National Health Service Act 2006

[F165D[F2NHS foundation trusts: appointment of trust special administrator]E+W

[F3(1)This section applies if [F4NHS England] is satisfied that [F5—

(a)]an NHS foundation trust is, or is likely to become, unable to pay its debts] [F6, or

(b)there is a serious failure by an NHS foundation trust to provide services that are of sufficient quality to be provided under this Act and it is appropriate to make an order under subsection (2).]

[F7(1A)This section also applies if the Care Quality Commission—

(a)is satisfied that there is a serious failure by an NHS foundation trust to provide services that are of sufficient quality to be provided under this Act and that it is appropriate to make an order under subsection (2),

(b)informs [F8NHS England] that it is satisfied as mentioned in paragraph (a) and gives [F8NHS England] its reasons for being so satisfied, and

(c)requires [F9NHS England] to make an order under subsection (2).]

[F3(2)[F10NHS England] may [F11or, where this section applies as a result of subsection (1A), must] make an order authorising the appointment of a trust special administrator to exercise the functions of the governors, chairman and directors of the trust.]

[F12(2A)Where NHS England is not required to make an order under this section as a result of subsection (1A), it may do so only if the Secretary of State has approved the making of the order.]

[F3(3)As soon as reasonably practicable after the making of an order under subsection (2), the Care Quality Commission must provide to [F13NHS England] a report on the safety and quality of the services that the trust provides under this Act.]

[F14(3A)Before imposing a requirement as mentioned in subsection (1A)(c), the Care Quality Commission must—

(a)consult the Secretary of State and [F15NHS England], and

(b)having done that, consult—

(i)the trust,

(ii)F16... and

(iii)any other person to which the trust provides services under this Act and which the Commission considers it appropriate to consult.]

[F17(4)Before making an order under this section in a case where it is not required to do so as a result of subsection (1A), NHS England must consult—

(a)the trust,

(b)any person to which the trust provides services under this Act and which NHS England considers it appropriate to consult, and

(c)the Care Quality Commission.]

[F18(5)An order under subsection (2) must specify the date when the appointment is to take effect, which must be within the period of 5 working days beginning with the day on which the order is made.

(6)[F19NHS England] must lay before Parliament (with the statutory instrument containing the order) a report stating the reasons for making the order.

(7)If [F20NHS England] makes an order under subsection (2), it must—

(a)appoint a person as the trust special administrator with effect from the day specified in the order, and

(b)publish the name of the person appointed.

(8)A person appointed as a trust special administrator under this section holds and vacates office in accordance with the terms of the appointment.

(9)A person appointed as a trust special administrator under this section must manage the trust's affairs, business and property, and exercise the trust special administrator's functions, so as to achieve the objective set out in section 65DA as quickly and as efficiently as is reasonably practicable.

(10)When the appointment of a trust special administrator under this section takes effect, the trust's governors, chairman and executive and non-executive directors are suspended from office; and Chapter 5 of this Part, in its application to the trust, is to be read accordingly.

(11)But subsection (10) does not affect the employment of the executive directors or their membership of any committee or sub-committee of the trust.

[F21(12)NHS England may pay remuneration and expenses to a trust special administrator appointed under this section.]]]

Textual Amendments

F1Pt. 2 Ch. 5A inserted (15.2.2010) by Health Act 2009 (c. 21), ss. 16, 40(1); S.I. 2010/30, art. 3(a)

F2S. 65D heading substituted (1.11.2012) by virtue of Health and Social Care Act 2012 (c. 7), ss. 174(6), 306(4); S.I. 2012/2657, art. 2(2)

F5S. 65D(1)(a): words in s. 65D(1) renumbered as s. 65D(1)(a) (15.7.2014) by Care Act 2014 (c. 23), ss. 84(1)(a), 127(1); S.I. 2014/1714, art. 3(2)(a)

F6S. 65D(1)(b) and preceding word inserted (15.7.2014) by Care Act 2014 (c. 23), ss. 84(1)(b), 127(1); S.I. 2014/1714, art. 3(2)(a)

F7S. 65D(1A) inserted (15.7.2014) by Care Act 2014 (c. 23), ss. 84(2), 127(1); S.I. 2014/1714, art. 3(2)(a)

F11Words in s. 65D(2) inserted (15.7.2014) by Care Act 2014 (c. 23), ss. 84(3), 127(1); S.I. 2014/1714, art. 3(2)(a)