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Care homes briefing 177 – Competition and Markets Authority

The Competition and Markets Authority (CMA) has now produced its final report on the care homes market. The full report provides interesting reading and can be accessed by clicking here.

The CMA identifies various common themes in relation to the contractual basis for residents’ placement at care homes.

A checklist of these issues is attached which care home operators may find helpful to use to measure their own contracts against. If you need advice on this, we can assist.

The CMA has also suggested that a model agreement should be produced and that may assist in the formulation of future contracts. The extent to which it is commercially acceptable does, of course, remain to be seen.

Summary of CMA issues

  1. Lack of indicative prices on websites
  2. Resident deposits
  3. Other substantial upfront payment
  4. Not providing contract terms to residents in a clear and timely way
  5. Guarantee of fees
  6. Fee increases
  7. Effect of NHS funded nursing care
  8. Termination clauses
  9. Fees charged after death
  10. Third party top up arrangements
  11. Effect of NHS continuing health care funding
  12. Complaints
  13. Protecting resident’s deposits
  14. Notifying CQC when asking a resident to leave or impose a visitor ban
  15. Third party top up fees for local authority funded residents
  16. Top up payment for NHS CHC residents
  17. Improving awareness of access to the Ombudsman

If you would like any further information, please contact:

Andrew Parsons
Partner, Head of Healthcare – Providers
T. 020 7227 7282


This briefing is for guidance purposes only. RadcliffesLeBrasseur LLP accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.

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