Legal update
explore the hurdles consumers face when purchasing residential care. The CMA has confirmed that the market study has a limited scope and therefore it will not be investigating the impact that health services and health commissioners have on the residential home market. Providers have already highlighted the flaw with this approach as a number of businesses continue to withdraw from contracts featuring residential care with nursing. Without a thorough analysis of local authority and clinical commissioning group (CCG) purchasing practices, the CMA will not develop a full picture of the market and its ability to react to funding pressures.
What next?
The CMA is currently evaluating the responses to the questionnaires and will publish an interim report (due this month). The CMA has expressed the desire to hear directly from providers with regard to the failure of local authorities to provide fee uplifts or pay sustainable fee rates, and how this can lead to reduced competition in the market place and ultimately a lack of choice for consumers (both private and publicly funded).
Once the market study has concluded, we expect to see commentary from the CMA around the appropriateness of deposit protection schemes, additional costs for services such as hospital visits, chiropody or group activities and charging 100 per cent fees when a resident is absent for a period of time, for example, in hospital. In terms or readying your business for the conclusion of the study, if you haven’t already considered your care contracts in light of the Consumer Rights Act 2015, now is the time to review your standard terms and understand your customers’ rights and expectations.
References 1 Competition and Markets Authority. (2016) CMA launches review of UK care and nursing homes. [
www.tinyurl.com/lof92fp].
2 LaingBuisson. (2017) Care home funding shortfall leaves self-funders filling £1.3 billion gap. [
www.tinyurl.com/ljnzv2t].
l To respond to the market study, go to
www.gov.co.uk We’d be interested to hear your thoughts on the CMA’s interim report. Please email your comments to
Susannah@thecarehomeenvironment.com
Emma Watt
With experience in both contentious and non-contentious commercial work, Emma has built up valuable experience helping businesses adapt to market pressures and changes in regulation as well as seize upon strategic opportunities and ensure long term viability. With a particular interest in the housing and health and social care sectors, Emma is alive to the issues that are affecting commercial organisations facing economic challenges in a regulated environment.
May 2017 •
www.thecarehomeenvironment .com
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