Limited Scope of CMA Draft Guidance

16 July 2018 – Care England

Care England has responded to the Competition and Market Authority’s consultation document on draft advice on consumer law for care home providers for the elderly.

Professor Martin Green OBE, Chief Executive of Care England said:

Unfortunately the CMA has limited the scope of its draft guidance and it fails to cover contractual arrangements between Local Authorities, Clinical Commissioning Groups and care home providers.  Without this element it is only looking at half the picture as commissioners contracts hugely influence through contract terms and funding the care available for residents”.

There is a juxtaposition between fragments of the draft guidance and the CMA’s own Care Home Market Study report.  For example, the CMA’s Care Home Market Study report identifies that public commissioners were paying 44% below the true cost of care across England to a tune of between £200-300 million per year; however this context hasn’t been taken into account in the draft guidance. Government must ensure that the underfunding of social care for people living in care homes and supported by the state, as reported by the CMA, is addressed urgently.

Martin Green continued:

We welcome transparency and good information for residents and families and want to work with the Care Provider Alliance and CMA to support the sector going forward and hope the issues raised in our response are taken on board by the CMA in its final guidance.”

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