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
Two police officers face a gross misconduct hearing after stopping at McDonald's before attending an emergency call for a suicidal woman.
International Development Secretary, Priti Patel, urged the rest of the world to 'act now' to help millions of people at risk of starvation.
Nail-biting footage of two thrill seekers climbing to the top of One Canada Square in London's Canary Wharf has emerged online.