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Market Oversight of adult social care
We have a duty to oversee the financial health of the most difficult-to-replace providers of adult social care services, so that we can seek to assist local authorities with their responsibility to ensure continuity of care if services are likely to fail.
What does CQC do?
Since April 2015, CQC has had a statutory responsibility to monitor and assess the financial sustainability of those care organisations in England that local authorities would find difficult to replace should they fail and become unable to carry on delivering a service. Collectively, these providers represent around 30% of the adult social care market in England.
CQC has no responsibility or regulatory power to monitor and assess the financial sustainability of the adult social care sector as a whole.
Also, CQC has no responsibility or regulatory power to intervene to prevent the failure of an individual corporate provider that is subject to CQC’s financial monitoring and assessment. Instead, we are required to inform local authorities when we believe that service cessation as a result of business failure is likely to happen, in order to seek to assist local authorities with their responsibility to ensure continuity of care.
It's important to note that being subject to CQC’s financial monitoring and assessment does not mean that a corporate provider is at risk of failing. It only means that the provider would be difficult to replace if they did fail.
The legal basis for issuing our guidance is Section 55(7) of the Care Act 2014.
- Last updated:
- 7 December 2017