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GPs are independent contractors remunerated for
the provision of NHS services via a complex system of fees and allowances
and direct refunds. The new contract introduced in 1990 altered the
terms of service for GPs as well as the balance of the remuneration
structure. The 1990s saw many changes in the NHS, including the creation
of an internal market for healthcare and the introduction of GP fundholding.
Further NHS reforms are underway, building on the concept of local
commissioning but abolishing GP fundholding. The late 1990s witnessed
the emergence of private GP surgeries in locations such as railway
stations or shopping complexes, the establishment of walk-in NHS medical
centres and the nurse-run 24-hour telephone helpline, NHS direct.
July 2000 saw the publication of the Government's NHS Plan which set
out measures for the radical reform of the NHS, some of which had
been announced previously and some of which were new. The Plan sets
out ambitious targets for improving the health of the nation and delivering
health care and promises more NHS staff to make this possible. During
the opening years of the 2000s a package of measures was introduced
aimed at improving morale in the profession, reducing the workload
and addressing the problems of GP recruitment and retention. In October
2001 negotiations on a new GP contract began.
The Doctors' and Dentists' Review Body recommends each year an amount
that the average GP should earn (the Intended Net Average Remuneration).
To this is added an amount to cover indirectly reimbursed practice
expenses. The fee scale is structured to deliver these two elements
through allowances, capitation payments, item of service fees and
so forth. If GPs as a whole earn more than intended in any year, this
'overpayment' is deducted from the pay award in subsequent years.
Following the introduction of the new contract in 1990/91, many GPs
earned considerably more than had been intended. The 'balancing mechanism'
was suspended in 2001/02 and 2002/03.
The number of unrestricted principals working in the NHS has gradually
increased over the last decade and there has also been a move away
from the single handed practice towards larger partnerships.
GPs' workload is likely to remain heavy in the future as a result
of the continuing trend for services previously provided at secondary
level to be shifted to the primary care sector. The latest NHS reforms
may also increase administrative and management burdens.
Only general medical practitioners registered with the GMC may work
in the NHS. Before practising as a GP, a doctor must complete a three
year vocational training period. Once qualified, GPs might start up
on their own or join an existing practice. Suitable practice premises
must be provided - in many cases these will be owned by the GP/s.
Patients are seen at the practice premises and home visits will also
be undertaken. The average number of patients registered per practitioner
has fallen over the years to a current average of around 1,800 (England).
Scotland has the smallest patient lists. As well as providing general
medical services to their patients, GPs may also undertake other NHS
work as well as non-NHS work.
A number of factors may affect the amount received each year in fees
and allowances, chief among these in many cases being the failure
to maximise item of service fees or to claim everything to which the
practice is entitled.
The NHS fees and allowances due to the GP are paid by local Health
Authorities/Boards, monthly, quarterly and as claimed. Fees for some
non-NHS activities, such the completion of certificates, may be paid
in cash and care should be taken to ensure that these are fully recorded.
The financial performance of the individual GP may be reviewed against
the Intended Average Net Remuneration recommended annually by the
Review Body and delivered through the fee scale.
However, net income actually received by the GP may vary considerably
from the average for a number of reasons, including practice size
and patient profile, the range of services provided and the efficiency
with which fees and allowances due to the practice are claimed.
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| Reproduced from CCH
Business Focus with the kind permission of CCH Information.
For more information on CCH Business Focus please go to
www.cch.co.uk
or telephone CCH Customer Services on: 0870 241
5719. |
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