Dr Peter Carter, chief executive and general secretary of the Royal College of Nursing, said: "For some time we have been concerned about the ability of providers to deliver high quality care and run on a sound financial footing."
He welcomed the push for "robust plans" to be put in place, saying:
When a patient or service user is moved from one care setting to another due to providers failing, it can have catastrophic effects on their mental and physical health. The RCN raised these concerns throughout the passage of the Health and Social Care Act and today's news is a welcome step forward.
It is right that robust plans are put in place to minimise the risk of services failing and that there is scrutiny of their business models. We look forward to seeing these plans in more detail and in particular how they fit in with the Care Quality Commission and Monitor.
More top news
Ten people have died on the mountain so far this climbing season - four more than mountaineering officials expect in a typical year.
“We can use peace”, the US President told the pontiff in their first face-to-face meeting on Wednesday.
A man with a knife has been arrested near Buckingham Palace in an incident Scotland Yard said was not believed to be terror related.