Failing trusts could lose foundation status

23 Jul 09
The government is to change the law so that failing hospitals can lose their foundation status, the health secretary has announced.
By Alex Klaushofer

23 July 2009

The government is to change the law so that failing hospitals can lose their foundation status, the health secretary has announced. 

In a statement, Andy Burnham said the Department of Health was consulting on legislative changes to allow the foundation trusts regulator Monitor to ‘de-authorise’ trusts that failed to meet certain standards of care.

The decision was triggered by a Healthcare Commission report in March 2009, which revealed ‘appalling’ standards of care at the Mid-Staffordshire Foundation Trust. It showed there were 27%–45% more deaths over a three-month period than would normally be expected. 

Burnham said the failings ‘exposed a need for changes to the regulations’, and the new powers ‘will ensure we can intervene in such cases’.

‘These changes strike the right balance between ensuring fundamental failure is addressed, maintaining the highest standards and protecting the significant benefits of foundation trusts,’ he added.

The Foundation Trust Network reacted positively to the DoH’s decision. ‘Our members will welcome the fact that ministers intend to give power to de-authorise foundation trusts to Monitor,’ said director Sue Slipman.

‘We need to be clear about the way in which Monitor and the Care Quality Commission work together to ensure there is no confusion about decisions around quality in the regulatory system. The Foundation Trust Network looks forward to working with Monitor on the criteria that would lead to any de-authorisations under its new powers.’

The announcement came on the day that the CQC published its three-month progress report on Mid-Staffordshire. It said the trust had made an ‘acceptable start’ in implementing the improvements recommended by its predecessor, the Healthcare Commission.

‘The trust has put together and published an action plan, developed a comprehensive transformation programme… and mortality rates are showing early signs of improvement, which is encouraging,’ said CQC’s head of investigation and enforcement Christine Braithwaite.

‘While we recognise it will take time for the full effects of the trust’s actions to be felt, there are still areas which need to be addressed urgently, such as the purchase and use of equipment and more nursing staff,’ she added.

The DoH has also launched an inquiry to examine the lessons learnt from the trust’s failings, and is working with Monitor to appoint a new chair and chief executive.

The interim chief executive of Mid-Staffordshire trust, Eric Morton, said: ‘It is reassuring that today, the Care Quality Commission has published a report acknowledging that the trust has made progress and is showing early signs of improvement, although we know there is still work to be done.’

The consultation on the proposed legislative changes is due to be published shortly.

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