Health and Social Care (Community Health and Standards) Bill
5:00 pm
Mr David Lammy (Parliamentary Secretary, Department of Health; Tottenham, Labour)
Much of this will have been discussed under part 1. The matter pertains to the failings of a foundation trust and the relationship that the regulator has in that regard. CHAI reports to the regulator in relation to the failings of NHS trusts. If a foundation trust is failing, the independent regulator's
proximity will, in a sense, be no different from the current role of the Secretary of State, in terms of his measures for NHS bodies. The point is simply to allow whoever is best placed to take appropriate action in the event.
The hon. Member for Oxford, West and Abingdon asked why the word ''general'' is necessary in clause 49, as proposed in amendment No. 282. The change ensures that the function of encouraging improvement in health care is overarching. Other functions are read in that context. Clause 72 uses the same drafting advice.
On amendments Nos. 274, 275 and 278, the Government think that they will stay in the same order, to answer the point that the hon. Gentleman raises. We will consult parliamentary counsel on the implications of the query and undertake to write to him and his colleagues if there is a change to that order once we have received clarification.
On the issue of a change of definition, foundation trusts are health service hospitals by virtue of paragraph 40 of schedule 4. I emphasise that. They are not independent hospitals. It is important to make that point because it pertains to some of the issues raised by the hon. Member for South Cambridgeshire. Given that NHS foundation trusts are within the NHS family, they are under a statutory duty to be economic, efficient and effective in exercising their functions. It is in that regard that the value-for-money relationship that CHAI must rightly have with them is exercised. CHAI will consider value for money in foundation trusts, as it does in its reviews of all trusts. That must be important given that public money funds NHS hospitals. Value for money must be a key factor in a way that it would not be, were the hospitals independent.