The Competition and Markets Authority (CMA) has recently opened an investigation in the care homes industry over concerns that the industry is breaching consumer laws.
On 13th June 2017, the competition watchdog opened an investigation into several care home providers for two primary reasons:
The care homes sector is reportedly worth around £15.9 billion a year. In the U.K., the six biggest providers have a combined share of 11% of all care homes and 17% of care home beds.
There are consumer protection concerns that some care homes are charging families for long periods of time after a resident has passed away. There are also concerns surrounding charges and large upfront fees.
The CMA’s focus in their market study has been to see how well the market is operating and whether their residents are being treated fairly. A case timetable has been set out for an update paper and final report.
The purpose of the market study is to address the following issues:
The CMA’s update report contains detailed recommendations and suggestions for residents and their families.
Some of the recommendations are as follows:
CMA’s acting chief executive, Andrea Coscelli, notes the burning concerns:
“…some of the most vulnerable people in our society use care homes, often moving to them under extremely difficult circumstances. It’s therefore essential they are able to make informed choices, understand how services will be paid for, and be confident they will be fairly treated and able to complain effectively if they have any concerns.”
Residents being well-informed and having a proper choice may be hindered if the care home industry isn’t competitive enough. To ensure fair choice, significant clarity is required for users and their families.
Care home providers are being assessed in accordance with their compliance or non-compliance of the Consumer Rights Act 2015. The key protection offered by the act is that terms and conditions within the contracts must be fair and transparent. Perhaps where families are made to pay for a care home months after the resident has died may not be seen as a fair term. If the CMA agrees, there could be changes coming to the industry soon.
The CMA also noted that:
“…in any case many are simply not prepared, able or supported in a way that would allow them to make good, well-informed, choices.”
The content of this post/page was considered accurate at the time of the original posting and/or at the time of any posted revision. The content of this page may, therefore, be out of date. The information contained within this page does not constitute legal advice. Any reliance you place on the information contained within this page is done so at your own risk.
Why we do this is simple - we firmly believe that everyone should be entitled to access to justice when they need it.
We back our promises up in writing, and law firms are stringently regulated so you can rest assured that you are in safe hands.