Proposed GP Contract 2025 To 2026
In rare, good news for the General Practice sector, prior to Christmas, the Government announced GP reforms to cut red tape, backed by a funding boost of £889 million. The measures include reducing performance targets to allow GPs more time with patients and bring back the family doctor by incentivising GPs to ensure patients most in need see the same doctor at every appointment. The proposals fall under the new GP contract for 2025 to 2026, which is now out for consultation with the British Medical Association (BMA) and will be unveiled in the spring.
Surgery Squeeze
According to a recent major survey on practice premises from the BMA, only half of the surveyed practices consider their premises to be fit for present needs, with 80% saying their premises were not fit to meet projected future needs. Over half highlighted their need for more space, driven by growing list sizes and the demand for expanded GP services and the additional staff to deliver these services under the rollout of Primary Care Networks (PCNs). Acknowledging this pressure, the Government, through its budget changes, is investing an extra £100 million to upgrade GP estates across England.
Funding Options
For owner-occupied surgeries there are two options available to fund premises improvement works, NHS-funded and self-funded, or a combination of the two. However, when undertaking any improvement works, in order for the works to qualify for NHS rent reimbursement, written approval from the NHS must be obtained.
NHS Funded Works
With the introduction of the new NHS (General Medical Services – Premises Costs) Directions 2024, Integrated Care Boards (ICBs) are now able to award GP improvement grants of up to 100% of the project value, an increase from the previous limit of 66% in the 2013 Cost Directions. Furthermore, grants have been expanded to include the acquisition of land for premise extensions and tenant fitouts of new builds, and grant amounts have been increased. NHS funding towards the cost of building or refurbishment work continue to result in the surgery’s notional rent being subject to an abatement, assessed proportionally to the percentage of funding the NHS have contributed toward the works, however, these abatement periods have generally been shortened.
The new abatement regime is detailed as follows:
Value Abatement
Up to £144k 6 years
£144k – £360k 9 years
£360k – £660k 12 years
£660k – £1.2m 15 years
Over £1.2m 18 years
Specialist Assistance from Vickery Homan
If a practice is considering improvements to their surgery, has recently received their Notional Rent assessment letter, or are about to undertake a leased rent review, it is highly advisable to seek specialist valuer input, which the Healthcare team here at Vickery Holman would be happy to provide.
