Today's measures are a response to several recent scandals in both care homes and hospitals.
They include the case of Winterbourne View care home in Bristol where patients with learning difficulties were abused and neglected by staff.
Footage captured by an undercover BBC reporter showing patients being slapped, dragged on the floor and doused in cold water eventually led to 11 staff pleading guilty to 38 charges.
Stafford Hospital was also the subject of a damning report by Robert Francis QC which concluded that patients were routinely neglected by staff.
It detailed how patients were left unfed and unwashed, some of them in soiled sheets.
Care and support minister Norman Lamn has said it is "striking" that there have been no prosecutions of healthcare providers or directors resulting from a string of scandals.
He said the measures announced today were designed to bring an end to that.
The government will today announce measures that aim to restore confidence in the care system after a series of scandals, including Winterbourne View and Mid-Staffs.
The measures include:
- A compulsory 'fit and proper person' test for hospital and care home directors. If they fail the test, they will be removed from their post.
- Addressing a loophole in the system where providers responsible for appalling failures in care can escape prosecution.
- Allowing the Care Quality Commission to prosecute providers and their directors without giving prior notice.
Directors in charge of care homes and hospitals will be held personally accountable for any abuse or neglect under new measures being unveiled today.
Care and Support Minister Norman Lamb will say that the changes are designed to prevent a repeat of cases like Winterbourne View, where an undercover reporter revealed shocking abuse at a Bristol care home.
The new standards will require directors to take a "fit and proper" test to ensure they fit the role, and make it easier for the health watchdog to prosecute them where there are clear failures to meet basic standards of care.
The measures will apply to any care provider that is registered under the Care Quality Commission.
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.
People are concerned about the quality of care their elderly relatives receive, according to new research.
An analysis of a survey completed by 2,000 people has found that almost a quarter of participants (23%) rated homecare agencies as having sub-standard care, with care homes close behind at 15%.
The biggest concern for more than 84% of people choosing a care home was cost and quality of care or specialist care.
In contrast, the quality of care children receive was rated highly, despite being expensive, with 90% of those who wrote on the site about childcare leaving positive reviews.
But childcare providers were rated low for value for money and 8% of childcare reviews were negative specifically about the value of money.