The CQC consulted on options for the fees it will charge to providers in 2016/17 and beyond. The CQC asked for feedback in particular on whether it should move to a position of full chargeable cost recovery through fees over two or four years.

The key points in our response are:

•         CQC is required by the government to move to full recovery of its chargeable costs through fees within a defined period, which the DH has advised is a maximum of four years. However, in the current financial context our members find the proposed increases unrealistic, unreasonable and unacceptable.
•         We welcome CQC’s engagement with providers as it develops its five year strategy for 2016-21. Our response to the strategy options document is available here. The development of a new five year strategy offers opportunities for CQC to make efficiencies and to streamline its inspection model, such as the option under consideration to move to a more tailored and responsive inspection model.
•         It is therefore disappointing that CQC is proposing to make decisions about its strategic direction for fees while this work is still at such an early stage and it will be imperative that CQC continues to evaluate its value for money and sustainability, and seeks to make efficiencies and streamline its approach.
•         Our strong preference is therefore for CQC to freeze its trajectory to full cost recovery until the Department of Health has concluded its consultation on CQC’s fee raising power and has fully considered, in collaboration with the sector, whether it is appropriate to move to full cost recovery.
•         In addition, CQC should work with its national partners to explore how any future increases to its fees might be taken into account through the national payment systems. For example, through the national tariff.

Separately, the Department of Health is consulting on bringing the CQC’s comprehensive inspection model within the scope of its fee raising power. The CQC is currently only able to charge fees for those elements of its model which relate to registration against minimum standards. This excludes looking at the quality of care above and beyond the level required for registration, including awarding ratings. The consultation proposes to extend the regulator’s fee raising powers to cover the full comprehensive inspection regime. NHS Providers will be responding and you can contribute to our response by contacting Martha Everett.