Health and Social Care Bill

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Health and Social Care Bill

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
163

167
Significant transactions
After section 51 of the National Health Service Act 2006 insert—
“51A
Significant transactions
(1)
An NHS foundation trust may enter into a significant transaction only
if more than half of the members of the council of governors of the trust
5
voting approve entering into the transaction.
(2)
“Significant transaction” means a transaction or arrangement of such
description as may be specified in the trust’s constitution.
(3)
If an NHS foundation trust does not wish to specify any descriptions of
transaction or arrangement for the purposes of subsection (2), the
10
constitution of the trust must specify that it contains no such
descriptions.”
Mergers, acquisitions, separations and dissolution
168
Mergers
(1)
In section 56 of the National Health Service Act 2006 (mergers), in subsection
15
(1)—
(a)
in paragraph (b), after “NHS trust” insert “established under section
25”, and
(b)
for the words from “authorisation” to the end substitute “the
dissolution of the trusts and the establishment of a new NHS
20
foundation trust.”
(2)
After that subsection insert—
“(1A)
An application under this section may be made only with the approval
of more than half of the members of the council of governors of each
applicant (that is an NHS foundation trust).”
25
(3)
In subsection (2) of that section, omit—
(a)
paragraph (c) (but not the “and” following it), and
(b)
the words from “and must give” to the end.
(4)
Omit subsection (3) of that section.
(5)
For subsection (4) of that section substitute—
30
“(4)
The regulator must grant the application if it is satisfied that such steps
as are necessary to prepare for the dissolution of the trusts and the
establishment of the proposed new trust have been taken.”
(6)
Omit subsections (5) to (10) of that section.
(7)
In subsection (11) of that section, for “On an authorisation being given under
35
this section” substitute “On the grant of the application”.

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
164

169
Acquisitions
After section 56 of the National Health Service Act 2006 insert—
“56A
Acquisitions
(1)
An application may be made jointly by—
(a)
an NHS foundation trust (A), and
5
(b)
another NHS foundation trust or an NHS trust established
under section 25 (B),

to the regulator for the acquisition by A of B.
(2)
An application under this section may be made only with the approval
of more than half of the members of the council of governors of each
10
applicant (that is an NHS foundation trust).
(3)
The application must—
(a)
be supported by the Secretary of State if B is an NHS trust, and
(b)
be accompanied by a copy of the proposed constitution of A,
amended on the assumption that A acquires B.
15
(4)
The regulator must grant the application if it is satisfied that such steps
as are necessary to prepare for the acquisition have been taken.
(5)
On the grant of the application, the proposed constitution has effect,
but where a person who is specified as a director of A in the
constitution has yet to be appointed as such, the directors of A may
20
exercise that person’s functions under the constitution.”
170
Separations
After section 56A of the National Health Service Act 2006 insert—
“56B
Separations
(1)
An application may be made to the regulator by an NHS foundation
25
trust for the dissolution of the trust and the establishment of two or
more new NHS foundation trusts.
(2)
An application under this section may be made only with the approval
of more than half of the members of the council of governors of the
applicant.
30
(3)
The application must, by reference to each of the proposed new trusts—
(a)
specify the property and liabilities proposed to be transferred
to it;
(b)
be accompanied by a copy of its proposed constitution.
(4)
The regulator must grant the application if it is satisfied that such steps
35
as are necessary to prepare for the dissolution of the trust and the
establishment of each of the proposed new trusts have been taken.
(5)
On the grant of the application, the proposed constitution of each of the
new trusts has effect but, in the case of each of the new trusts, the
proposed directors may exercise the functions of the trust on its behalf
40
until a board of directors is appointed in accordance with the
constitution.”

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
165

171
Dissolution
After section 57 of the National Health Service Act 2006 insert—
“57A
Dissolution
(1)
An application may be made by an NHS foundation trust to the
regulator for dissolution.
5
(2)
An application under this section may be made only with the approval
of more than half of the members of the council of governors of the
applicant.
(3)
The regulator must grant the application if it is satisfied that—
(a)
the trust has no liabilities, and
10
(b)
such steps as are necessary to prepare for the dissolution have
been taken.
(4)
Where an application under this section is granted, the regulator must
make an order—
(a)
dissolving the trust in question, and
15
(b)
transferring, or providing for the transfer of, the property of the
trust (if any) to the Secretary of State.”
172
Supplementary
(1)
In section 57 of the National Health Service Act 2006 (mergers:
supplementary), in subsection (1)—
20
(a)
for “an authorisation is given under section 56” substitute “an
application is granted under section 56 or 56B”, and
(b)
at the end insert “or trusts”.
(2)
In subsection (2) of that section—
(a)
for “such an authorisation is given, the Secretary of State” substitute
25
“such an application is granted, the regulator”, and
(b)
in paragraph (a), after “dissolving the” insert “trust or”, and
(c)
in paragraph (b), at the end insert “or trusts”.
(3)
After that subsection insert—
“(2A)
An order under section 56 or 56B is conclusive evidence of
30
incorporation and conclusive evidence that the corporation is an NHS
foundation trust.”
(4)
In subsection (3)(a) of that section, for “section 54(3)” substitute “section 54(4)”.
(5)
In subsection (4) of that section—
(a)
for “section 56(1) and (2)” substitute “sections 56(2) and 56B(3)”, and
35
(b)
for “section 54(4)(a) to (c)” substitute “section 54(4)(a) or (c)”.
(6)
In subsection (5) of that section, after “section 56” insert “or 56A”.
(7)
Omit subsection (6) of that section.
(8)
For the title to that section substitute “Sections 56 to 56B: supplementary”.
(9)
For the cross-heading preceding section 56 of that Act substitute “Mergers,
40
acquisitions and separations”.

Health and Social Care Bill
Part 4 — NHS foundation trusts & NHS trusts
166

(10)
In section 64 of that Act (orders and regulations under Chapter 5 of Part 2 of
that Act), in subsection (4)—
(a)
omit the “or” following paragraph (b), and
(b)
after paragraph (c), insert “, or
“(d)
section 57A.”
5
(11)
After that subsection insert—
“(4A)
The Statutory Instruments Act 1946 applies in relation to the power of
the regulator to make an order under section 57 or 57A as if the
regulator were a Minister of the Crown.”
(12)
In section 271(3)(b) of that Act (territorial limit of exercise of functions under
10
Chapter 5), for “Part 1” substitute “Part 2”.
Failure
173
Repeal of de-authorisation provisions
(1)
Omit section 52C of the National Health Service Act 2006 (guidance etc. on de-
authorisation notices).
15
(2)
Omit sections 53 to 55 of, and Schedule 9 to, that Act (voluntary arrangements
and dissolution); and in consequence of that—
(a)
in section 57 of that Act (as amended by section 172 of this Act)—
(i)
in subsection (3)(a), for “the persons mentioned in section 54(4)”
substitute “another NHS foundation trust, an NHS trust
20
established under section 25 or the Secretary of State”,
(ii)
omit subsection (3)(b), and
(iii)
in subsection (4), for “any of the bodies mentioned in section
54(4)(a) or (c)” substitute “another NHS foundation trust or an
NHS trust established under section 25”,
25
(b)
in section 64(4) of that Act (as amended by section 172 of this Act), omit
paragraph (b), and
(c)
omit section 18(2) to (6) and (11) of the Health Act 2009.
(3)
Omit section 65E of the National Health Service Act 2006 (NHS foundation
trusts: de-authorisation and appointment of administrator).
30
(4)
Omit Schedule 8A to that Act (de-authorised NHS trusts and NHS foundation
trusts).
(5)
Omit section 15 of the Health Act 2009 (which inserts sections 52A to 52E and
Schedule 8A in the National Health Service Act 2006).
(6)
In section 272 of the National Health Service Act 2006 (orders, regulations,
35
rules and directions)—
(a)
in subsection (5), omit paragraph (aa), and
(b)
in subsection (6A), omit “52D(1), 52E(6),”.
(7)
In section 275(1) of that Act (interpretation), in the definition of “NHS trust”—
(a)
omit “, subject to Schedule 8A,”, and
40
(b)
omit “52D(1) or”.
(8)
In section 206(1) of the National Health Service (Wales) Act 2006, in the
definition of “NHS trust”, omit “52D(1) or”.