Managing the financial implications of the new contracts will be crucial if they are to be successfully implemented and used to their full in the modernisation of primary care. Support has included local and national events and publications such as the Finance Friend incorporating primary care issues.
20/10/08: Financial implications of changes to GMS contracts
Last week the General Practitioners' Committee (GPC) and NHS Employers announced a formula for calculating GP funding in the 2009/10 financial year. The changes it contains have profound implications for GP funding and by extension for PCTs. Read more details here.
Amendments to the SFE - Dispensing
The DH, with the agreement of the GPC, has amended the SFE to restore the calculation to that set out in the Red Book. The Signed Directions which amend the SFE is available here. PCTs should continue to pay in accordance with the notifications they receive from the Prescriptions Pricing Authority.
The DH has a comprehensive page with links entitled 'NHS allocations'. Please note ID and password are required for some documents. There is also a GMS statement on SFE.
Interim Seniority Payments for 2005/06
The estimated Average Superannuable Income Figure for 2005/06 is £80,940.
This figure excludes an estimated average seniority payment for 2005/06. Similarly, PCTs will need to subtract a GP's estimated 2005/06 seniority payment from their estimated superannuable income for the same year before calculating their seniority figure.
To calculate a GP's superannuable income figure:
Earnings in 2005/06 - estimated seniority payment in 2005/06 = superannuable income figure.
If the GP provider has a superannuable income of between one and two thirds of the Average Superannuable Income figure, which is £80,940, only 60% of the full annual amount payable in respect of a GP provider with his Reckonable Service is payable under the SFE in respect of him. If he has a superannuable income of less than one third of this of this figure, no Seniority Payment is payable under the SFE.
Global sum - clarification
Practices have raised queries with PCTs over the make up the new global sum figure of £54.72 which is in effect from April. To assist PCTs in addressing such queries the new global sum figure consists of:
(1) £54.00, representing pure global sum; plus,
(2) £0.26, which is a contribution to contractors appraisee costs (previously paid as the 'appraisal premium' in 2004/05); plus,
(3) £0.46, the contribution negotiated with the GPC to cover the increase in superannuation contributions from 7% to 14% for the new income arising from the primary medical contract (again, previously paid as a 'superannuation premium' in 2004/05 though an increase over that amount).
SFE Amendments
Since the issue of the Statement of Financial Entitlements (SFE) at the end of March two important issues have been raised with the Department where the SFE text fails to match the reality of the calculations being produced by supporting IM&T systems.
These relate to the calculation of aspiration payments under the 60% methodology and the timing of childhood immunisation target payments.
The SFE has therefore been amended by Secretary of State Directions. The Statement of Financial Entitlements (Amendment) Directions 2005 were signed on 8th June and came into force on 1st April 2005.
The SFE which is the most up to date must be accessed through the link below. Download the GMS Statement of Financial Entitlements (Post-amendment) CURRENT from the website. It is recommended that this is the document to consult for information on payments from 1st April 2005 onwards. The amended SFE, the Directions and an explanatory note can be downloaded from the web page.
Links to support & resources
Project plan template for Direct Enhanced Services
Four Practice Project plan templates for Direct Enhanced Services are available. See the Medical page and scroll down.
Funding stream presentations - presentations from the four one-day workshops held in February 2004 to explain funding streams for nGMS/PMS allocations and how PCTs should manage these.