Health and Social Care Bill (HC Bill 221)

(3) The reference in subsection (2)(b) to the delivery of services is a
reference to their delivery at the point when they are received by users.

(4) In this section, “health services” means any services that are (or are to
be) provided as part of the health service.

5Functions in relation to information

13Q Information on safety of services provided by the health service

(1) The Board must establish and operate systems for collecting and
analysing information relating to the safety of the services provided by
the health service.

(2) 10The Board must make information collected by virtue of subsection (1),
and any other information obtained by analysing it, available to such
persons as the Board considers appropriate.

(3) The Board may impose charges, calculated on such basis as it considers
appropriate, in respect of information made available by it under
15subsection (2).

(4) The Board must give advice and guidance, to such persons as it
considers appropriate, for the purpose of maintaining and improving
the safety of the services provided by the health service.

(5) The Board must monitor the effectiveness of the advice and guidance
20given by it under subsection (4).

(6) A commissioning consortium must have regard to any advice or
guidance given to it under subsection (4).

(7) The Board may arrange for any other person (including another NHS
body) to exercise any of the Board’s functions under this section.

(8) 25Arrangements made under subsection (7) do not affect the liability of
the Board for the exercise of any of its functions.

13R Guidance in relation to processing of information

(1) The Board must publish guidance for registered persons on the practice
to be followed by them in relation to the processing of—

(a) 30patient information, and

(b) any other information obtained or generated in the course of the
provision of the health service.

(2) Registered persons who carry on an activity which involves, or is
connected with, the provision of health care must have regard to any
35guidance published under this section.

(3) In this section, “patient information”, “processing” and “registered
person” have the same meanings as in section 20A of the Health and
Social Care Act 2008.

Business plan and report

13S Business plan

(1) Before the start of each financial year, the Board must publish a
business plan setting out how it proposes to exercise its functions in
5that year and each of the next two financial years.

(2) The business plan must, in particular, explain how the Board proposes
to discharge its duties under—

(a) sections 13E and 13P, and

(b) sections 223C to 223E.

(3) 10The business plan must, in particular, explain how the Board proposes
to achieve the objectives, and comply with the requirements, specified
in the mandate for the first financial year to which the plan relates.

(4) The Board may revise the plan.

(5) The Board must publish any revised plan.

13T 15Annual report

(1) As soon as practicable after the end of each financial year, the Board
must publish an annual report on how it has exercised its functions
during the year.

(2) The annual report must, in particular, contain an assessment of—

(a) 20the extent to which it met any objectives or requirements
specified in the mandate for that year,

(b) the extent to which it gave effect to the proposals for that year
in its business plan, and

(c) how effectively it discharged its duties under sections 13E and
2513P.

(3) The Board must—

(a) lay the annual report before Parliament, and

(b) once it has done so, send a copy of it to the Secretary of State.

(4) The Secretary of State must, having considered the annual report, set
30out in a letter to the Board the Secretary of State’s assessment of the
Board’s performance of its functions in the financial year in question.

(5) The letter must, in particular, contain the Secretary of State’s
assessment of the matters mentioned in subsection (2)(a) to (c).

(6) The Secretary of State must—

(a) 35publish the letter to the Board, and

(b) lay it before Parliament.

Additional powers

13U Establishment of pooled funds

(1) The Board and one or more commissioning consortia may establish and
40maintain a pooled fund.

(2) A pooled fund is a fund—

(a) which is made up of contributions by the bodies which
established it, and

(b) out of which payments may be made, with the agreement of
those bodies, towards expenditure incurred in the discharge of
5any of their commissioning functions.

(3) In this section, “commissioning functions” means functions in
arranging for the provision of services as part of the health service.

13V Board’s power to generate income, etc.

(1) The Board has power to do anything specified in section 7(2) of the
10Health and Medicines Act 1988 (provision of goods, services, etc.) for
the purpose of making additional income available for improving the
health service.

(2) The Board may exercise a power conferred by subsection (1) only to the
extent that its exercise does not to any significant extent interfere with
15the performance by the Board of its functions.

13W Power to make grants etc.

(1) The Board may make payments by way of grant or loan to a voluntary
organisation which provides or arranges for the provision of services
which are similar to the services in respect of which the Board has
20functions.

(2) The payments may be made subject to such terms and conditions as the
Board considers appropriate.

13X Board’s incidental powers: further provision

The power conferred on the Board by section 2 includes in particular
25power to—

(a) enter into agreements,

(b) acquire and dispose of property, and

(c) accept gifts (including property to be held on trust for the
purposes of the Board).

30Exercise of functions of Board

13Y Exercise of functions

(1) This section applies to functions exercisable by the Board under or by
virtue of this Act or any prescribed provision of any other Act.

(2) The Board may arrange for any such function to be exercised by or
35jointly with—

(a) a Special Health Authority,

(b) a commissioning consortium, or

(c) such other body as may be prescribed.

(3) Regulations may provide that the power in subsection (2) does not
40apply in relation to a function of a prescribed description.

(4) Where any functions are (by virtue of subsection (2)) exercisable jointly
by the Board and another body, they may be exercised by a joint
committee of the Board and the other body.

(5) Arrangements under this section may be on such terms and conditions
(including terms as to payment) as may be agreed between the Board
and the other party to the arrangements.

(6) Arrangements made under this section do not affect the liability of the
5Board for the exercise of any of its functions.

Power to confer additional functions

13Z Power to confer additional functions on the Board

(1) Regulations may provide that the Board is to have such additional
functions in relation to the health service as may be specified in the
10regulations.

(2) A function may be specified in regulations under subsection (1) only if
the function is connected to another function of the Board.

Intervention powers

13Z1 Failure by the Board to discharge any of its functions

(1) 15The Secretary of State may give a direction to the Board if the Secretary
of State considers that—

(a) the Board—

(i) is failing or has failed to discharge any of its functions,
or

(ii) 20is failing or has failed properly to discharge any of its
functions, and

(b) the failure is significant.

(2) A direction under subsection (1) may direct the Board to discharge such
of those functions, and in such manner and within such period or
25periods, as may be specified in the direction.

(3) If the Board fails to comply with a direction under subsection (1), the
Secretary of State may—

(a) discharge the functions to which it relates, or

(b) make arrangements for any other person to discharge them on
30the Secretary of State’s behalf.

(4) Where the Secretary of State exercises a power under subsection (1) or
(3), the Secretary of State must publish the reasons for doing so.

Disclosure of information

13Z2 Permitted disclosures of information

(1) 35The Board may disclose information obtained by it in the exercise of its
functions if—

(a) the information has previously been lawfully disclosed to the
public,

(b) the disclosure is made under or pursuant to regulations under
40section 113 or 114 of the Health and Social Care (Community
Health and Standards) Act 2003 (complaints about health care
or social services),

(c) the disclosure is made in accordance with any enactment or
court order,

(d) the disclosure is necessary or expedient for the purposes of
protecting the welfare of any individual,

(e) 5the disclosure is made to any person in circumstances where it
is necessary or expedient for the person to have the information
for the purpose of exercising functions of that person under any
enactment,

(f) the disclosure is made for the purpose of facilitating the exercise
10of any of the Board’s functions,

(g) the disclosure is made in connection with the investigation of a
criminal offence (whether or not in the United Kingdom), or

(h) the disclosure is made for the purpose of criminal proceedings
(whether or not in the United Kingdom).

(2) 15This section has effect notwithstanding any rule of common law which
would otherwise prohibit or restrict the disclosure.

Interpretation

13Z3 Interpretation

In this Chapter, “the health service” means the health service in
20England.”

(2) In section 272 of that Act (orders, regulations, rules and directions), in
subsection (6) after paragraph (za) insert—

“(zb) regulations under section 13Z,”.

21 Financial arrangements for the Board

25Before the cross-heading preceding section 224 of the National Health Service
Act 2006 insert—

“The Board

223B Funding of the Board

(1) The Secretary of State must pay to the Board in respect of each financial
30year sums not exceeding the amount allotted for that year by the
Secretary of State towards meeting the expenditure of the Board which
is attributable to the performance by it of its functions in that year.

(2) An amount is allotted to the Board for a financial year under this
section when the Board is notified in writing by the Secretary of State
35that the amount is allotted to it for that year.

(3) The Secretary of State may make a new allotment under this section
increasing or reducing the allotment previously so made only if—

(a) the Board agrees to the change, or

(b) the Secretary of State considers that there are exceptional
40circumstances that make a new allotment necessary.

(4) The Secretary of State may give directions to the Board with respect to
the payment of sums by it to the Secretary of State in respect of charges
or other sums referable to the valuation or disposal of assets.

(5) Sums falling to be paid to the Board under this section are payable
subject to such conditions as to records, certificates or otherwise as the
Secretary of State may determine.

223BC Financial duties of the Board: expenditure

(1) 5The Board must ensure that total health expenditure in respect of each
financial year does not exceed the aggregate of—

(a) the amount allotted to the Board for that year under section
223B,

(b) any sums received by the Board or commissioning consortia in
10that year under any provision of this Act (other than sums
received by the Board under section 223B or by commissioning
consortia under section 223G), and

(c) any sums received by the Board or commissioning consortia in
that year otherwise than under this Act for the purpose of
15enabling it or them to defray such expenditure.

(2) In this section, “total health expenditure”, in relation to a financial year,
means—

(a) expenditure which is attributable to the performance by the
Board of its functions in that year, other than sums paid by it
20under section 223G, and

(b) expenditure which is attributable to the performance by
commissioning consortia of their functions in that year.

(3) The Secretary of State may by directions determine whether
expenditure by the Board or a commissioning consortium which is of a
25description specified in the directions must, or must not, be treated for
the purposes of this section as part of total health expenditure.

(4) The Secretary of State may by directions determine the extent to which,
and the circumstances in which, sums received by the Board or a
commissioning consortium under section 223B or (as the case may be)
30223G but not yet spent must be treated for the purposes of this section
as part of total health expenditure, and to which financial year’s
expenditure they must be attributed.

(5) The Secretary of State may by directions require the Board to use
banking facilities specified in the direction for any purposes so
35specified.

223D Financial duties of the Board: controls on total resource use

(1) In this Chapter—

• “total capital resource use”, in relation to a financial year, means
  the use of capital resources in that year by the Board and
  40commissioning consortia (taken together);

• “total revenue resource use”, in relation to a financial year, means
  the use of revenue resources in that year by the Board and
  commissioning consortia (taken together).

(2) The Board must ensure that total capital resource use in a financial year
45does not exceed the amount specified by the Secretary of State.

(3) The Board must ensure that total revenue resource use in a financial
year does not exceed the amount specified by the Secretary of State.

(4) The Secretary of State may give directions, in relation to a financial
year, specifying descriptions of resources which must, or must not, be
treated as capital resources or revenue resources for the purposes of
this Chapter.

(5) 5The Secretary of State may give directions, in relation to a financial
year, specifying uses of capital resources or revenue resources which
must not be taken into account for the purposes of this Chapter.

(6) The Secretary of State may give directions, in relation to a financial
year, specifying uses of capital resources or revenue resources which
10must be taken into account for the purposes of this section.

(7) The amount specified for the purposes of subsection (2) or (3) may be
varied only if—

(a) the Board agrees to the change, or

(b) the Secretary of State considers that there are exceptional
15circumstances which make the variation necessary.

(8) Any reference in this Chapter to the use of capital resources or revenue
resources is a reference to their expenditure, consumption or reduction
in value.

223E Financial duties of the Board: additional controls on resource use

(1) 20The Secretary of State may direct the Board to ensure that total capital
resource use in a financial year which is attributable to matters
specified in the direction does not exceed an amount so specified.

(2) The Secretary of State may direct the Board to ensure that total revenue
resource use in a financial year which is attributable to matters
25specified in the direction does not exceed an amount so specified.

(3) The Secretary of State may direct the Board to ensure —

(a) that total revenue resource use in a financial year which is
attributable to such prescribed matters relating to
administration as are specified in the direction does not exceed
30an amount so specified;

(b) that the Board’s use of revenue resources in a financial year
which is attributable to such prescribed matters relating to
administration as are specified in the direction does not exceed
an amount so specified.

(4) 35The Secretary of State may give directions, in relation to a financial
year, specifying uses of capital resources or revenue resources which
must, or must not, be taken into account for the purposes of subsection
(1) or (as the case may be) subsection (2) or (3).

(5) The Secretary of State may not give a direction under subsection (1) or
40(2) unless the direction is for the purpose of complying with a limit
imposed by the Treasury.

223F Power to establish contingency fund

(1) The Board may use a proportion of the sums paid to it under section
223B to establish a contingency fund.

(2) 45The Board may make a payment out of the fund where the payment is
necessary in order to enable—

(a) the Board to discharge any of its commissioning functions, or

(b) a commissioning consortium to discharge any of its functions.

(3) The Board must publish guidance as to how it proposes to exercise its
powers to make payments out of the contingency fund.

(4) 5In this section, “commissioning functions” means functions in
arranging for the provision of services as part of the health service.”

Further provision about commissioning consortia

22 Commissioning consortia: establishment etc.

(1) After Chapter A1 of Part 2 of the National Health Service Act 2006 insert—

“CHAPTER A2 10Commissioning consortia

Establishment of commissioning consortia

14A General duties of Board in relation to commissioning consortia

(1) The Board must exercise its functions under this Chapter so as to ensure
that at any time after the day specified in writing by the Secretary of
15State for the purposes of this section each provider of primary medical
services is a member of a commissioning consortium.

(2) The Board must exercise its functions under this Chapter so as to ensure
that at any time after the day so specified the areas specified in the
constitutions of commissioning consortia—

(a) 20together cover the whole of England, and

(b) do not coincide or overlap.

(3) For the purposes of this Chapter, “provider of primary medical
services” means a person who is a party to an arrangement mentioned
in subsection (4).

(4) 25The arrangements mentioned in this subsection are—

(a) a general medical services contract to provide primary medical
services of a prescribed description,

(b) arrangements under section 83(2) for the provision of primary
medical services of a prescribed description,

(c) 30section 92 arrangements for the provision of services of primary
medical services of a prescribed description.

(5) Where a person who is a provider of primary medical services is a party
to more than one arrangement mentioned in subsection (4), the person
is to be treated for the purposes of this Chapter as a separate provider
35of primary medical services in respect of each of those arrangements.

(6) Where two or more individuals practising in partnership are parties to
an arrangement mentioned in subsection (4), the partnership is to be
treated for the purposes of this Chapter as a provider of primary
medical services (and the individuals are not to be so treated).

(7) Where two or more individuals are parties to an arrangement
mentioned in subsection (4) but are not practising in partnership, those
persons collectively are to be treated for the purposes of this Chapter as
a provider of primary medical services (and the individuals are not to
5be so treated).

14B Applications for the establishment of commissioning consortia

(1) An application for the establishment of a commissioning consortium
may be made to the Board.

(2) The application may be made by any two or more persons each of
10whom—

(a) is or wishes to be a provider of primary medical services, and

(b) wishes to be a member of the commissioning consortium.

(3) The application must be accompanied by—

(a) a copy of the proposed constitution of the commissioning
15consortium,

(b) the name of the person whom the consortium wishes the Board
to appoint as its accountable officer (as to which see paragraph
11 of Schedule 1A), and

(c) such other information as the Board may specify in a document
20published for the purposes of this section.

(4) At any time before the Board determines the application—

(a) a person who is or wishes to be a provider of primary medical
services (and wishes to be a member of the consortium) may
become a party to the application, with the agreement of the
25Board and the existing applicants;

(b) any of the applicants may withdraw.

(5) At any time before the Board determines the application, the applicants
may modify the proposed constitution with the agreement of the
Board.

(6) 30Part 1 of Schedule 1A makes provision about the constitution of a
commissioning consortium.

14C Determination of applications

(1) The Board must grant an application under section 14B if it is satisfied
as to the following matters.

(2) 35Those matters are—

(a) that the constitution complies with the requirements of Part 1 of
Schedule 1A and is otherwise appropriate,

(b) that each of the members specified in the constitution will be a
provider of primary medical services on the date the
40consortium is established,

(c) that the area specified in the constitution is appropriate,

(d) that it would be appropriate for the Board to appoint, as the
accountable officer of the consortium, the person named by the
consortium under section 14B(3)(b),

(e) that the applicants have made appropriate arrangements to
ensure that the commissioning consortium will be able to
discharge its functions,

(f) that the applicants have made appropriate arrangements to
5ensure that the consortium will have a governing body which
satisfies any requirements imposed by or under this Act and is
otherwise appropriate, and

(g) such other matters as may be prescribed.

(3) Regulations may make provision—

(a) 10as to factors which the Board must or may take into account in
deciding whether it is satisfied as to the matters mentioned in
subsection (2);

(b) as to the procedure for the making and determination of
applications under section 14B.

14D 15Effect of grant of application

(1) If the Board grants an application under section 14B—

(a) a commissioning consortium is established, and

(b) the proposed constitution has effect as the commissioning
consortium’s constitution.

(2) 20Part 2 of Schedule 1A makes further provision about commissioning
consortia.

Variation of constitution

14E Applications for variation of constitution

(1) A commissioning consortium may apply to the Board to vary its
25constitution (including doing so by varying its area or its list of
members).

(2) If the Board grants the application, the constitution of the
commissioning consortium has effect subject to the variation.

(3) Regulations may make provision—

(a) 30as to the circumstances in which the Board must or may grant,
or must or may refuse, applications under this section;

(b) as to factors which the Board must or may take into account in
determining whether to grant such applications;

(c) as to the procedure for the making and determination of such
35applications.

14F Variation of constitution otherwise than on application

(1) The Board may vary the area specified in the constitution of a
commissioning consortium.

(2) The Board may—

(a) 40add any person who is a provider of primary medical services
to the list of members specified in the constitution of a
commissioning consortium;

(b) remove any person from such a list.

(3) The power conferred by subsection (1) or (2) is exercisable if—