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
NHS foundation trusts have reported a £349m deficit taking trusts in England overall to £822m million in the red, according to a report.
Police are attempting to find a vulnerable missing 16-year-old girl who is feared to be with a 51-year-old man.
A "selfish and wicked" mother has been jailed after filling in false paperwork to stop her ex-husband from attending their son's cremation.