News / Regulator role to continue through transition (HFMA 2010 latest)

Monitor will continue to assess the financial health of some foundation trusts, even after it officially loses this role, the regulator’s chairman Steve Bundred told the HFMA annual conference.

Mr Bundred (pictured) said that the transitional arrangements to the new system had to be right, and this included the need for Monitor to oversee new foundation trusts’ financial health at a time when they may be at their most vulnerable. It would carry out these functions even though it would have officially been recast as an economic regulator. The government has said all trusts should be foundations – or part of foundations – by the beginning of April 2014.

'The government has accepted Monitor’s current compliance framework should have disappeared by 1 April 2012, and it will disappear at that time for a number of foundation trusts. But the government also recognises there will be a large number of new foundations and the need for some continuing effort by Monitor to ensure their financial health for a limited period, possibly up to two years.’

‘The arrangements could not continue in the long term as there is a clear conflict of interest, but it is manageable in the short term.’

He added that next Wednesday the government is due to publish a paper detailing its response to the white paper consultation, alongside the operating framework for 2011/12. The paper must be clear on how the transitional arrangements would be implemented, he said.

Andy McKeon, Audit Commission managing director of health, told the conference that the commission was hoping to mutualise its audit practice when the watchdog is abolished at the end of 2012. He added the commission’s payment by results assurance framework, studies and briefings would continue to be produced for the next two years up to its abolition.

He said a report due next week had found some of the critical indicators of change had altered little, despite 18 months of QIPP (quality, innovation, productivity and prevention). Outpatient attendance and non-elective activity were still rising, he added.