CMA’s interim report says some care homes may be breaking consumer law

Posted on June 15th, by geoff in Caring Times. Comments Off on CMA’s interim report says some care homes may be breaking consumer law

The Competition and Markets Authority (CMA) has published the initial findings of its care homes market study, and is investigating if some homes are breaking consumer law.

Launched in December last year, the market study has examined whether the residential care homes sector is working well for elderly people and their families. Having reached the halfway point of the study, the CMA has published emerging findings and announced that, as a result of information received during this work, it has opened a consumer protection case to investigate its concerns that some care homes may be breaking consumer law. This is focused on concerns about certain care homes charging families for extended periods after a resident has died, and homes charging large upfront fees.

The initial findings of the study highlight wider concerns about the sector, which will form the focus of the next phase of the CMA’s work. These include:

  • Many people find it difficult to get the information they need, are confused by the social care system and funding options, and do not know how to find and choose between homes.
  • Complaints procedures are not functioning well. The CMA says it is not realistic for many residents to move home if they are dissatisfied with the care they are receiving, as to do so would be distressing and harmful to their health.
  • “It is therefore essential that effective systems are in place for them to be able to complain and, where necessary, have these concerns acted upon,” says the interim report.
  • “Our initial findings, however, indicate that redress systems often do not work well, and residents can find it very challenging to make complaints.”
  • While many care homes offer a good service, the CMA is concerned that some might not be treating residents fairly and that certain practices and contract terms might break consumer law:
  • “As well as the issues on large upfront fees and fees charged after death, which we are investigating in the consumer protection case, we are concerned about other consumer protection issues such as a lack of information about prices on care home websites, and care homes’ contracts giving homes wide-ranging discretion to ask residents to leave, at short notice.”
  • The CMA says the sector is not positioned to attract the investment necessary to build greater capacity needed for the future and that short-term public funding pressures and uncertainty mean the sector is not incentivised to undertake the investment necessary to meet future demand.

CMA acting chief executive Andrea Coscelli said it was essential that elderly and other vulnerable people were able to make informed choices, understand how services will be paid for, and be confident they will be fairly treated and able to complain effectively if they have any concerns.

“We also have particular concerns that some care homes might be breaking consumer law and we have opened a consumer protection case to investigate further,” said Ms Coscelli.

“Demand for care home places is expected to surge over the next 2 decades. To make sure the additional capacity this requires is available, it needs to be built in good time. At present, short term funding pressures and uncertainty mean that the sector is not attracting investment. We will be focusing on finding ways to deal with these, and other concerns identified.”

The CMA is developing recommendations to protect residents and their families, which will be expanded over the next half of the market study. These include examining how:

  • People can be actively supported in making choices;
  • Complaints and redress systems can be significantly improved to help people feel more comfortable reporting concerns;
  • Residents and their families can best be protected, and how to encourage fair treatment by care homes;
  • Local authorities can be encouraged to share best practice in procuring care home services and planning, and developing provision in their areas;
  • To encourage investment for the future.

The next phase of the CMA’s study will focus on developing and refining these recommendations to ensure they are robust and practicable, and can help make real improvements to the way the sector works. CMA will be seeking views from national and local government, as well as regulators and the industry in each country of the United Kingdom, to ensure these recommendations can be effectively implemented.

The CMA says it will continue to look at the consumer protection issues identified during the first half of the market study and will consider how best to address these, including by extending the scope of its consumer protection case.

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