent in 2014/15.

The Department of Health consulted on introducing an administration regime for independent providers of CRS – services deemed essential by commissioners – that would be similar to that operated for foundation trusts.

However, in April it announced that it would not be implemented in this financial year.

The Department said: ‘The government has decided not to go ahead with the introduction of a health special administration regime for independent providers in April 2014.

‘This means that if an independent provider of commissioner requested services (CRS) becomes insolvent, they would not be placed in a special administration regime in order to safeguard essential services.’

Instead, the Department will work with Monitor, the providers and other relevant organisations to safeguard essential services.

The Department said that at the moment there was not enough information on which services provided by independents were considered to be CRS.

It may review its position on health special administration when this information becomes available over the next few years. ?

Monitor published its risk assessment framework for independent sector providers of CRS. The framework has applied to foundation trusts since October 2013, but the financial elements apply to licensed independent sector providers from April 2014.

The document sets out:

• Annual and in-year monitoring processes for independent CRS providers
• The initial assessment of risk to the continued delivery of CRS
• Other elements of the oversight regime, including submissions, forward financial information and exception reporting.