Part 2E+WHealth service bodies

[F1Chapter 5AE+WTrust special administrators: NHS trusts and NHS foundation trusts

F2 ...E+W

65D[F3NHS foundation trusts: appointment of trust special administrator]E+W

[F4(1)This section applies if [F5NHS England] is satisfied that [F6—

(a)]an NHS foundation trust is, or is likely to become, unable to pay its debts] [F7, or

(b)there is a serious failure by an NHS foundation trust to provide services that are of sufficient quality to be provided under this Act and it is appropriate to make an order under subsection (2).]

[F8(1A)This section also applies if the Care Quality Commission—

(a)is satisfied that there is a serious failure by an NHS foundation trust to provide services that are of sufficient quality to be provided under this Act and that it is appropriate to make an order under subsection (2),

(b)informs [F9NHS England] that it is satisfied as mentioned in paragraph (a) and gives [F9NHS England] its reasons for being so satisfied, and

(c)requires [F10NHS England] to make an order under subsection (2).]

[F4(2)[F11NHS England] may [F12or, where this section applies as a result of subsection (1A), must] make an order authorising the appointment of a trust special administrator to exercise the functions of the governors, chairman and directors of the trust.]

[F13(2A)Where NHS England is not required to make an order under this section as a result of subsection (1A), it may do so only if the Secretary of State has approved the making of the order.]

[F4(3)As soon as reasonably practicable after the making of an order under subsection (2), the Care Quality Commission must provide to [F14NHS England] a report on the safety and quality of the services that the trust provides under this Act.]

[F15(3A)Before imposing a requirement as mentioned in subsection (1A)(c), the Care Quality Commission must—

(a)consult the Secretary of State and [F16NHS England], and

(b)having done that, consult—

(i)the trust,

(ii)F17... and

(iii)any other person to which the trust provides services under this Act and which the Commission considers it appropriate to consult.]

[F18(4)Before making an order under this section in a case where it is not required to do so as a result of subsection (1A), NHS England must consult—

(a)the trust,

(b)any person to which the trust provides services under this Act and which NHS England considers it appropriate to consult, and

(c)the Care Quality Commission.]

[F19(5)An order under subsection (2) must specify the date when the appointment is to take effect, which must be within the period of 5 working days beginning with the day on which the order is made.

(6)[F20NHS England] must lay before Parliament (with the statutory instrument containing the order) a report stating the reasons for making the order.

(7)If [F21NHS England] makes an order under subsection (2), it must—

(a)appoint a person as the trust special administrator with effect from the day specified in the order, and

(b)publish the name of the person appointed.

(8)A person appointed as a trust special administrator under this section holds and vacates office in accordance with the terms of the appointment.

(9)A person appointed as a trust special administrator under this section must manage the trust's affairs, business and property, and exercise the trust special administrator's functions, so as to achieve the objective set out in section 65DA as quickly and as efficiently as is reasonably practicable.

(10)When the appointment of a trust special administrator under this section takes effect, the trust's governors, chairman and executive and non-executive directors are suspended from office; and Chapter 5 of this Part, in its application to the trust, is to be read accordingly.

(11)But subsection (10) does not affect the employment of the executive directors or their membership of any committee or sub-committee of the trust.

[F22(12)NHS England may pay remuneration and expenses to a trust special administrator appointed under this section.]]

[F2365DAObjective of trust special administrationE+W

(1)The objective of a trust special administration is to secure—

(a)the continued provision of such of the services provided for the purposes of the NHS by the NHS foundation trust that is subject to an order under section 65D(2), at such level, as the commissioners of those services determine, and

[F24(aa)that the services whose continuous provision is secured as mentioned in paragraph (a) are of sufficient safety and quality to be provided under this Act,]

(b)that it becomes unnecessary for the order to remain in force for that purpose.

(2)The commissioners may determine that the objective set out in subsection (1) is to apply to a service only if they are satisfied that the criterion in subsection (3) is met.

(3)The criterion is that ceasing to provide the service under this Act would, in the absence of alternative arrangements for its provision under this Act, be likely to—

(a)have a significant adverse impact on the health of persons in need of the service or significantly increase health inequalities, or

(b)cause a failure to prevent or ameliorate either a significant adverse impact on the health of such persons or a significant increase in health inequalities.

(4)In determining whether that criterion is met, the commissioners must (in so far as they would not otherwise be required to do so) have regard to—

(a)the current and future need for the provision of the service under this Act,

(b)whether ceasing to provide the service under this Act would significantly reduce equality between those for whom the commissioner arranges for the provision of services under this Act with respect to their ability to access services so provided, and

(c)such other matters as may be specified in relation to NHS foundation trusts in guidance published by [F25NHS England].

(5)[F26NHS England] may revise guidance under subsection (4)(c) and, if it does so, must publish the guidance as revised.

[F27(5A)Before publishing guidance under subsection (4)(c), [F28NHS England] must consult the Care Quality Commission.]

(6)Before publishing guidance under subsection (4)(c) or (5), [F29NHS England] must obtain the approval of—

(a)the Secretary of State;

F30(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)[F31NHS England] must make arrangements for facilitating agreement between commissioners in determining the services provided by the trust under this Act to which the objective set out in subsection (1) is to apply.

(8)Where commissioners fail to reach agreement in pursuance of arrangements under subsection (7), [F32NHS England] may make the determination (and the duty imposed by subsection (1)(a), so far as applying to the commissioners concerned, is to be regarded as discharged).

(9)In this section—

• “commissioners” means the persons to which the trust provides services under this Act, and

• “health inequalities” means the inequalities between persons with respect to the outcomes achieved for them by the provision of services that are provided as part of the health service.]

F3365E NHS foundation trusts: de-authorisation and appointment of trust special administratorE+W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]