An investigation by the Competition and Markets Authority has led to a UK care home provider dropping its policy of charging fees after a resident has died.
The decision by the Maria Mallaband Care Group means that they will stop using a contract term requiring the payment of one month’s fees following the death of a resident who funded their own care.
Welcomed by the CMA, the change follows an ongoing consumer law investigation by the regulator into the fees charged by certain care home providers. Having made its concerns clear, the CMA state its unfair to continue to charge fees for an extended period after a resident has died.
Maria Mallaband operates 64 residential care homes in England and Northern Ireland, together with its sister company, Countrywide Care. Responding to the CMA’s intervention, the group has agreed to amend its contract terms at its current and any care homes it operates in future.
Having found that charging fees post death was widespread across the sector, the CMA aims to streamline existing practices and ensure that care homes take a consistent and lawful approach. Planning to publish guidance for the sector as a whole, the regulator has today launched a public consultation seeking feedback on its draft advice.
Commenting on the Care Group’s response to concerns was Michael Grenfell. The Executive Director for Enforcement at the CMA stated: “It is important that care home residents, and their families, can be confident they will be fairly treated, especially during the difficult period after a family member has died.
“We are pleased that the Maria Mallaband Care Group has been responsive to our concerns about fees charged after death, and has taken clear and positive steps to make changes ahead of our public consultation on such fees. We expect other care homes to make any necessary changes in line with our final views when published.
“We now want to hear from families and care homes as part of our consultation.”
Closing on the 16 February, the consultation can be accessed here.
