CQC Slips In Another Change to the Process – Wheel Out The Statement of Financial Viability
As a late teen, I went for lunch with my boyfriend to a local café. The coffee was good, the food delightful and we seemed to have a rhythm to our chat that was easy. We had an understanding the bill would be split, and the lunch went with its usual pattern. Just before I got up to leave, he grabbed my hand and surprised me, although looking back I probably knew…
Similarly, amongst the binary chug of changes after consultation, the CQC has quietly announced a tweak to its requirements.
In the latest Provider Newsletter the CQC has said that from the 12 February 2018, it will be asking providers for “a statement of financial viability, put together by a financial specialist…”
What is Financial Viability?
As part of your business planning, you should be looking at your capital and how you will financially resource your service and how this will be maintained against costs you have and foresee.
It is no secret that not every business is sustainable, and as times get tough, it is even more important that providers can show their viability.
Who is A Financial Specialist?
The CQC has specified this, they say an accountant, bank or financial services firm will suffice.
Why Are They Doing This?
Providers need to comply with certain regulations, and financial viability relates to Regulation 13 – Financial Position of the Care Quality Commission Registration Regulations 2009.
Inspectors do ask providers to show them details of their financial position within the Registration process, to check compliance with the Registration Regulation, but this has not been formalised in this way before.
Unfortunately, sums don’t always add up! The CQC will most likely feel that having the assurance of a financial professional gives more certainty to the figures.
Do You Need To Worry?
No, not if you are doing the necessary planning for your business. The downside is, if you are a small business, you will probably need to pay your specialist to draft the statement for this purpose.
It’s worth noting that Regulation 13 is not just about being viable at the point of registration, but ongoing.
Is QCS Ready?
Of course! We are ensuring that our policies are ready for this change – but unfortunately, it will only be you as the provider who can get the financial information you need and submit it to the CQC.
As the CQC imminently provides more information on this, we can update you further.
So What did my Boyfriend Land at the End of the Date?
That he was ending it. He’d brought me to a public place so ‘I wouldn’t get upset or make a fuss...' You will have to make your own minds up, whether he was right!
You may find my previous blog “Show me the Money” helpful regarding business planning and finance…and hopefully it will make you chuckle too!
*All information is correct at the time of publishing