Health and Social Care Bill — Regulatory Approval of Activities by NHS Foundation Trusts Not Related to Healthcare — 20 Mar 2012 at 19:45

The majority of MPs voted not to require the approval of the health service regulator Monitor^[1] before the implementation of any plans by Foundation Trusts which would result in their income from activities not related to healthcare exceeding 5% of their total income.

Foundation Trusts are organisations which run NHS services such as some hospitals and ambulance services. Section 43(3) of the National Health Service Act 2006^[2] permits Foundation Trusts to carry out activities unrelated to the provision of healthcare "for the purpose of making additional income available in order better to carry on its principal purpose".

Technically the vote was on if Amendment (b) proposed to Lords amendment 148 ought be made. That amendment stated^[3]:

• Line 30, [Inserted section (3D), seventh line] at end add—
• ‘(3E) An NHS foundation trust which proposes to increase the proportion of its total income in any financial year attributable to activities other than the provision of goods and services for the purposes of the health service in England, if the proposed proportion which would result is greater than five per cent., may implement the proposal only with the approval of Monitor.’.

Lords Amendment 148 stated^[4][5]:

• Page 159, line 16, at end insert—
• “( ) After subsection (3) of that section insert—
• “(3A) Each annual report prepared by the NHS foundation trust must give information on the impact that income received by the trust otherwise than from the provision of goods and services for the purposes of the health service in England has had on the provision by the trust of goods and services for those purposes.
• (3B) Each document prepared by an NHS foundation trust under paragraph 27 of Schedule 7 (forward plan) must include information about—
• (a) the activities other than the provision of goods and services for the purposes of the health service in England that the trust proposes to carry on, and
• (b) the income it expects to receive from doing so.
• (3C) Where a document which is being prepared under paragraph 27 of Schedule 7 contains a proposal that an NHS foundation trust carry on an activity of a kind mentioned in subsection (3B)(a), the council of governors of the trust must—
• (a) determine whether it is satisfied that the carrying on of the activity will not to any significant extent interfere with the fulfilment by the trust of its principal purpose or the performance of its other functions, and
• (b) notify the directors of the trust of its determination.
• (3D) An NHS foundation trust which proposes to increase by 5% or more the proportion of its total income in any financial year attributable to activities other than the provision of goods and services for the purposes of the health service in England may implement the proposal only if more than half of the members of the council of governors of the trust voting approve its implementation."

This would have had an effect on Clause 161^[6] of the Health and Social Care Bill^[7] which would have amended Section 43 of the National Health Service Act 2006^[2], which states:

• (1)An authorisation must authorise the NHS foundation trust to provide goods and services for purposes related to the provision of health care.
• (2)But the authorisation must secure that the principal purpose of the NHS foundation trust is the provision of goods and services for the purposes of the health service in England.
• (3)The NHS foundation trust may also carry on activities other than those mentioned in subsection (1), subject to any restrictions in the authorisation, for the purpose of making additional income available in order better to carry on its principal purpose.

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• [1] Monitor, the sector regulator for health services in England
• [2] Section 43 of the National Health Service Act 2006
• [3] Amendment sheet for Consideration of Lords Amendments to the Health and Social Care Bill - 20 March 2012
• [4] Lords Amendments to the Health and Social Care Bill - 19 March 2012
• [5] Page of Lords Amendments to the Health and Social Care Bill - 19 March 2012 containing amendment 148
• [6] Clause 161 of the Health and Social Care Bill as at 12 September 2011
• [7] Bill as at 12 September 2011 - the version which the amendments relate to

Debate in Parliament | Source |