- 5 updates
Care home operators will be forced to prove they are financially viable under new plans revealed today.
The Care Quality Commission is to be given new powers carry out financial checks in order to avoid a repeat of the collapse of Southern Cross -Britain's biggest care homes operator - two years ago.
ITV News' Tom Barton reports.
Recent research suggests that the number of care homes going bust climbed by 12% last year.
Data from accountancy firm Wilkins Kennedy said that the number of care home insolvencies rose from 60 in 2011 to 67 in 2012.
The Care and Support Minister Norman Lamb has said that the Care Quality Commission (CQC) will implement a "tough series of checks" on the largest care companies - including those that provide care in people's own homes.
The move will give "early warnings" if a company is in trouble, he said.
The CQC will have power to require regular financial and relevant performance information from the 50 to 60 largest companies, and providers will also be forced to submit "sustainability plans".
And if a company is in trouble the CQC will have power to commission an independent business review to help the provider to return to financial stability.
Care home owners will be forced to prove they are financially stable to avoid a second Southern Cross-style collapse, officials have said.
The Government is to implement a series of safeguards to prevent a repeat of the crisis.
Care and Support Minister Norman Lamb announced that the Care Quality Commission (CQC) will be able to monitor the financial health of the largest providers.
The abrupt collapse of Southern Cross, Britain's biggest care homes operator, caused turmoil for more than 30,000 elderly and vulnerable people in 2011.