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CQC Guidance for Financial Viability Now Available
Last week I wrote regarding the CQC's changes regarding financial viability. You can find that blog here.
Just when I thought the day was over on Friday an email pinged in with a CQC update. The CQC has provided clarification and guidance for their newly requested statement of financial viability being asked for from 12 February 2018.
Refreshingly, the first paragraph read, ‘In our January bulletin, we updated you on how we will assess the financial viability of providers applying for registration. This text did not make it clear that this is at the point of registration and only for some providers…’
So to recap, the CQC will be asking for a Statement of Financial Viability that new providers will need to provide at the registration application stage.
The statement can be completed by an accountant or accountancy company or a bank or financial services company regulated by the Financial Conduct Authority.
Key Points of Clarification:
1. Who Needs to Provide a Statement of Financial Viability?
The key points to take from this message are under Regulation 13 of The CQC Registration Regulations 2009 . This is to take place for new providers at the point of the registration application.
There are a few circumstances where the CQC may also ask for a Statement of Financial Viability from an existing provider where;
- The CQC has intelligence that a provider does not have the finances to provide the service set out in their Statement of Purpose
- A provider seeks to make changes to their registration seeking to increase in scale.
2. Who is Exempt?
Regulation 13 states that the NHS bodies listed below are exempt, as an NHS contract provides the CQC with the assurance it needs:
- NHS GP practices
- NHS Dentists
- NHS 111, out of hours and urgent care services
- Non-NHS organisations with NHS contracts
3. Template Letter
The CQC provides a template letter (located half-way down the page when you click on this link) which they suggest you use. I looked through it carefully. It really does not ask for much! As a provider, it asks for your details and signatures and basically for the financial specialist to say 'yay' or 'nay' as to your Financial Viability.
Important to Note
In amongst the text on their website, the CQC mentioned that additional information may be asked for. Looking at the template, I am not surprised! I would certainly still want to see a Business Plan and the CQC says they may request this.
QCS policies are being updated to reflect this new information…we ensure we have our finger on the pulse with new CQC updates…even if it is after 6 pm on a Friday!
*All information is correct at the time of publishing