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.
More top news
Widespread frost for most areas as temperatures dip below freezing.
Premier League clubs have agreed to pay all full-time staff the living wageof £9.15 an hour in London or £7.85 an hour outside the capital.
Tamworth represents what's going on at the national level, a remarkable boom in jobs but wages only just beginning to overtake inflation.