The Competition and Markets Authority (CMA) has now produced its final report on the care homes market. The full report provides interesting reading and can be accessed by clicking here.
The CMA identifies various common themes in relation to the contractual basis for residents’ placement at care homes.
A checklist of these issues is attached which care home operators may find helpful to use to measure their own contracts against. If you need advice on this, we can assist.
The CMA has also suggested that a model agreement should be produced and that may assist in the formulation of future contracts. The extent to which it is commercially acceptable does, of course, remain to be seen.
Summary of CMA issues
- Lack of indicative prices on websites
- Resident deposits
- Other substantial upfront payment
- Not providing contract terms to residents in a clear and timely way
- Guarantee of fees
- Fee increases
- Effect of NHS funded nursing care
- Termination clauses
- Fees charged after death
- Third party top up arrangements
- Effect of NHS continuing health care funding
- Protecting resident’s deposits
- Third party top up fees for local authority funded residents
- Top up payment for NHS CHC residents
- Improving awareness of access to the Ombudsman