Monitor drops debt cap in NHS Provider Licence

Monitor, the NHS regulator, has published its hotly-debated NHS Provider Licence Agreement and, in a move that must be a relief to the private sector, has dropped plans to introduce a debt cap or restrict the levels of borrowing and lending providers can take on. However the agreement does call for providers of Commissioner Requested Services (CRS) to contribute to a funding pool to be used as insurance if a provider does fail. The workings of this risk pool are set to be subject to a separate consultation. This makes up part of the continuity of service conditions which have been outlined to protect services which must continue even if the provider has financial problems. Stephen Collier, chief executive of BMI Healthcare said: We broadly welcome Monitor’s response to the consultation on the new licence regime, which will lead to further convergence in the way independent sector providers and NHS trusts will be regulated when providing publicly-funded healthcare services.’