DHSC is bringing forward a raft of proposals that will apply to board-level directors and their direct reports within NHS bodies.
Professional standards for NHS England managers will be separately set out to establish a 'consistent, national set of expectations about NHS management and leadership competency and conduct', DHSC said.
Additional laws will set out new statutory powers for the Health and Care Professions Councils to disbar senior NHS leaders who have committed serious misconduct.
The legislation will be put forward to parliament next year, DHSC said.
Health secretary Wes Streeting said: 'We've got to create the conditions where staff are free to come forward and sound the alarm when things go wrong. Protecting the reputation of the NHS should never be put before protecting patient safety.
'Most NHS leaders are doing a fantastic job, but we need to stop the revolving door that allows managers sacked for misconduct or incompetence to be quietly moved to another well-paid role in another part of the NHS.'
DHSC reported that a consultation on its plans received more than 4,900 responses.
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Matthew Taylor, chief executive of the NHS Confederation said: ‘NHS leaders understand the need to reassure the public that they are subject to similar standards of regulation and accountability as clinical colleagues. We asked for a proportionate approach and the government have reflected this in their proposals. The HCPC would provide the necessary independence to assure the public and those who might be investigated.
‘It is important that the new approach is characterised by independence and fairness, and there is the opportunity to learn the lessons of the processes followed by other regulators.'
Caroline Waterfield, director of development and employment at NHS Employers said: ‘At its heart this regulation must support a culture of openness, candour and learning to improve both patient safety and staff experience. There should also be a clear, fair, independent and effective mechanisms in place to follow up concerns regarding adherence to any future Code of Conduct that will be developed as part of this work.
‘We look forward to working with the government as it designs, develops and consults on a new statutory barring scheme and our members are keen to contribute to its development so the way in which it is designed addresses the issues it is attempting to resolve.'
Saffron Cordery, deputy chief executive of NHS Providers, said Saffron Cordery, deputy chief executive, NHS Providers, said: ‘NHS leaders should be held to the highest standards. We agree that only 'fit and proper' people should be running NHS services. We must focus on where regulation can add value while minimising burden and bureaucracy.
‘Many big, complex NHS trusts employ thousands of people therefore we want to attract the very best to lead them. So we welcome the government's commitment to developing and accrediting managers alongside proposals for disbarring those whose performance falls short." "So we welcome the Government's commitment to developing and accrediting managers alongside proposals for disbarring those whose performance falls short.'
