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65 | Interpretation of this Chapter |
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“authorisation” means an authorisation under section 35 or 56, |
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“health service body” means a Strategic Health Authority, a Primary Care |
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Trust, an NHS trust, a Special Health Authority or an NHS foundation |
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(2) | Any references in this Chapter to goods and services include, in particular, |
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facilities, education and training. |
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Intervention orders and default powers |
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(1) | This section applies to NHS bodies other than NHS foundation trusts. |
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(2) | If the Secretary of State— |
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(a) | considers that a body to which this section applies is not performing |
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one or more of its functions adequately or at all, or that there are |
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significant failings in the way the body is being run, and |
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(b) | is satisfied that it is appropriate for him to intervene under this section, |
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| he may make an order under this section in respect of the body (an |
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(3) | An intervention order may make any provision authorised by section 67 |
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(including any combination of such provisions). |
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67 | Effect of intervention orders |
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(a) | “member” means a member of a Strategic Health Authority, Primary |
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Care Trust, Special Health Authority or Local Health Board, or a |
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member of the board of directors of an NHS trust, |
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(b) | “employee member” means a member of a Strategic Health Authority, |
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Primary Care Trust, Special Health Authority or Local Health Board |
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who is an officer of the body, or an executive director of an NHS trust. |
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(2) | An intervention order may provide for the removal from office of— |
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(b) | those specified in the order, |
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| and for their replacement with individuals specified in or determined in |
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accordance with the order (who need not be the same in number as the |
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(3) | An intervention order may provide for the suspension (either wholly, or in |
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respect only of powers and duties specified in or determined in accordance |
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(b) | those specified in the order, |
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| and for the powers of the suspended members to be exercised, and their duties |
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performed, during their suspension by individuals specified in or determined |
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in accordance with the order (who need not be the same in number as the |
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(4) | The powers and duties referred to in subsection (3) are, in the case of an |
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employee member, only those which he has in his capacity as a member. |
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(5) | An intervention order may contain directions to the body to which it relates to |
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secure that a function of the body specified in the directions— |
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(a) | is performed, to the extent specified in the directions, on behalf of the |
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body and at its expense, by such person as is specified in the |
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(b) | is so performed in such a way as to achieve such objectives as are so |
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| and the directions may require that any contract or other arrangement made by |
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the body with that person contains such terms and conditions as may be so |
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(6) | If the person referred to in subsection (5)(a) is a body to which section 66 |
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applies, the functions of that body include the performance of the functions |
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specified in the directions under subsection (5). |
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(7) | Subsection (8) applies in relation to any provision in this Act, or in any order |
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or regulations made, or directions given, under this Act, relating to— |
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(a) | the membership of the body to which an intervention order relates (or |
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in the case of an NHS trust to the membership of its board of directors), |
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(b) | the procedure of the body. |
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(8) | The intervention order may provide in relation to any provision specified in |
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(a) | that it does not apply in relation to the body while the order remains in |
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(b) | that it applies in relation to the body, while the order remains in force, |
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with modifications specified in the order. |
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(9) | An intervention order may contain such supplementary directions to the body |
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to which it relates as the Secretary of State considers appropriate for the |
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purpose of giving full effect to the order. |
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(1) | This section applies to NHS bodies other than NHS foundation trusts. |
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(2) | If the Secretary of State considers that a body to which this section applies— |
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(a) | has failed to carry out any functions conferred or imposed on it by or |
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(b) | has in carrying out those functions failed to comply with any |
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regulations or directions relating to those functions, |
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| he may after such inquiry as he considers appropriate make an order declaring |
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(3) | The members of the body in default must immediately vacate their office, and |
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(a) | must provide for the appointment, in accordance with the provisions |
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of this Act, of new members of the body, and |
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(b) | may contain such provisions as seem to the Secretary of State expedient |
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for authorising any person to act in the place of the body pending the |
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appointment of new members. |
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(4) | An order under this section may contain such supplementary and incidental |
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provisions as appear to the Secretary of State to be necessary or expedient, |
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(a) | provision for the transfer to the Secretary of State of property and |
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liabilities of the body in default, and |
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(b) | where any such order is varied or revoked by a subsequent order, |
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provision in the subsequent order for the transfer to the body in default |
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of any property or liabilities acquired or incurred by the Secretary of |
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State in discharging any of the functions transferred to him. |
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Protection of members and officers of health service bodies |
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69 | Protection from personal liability |
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(1) | Section 265 of the Public Health Act 1875 (c. 55) (which relates to the protection |
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of members and officers of certain authorities) has effect as if there were |
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included in the authorities referred to in that section a reference to an NHS |
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(2) | Any reference in that section to the Public Health Act 1875 has effect as if it |
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included a reference to this Act and the National Health Service (Wales) Act |
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Transfer of residual liabilities |
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70 | Transfer of residual liabilities |
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(1) | If a Strategic Health Authority, a Primary Care Trust, an NHS trust or a Special |
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Health Authority ceases to exist, the Secretary of State must exercise his |
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functions so as to secure that all of the body’s liabilities (other than any |
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criminal liabilities) are dealt with. |
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(2) | A liability is dealt with by being transferred to an NHS body, the Secretary of |
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State or the Welsh Ministers. |
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Losses and liabilities of certain health service bodies |
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71 | Schemes for meeting losses and liabilities etc of certain health service bodies |
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(1) | The Secretary of State may by regulations made with the consent of the |
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Treasury establish a scheme whereby any of the bodies specified in subsection |
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(2) may make provision to meet— |
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(a) | expenses arising from any loss of or damage to their property, and |
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(b) | liabilities to third parties for loss, damage or injury arising out of the |
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carrying out of the functions of the bodies concerned. |
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(2) | The bodies referred to in subsection (1) are— |
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(a) | Strategic Health Authorities, |
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(d) | Special Health Authorities, |
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(e) | NHS foundation trusts, |
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(f) | the Commission for Healthcare Audit and Inspection, and |
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(g) | the Health Protection Agency, |
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| but a scheme under this section may limit the class or description of bodies |
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which are eligible to participate in it. |
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(3) | A scheme under this section may, in particular— |
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(a) | provide for the scheme to be administered by the Secretary of State |
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or by a Strategic Health Authority, Primary Care Trust, NHS trust, |
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Special Health Authority or NHS foundation trust specified in the |
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(b) | require any body which participates in the scheme to make payments |
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in accordance with the scheme, and |
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(c) | provide for the making of payments for the purposes of the scheme by |
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(4) | If the Secretary of State so directs, a body which is eligible to participate in a |
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(5) | The Secretary of State may not make a direction under subsection (4) in relation |
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to an NHS foundation trust. |
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(6) | Where a scheme provides for the scheme to be administered by the Secretary |
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of State, a Strategic Health Authority, Primary Care Trust, NHS trust, Special |
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Health Authority or NHS foundation trust must carry out such functions in |
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connection with the administration of the scheme by the Secretary of State as |
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(7) | Subsections (4) and (6) do not affect any other power of direction of the |
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(8) | A person or body administering a scheme under this section does not require |
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permission under any provision of the Financial Services and Markets Act 2000 |
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(c. 8) as respects activities carried out under the scheme. |
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Co-operation between NHS bodies |
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72 | Co-operation between NHS bodies |
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It is the duty of NHS bodies to co-operate with each other in exercising their |
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Directions and regulations under this Part |
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73 | Directions and regulations under this Part |
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(1) | This section applies to directions and regulations under any of— |
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(2) | Except in prescribed cases, the directions and regulations must not preclude a |
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person or body by whom the function is exercisable apart from the directions |
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or regulations from exercising the function. |
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Local authorities and the NHS |
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74 | Supply of goods and services by local authorities |
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(1) | In the Local Authorities (Goods and Services) Act 1970 (c. 39) the expression |
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(a) | any Strategic Health Authority, Special Health Authority or Primary |
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(b) | so far as relates to his functions under this Act, the Secretary of State. |
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(2) | Subsection (1) has effect as if made by an order under section 1(5) of the Local |
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Authorities (Goods and Services) Act 1970 and may be varied or revoked by |
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(3) | Each local authority must make services available to each NHS body acting in |
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its area, so far as is reasonably necessary and practicable to enable the NHS |
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body to discharge its functions under this Act. |
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(4) | “Services” means the services of persons employed by the local authority for |
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the purposes of its functions under the Local Authority Social Services Act 1970 |
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75 | Arrangements between NHS bodies and local authorities |
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(1) | The Secretary of State may by regulations make provision for or in connection |
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with enabling prescribed NHS bodies (on the one hand) and prescribed local |
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authorities (on the other) to enter into prescribed arrangements in relation to |
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(a) | prescribed functions of the NHS bodies, and |
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(b) | prescribed health-related functions of the local authorities, |
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| if the arrangements are likely to lead to an improvement in the way in which |
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those functions are exercised. |
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(2) | The arrangements which may be prescribed include arrangements— |
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(a) | for or in connection with the establishment and maintenance of a |
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(i) | which is made up of contributions by one or more NHS bodies |
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and one or more local authorities, and |
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(ii) | out of which payments may be made towards expenditure |
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incurred in the exercise of both prescribed functions of the NHS |
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body or bodies and prescribed health-related functions of the |
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authority or authorities, |
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(b) | for or in connection with the exercise by an NHS body on behalf of a |
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local authority of prescribed health-related functions of the authority in |
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conjunction with the exercise by the NHS body of prescribed functions |
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(c) | for or in connection with the exercise by a local authority on behalf of |
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an NHS body of prescribed functions of the NHS body in conjunction |
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with the exercise by the local authority of prescribed health-related |
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functions of the local authority, |
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(d) | as to the provision of staff, goods or services in connection with any |
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arrangements mentioned in paragraph (a), (b) or (c), |
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(e) | as to the making of payments by a local authority to an NHS body in |
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connection with any arrangements mentioned in paragraph (b), |
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(f) | as to the making of payments by an NHS body to a local authority in |
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connection with any arrangements mentioned in paragraph (c). |
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(3) | Regulations under this section may make provision— |
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(a) | as to the cases in which NHS bodies and local authorities may enter into |
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(b) | as to the conditions which must be satisfied in relation to prescribed |
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arrangements (including conditions in relation to consultation), |
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(c) | for or in connection with requiring the consent of the Secretary of State |
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to the operation of prescribed arrangements (including provision in |
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relation to applications for consent, the approval or refusal of such |
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applications and the variation or withdrawal of approval), |
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(d) | in relation to the duration of prescribed arrangements, |
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(e) | for or in connection with the variation or termination of prescribed |
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(f) | as to the responsibility for, and the operation and management of, |
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(g) | as to the sharing of information between NHS bodies and local |
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(4) | The provision which may be made by virtue of subsection (3)(f) includes |
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provision in relation to— |
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(a) | the formation and operation of joint committees of NHS bodies and |
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(b) | the exercise of functions which are the subject of prescribed |
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arrangements (including provision in relation to the exercise of such |
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functions by joint committees or employees of NHS bodies and local |
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(c) | the drawing up and implementation of plans in respect of prescribed |
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(d) | the monitoring of prescribed arrangements, |
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(e) | the provision of reports on, and information about, prescribed |
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(f) | complaints and disputes about prescribed arrangements, |
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(g) | accounts and audit in respect of prescribed arrangements. |
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(5) | Arrangements made by virtue of this section do not affect— |
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(a) | the liability of NHS bodies for the exercise of any of their functions, |
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(b) | the liability of local authorities for the exercise of any of their functions, |
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(c) | any power or duty to recover charges in respect of services provided in |
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the exercise of any local authority functions. |
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(6) | The Secretary of State may issue guidance to NHS bodies and local authorities |
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in relation to consultation or applications for consent in respect of prescribed |
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(7) | The reference in subsection (1) to an improvement in the way in which |
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functions are exercised includes an improvement in the provision to any |
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individuals of any services to which those functions relate. |
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“health-related functions”, in relation to a local authority, means |
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functions of the authority which, in the opinion of the Secretary of |
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(a) | have an effect on the health of any individuals, |
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(b) | have an effect on, or are affected by, any functions of NHS |
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(c) | are connected with any functions of NHS bodies, |
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“NHS body” does not include a Special Health Authority. |
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(9) | Schedule 18 makes provision with respect to the transfer of staff in connection |
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with arrangements made by virtue of this section. |
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76 | Power of local authorities to make payments |
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(1) | A local authority may make payments to a Strategic Health Authority, a |
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Primary Care Trust or a Local Health Board towards expenditure incurred or |
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to be incurred by the body in connection with the performance by it of |
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(2) | A payment under this section may be made in respect of expenditure of a |
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capital or of a revenue nature or in respect of both kinds of expenditure. |
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(3) | The Secretary of State may by directions prescribe conditions relating to |
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payments under this section. |
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(4) | The power under subsection (3) may in particular be exercised so as to require, |
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in such circumstances as may be specified— |
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(a) | repayment of the whole or part of a payment under this section, or |
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(b) | in respect of property acquired with payments under this section, |
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payment of an amount representing the whole or part of an increase in |
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the value of the property which has occurred since its acquisition. |
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(5) | No payment may be made under this section in respect of any expenditure |
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unless the conditions relating to it conform with the conditions prescribed for |
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payments of that description under subsection (3). |
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(a) | a Primary Care Trust or an NHS trust is, or will be, a party to any |
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existing or proposed LA delegation arrangements, and |
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(b) | the Secretary of State considers that designation of the body as a Care |
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Trust would be likely to promote the effective exercise by the body of |
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prescribed health-related functions of a local authority (in accordance |
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