We have published a number of mandatory and best practice guidance documents which set out the assurance required for transactions. These are briefly described below and links are provided to the full documents.
This briefing sheet, published in March 2013, explains the respective roles of Monitor, the Office of Fair Trading and the Competition Commission in relation to mergers involving NHS trusts and NHS foundation trusts.
The Compliance Framework sets out the criteria for transactions that need to be reported to Monitor. Where a transaction is deemed to be significant (as per the criteria set out in the Compliance Framework), Monitor will undertake a full risk evaluation or, in the case of a merger, a new assessment process of the combined business.
Monitor and the Department of Health have jointly published the Transactions Manual, which provides essential information for providers and commissioners on the management and governance of major corporate transactions. An addendum to this manual was published in October 2010 which expands on the due diligence chapter 25 of the manual. It should be read in conjunction with the Transactions Manual.
Monitor's Quality Governance Framework has now been introduced into the risk assessment of transactions. Foundation trusts undertaking transactions should review our requirements in Quality governance assurance in transactions: Monitor's requirements for 2011/12.
Transactions and the self-certification requirement relating to ‘any consultation requirements’: this note provides additional clarification of this self-certification requirement for “material” and “significant” transactions.
Transforming Community Services: Transactions Guidance for NHS Foundation Trusts is largely based on the Compliance Framework and was published in September 2010. It sets out guidance for FTs which are undertaking Transforming Community Services (TCS) transactions.
Lessons learned from Monitor's review of significant Transforming Community Services transactions has been published following our review of 27 transactions between December 2010 and November 2011. The majority of these learnings are relevant to any transaction a foundation trust may be undertaking.
Applying for a Merger involving an NHS Foundation Trust: Guide for Applicants explains how Monitor will assess any merger plan involving one or more NHS foundation trusts. It provides an overview of the merger assessment process and sets out merger assessment guidelines.
Risk Evaluation for Investment Decisions by NHS Foundation Trusts sets out best practice governance processes for all major investments undertaken by NHS foundation trusts. It includes best practice principles in making investment, key elements of investment policy and an overview of Monitor’s role in NHS foundation trust investments. This document will be updated in 2013/14.