A tribunal will be set up to adjudicate when a provider wants to remove a “designated service” status granted by Monitor.

The status would see the regulator step in to ensure continuity of service if a provider went bust.

Commissioning consortia, the NHS Commissioning Board or the health secretary can apply for the status for a service.

The Health Bill says the criteria for designation “is that ceasing to provide the service concerned for the purposes of the NHS would, in the absence of alternative arrangements for the provision of the service for those purposes, be likely to have a significant adverse impact on the health of persons in need of the service, or cause a failure to prevent or ameliorate a significant adverse impact on the health of such persons.”

Commissioners must also consider: “The current and future need for the provision of the service for the purposes of the NHS.”

If a provider believes they have been unduly designated it will be able to appeal to the tribunal, run by the Tribunals Service.

Commissioners will be expected to pay more for designated services while providers will be asked to pay “a levy” into a Monitor “risk pool” that will ensure services keep running.