Quality Commission to Implement a Tough Series of Checks for Care Home Owners

Quality Commission to Implement a Tough Series of Checks for Care Home OwnersOfficials revealed today that care home owners will now have to prove their financial stability so as to avoid a second Southern Cross-style collapse.

Norman Lamb, the government's Care and Support Minister, said Care Quality Commission will now have power to get access to the finances of the largest care companies. The care home providers would have to go through a tough series of checks.

CQC will assess the financial health of the largest care providers. The announcement came after the abrupt collapse of Southern Cross, Britain's biggest care homes operator, attributed affected more than 30,000 elderly and vulnerable people in 2011.

The financial difficulties in the care home sector were underlined by fiasco. Lamb said the move will enable to get early warnings about a company being in trouble. Financial difficulty is an indication of poor care.

"Everyone who receives care and support wants to know they will be protected if the company in charge of their care goes bust", he said.  

If a care provider is found to be in trouble, the CQC will have the authority to commission an independent business review to help it get back its financial stability.

The Department of Health designs the policy framework of England's social car system, but many of the services are funded by the local councils.