16/06/2017
Concerns that some care homes might be breaking consumer law and treating residents unfairly, and plans to investigate the causes of these concerns, dominate the interim report on the market study of the residential care home sector that the Competition and Markets Authority commenced in December 2016*.
‘Care Homes Market Study: Update Paper’ reveals that information uncovered in the first half of the study has resulted in CMA opening a consumer protection case to investigate concerns that certain care homes may be
- charging families for extended periods after a resident dies
- charging large upfront fees
The paper also identifies wider concerns that will be the focus of the next phase of the study, including
- many prospective care home residents and their families find it difficult to get the information they need to make informed choices when choosing a home
- complaints procedures are not working well, with redress systems inadequate and residents finding it very challenging to make complaints
- lack of information about prices on care home websites and contracts that give homes wide-ranging discretion to ask residents to leave at short notice
- the sector is not positioned to attract the investment necessary to build greater capacity needed for the future
In addition to initial recommendations directly related to these concerns, the paper recommends an investigation into how local authorities can be encouraged to share best practice in procuring care home services.
Section 10 of the paper invites written responses by 5 July to a set of specific questions on key issues and recommendations.
* CMA was called on to investigate the care home market by Citizens Advice, after research published by the national charity in the February 2016 report ‘Hidden charges in care homes’ found people were getting shock bills, having as little as a week’s notice about fees going up, and paying deposits that they were offered no protection for.