Magazine article Public Finance

Rules Due out Soon on Failing Foundations

Magazine article Public Finance

Rules Due out Soon on Failing Foundations

Article excerpt

New rules on the treatment of failing and insolvent foundation hospital trusts will be published soon, the trusts' regulators said this week.

As well as giving foundations financial freedoms, the Department of Health has made it clear they will be allowed to fail. But without the safety net of guarantees from the department, commercial lenders' rates are high, and to date no trust has borrowed from a commercial source.

Monitor said detailed work was needed to ensure creditors' interests were adequately protected. 'This would encourage commercial organisations to lend to foundation trusts on acceptable terms in the absence of financial guarantees,' it added.

The announcement came in Monitor's annual report and accounts for 2004/05, its first full year of operation. The regulator also said it was piloting a programme to analyse trusts' preparedness for foundation status. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.