30th June 2016

GP Funding Highlights

The 2016/17 General Medical Service contract agreement has new funding changes, which will highlight to new developments in General Practice in near future. NHS England will apply the equitable funding changes to Personal Medical Services (PMS) and Alternative Provider Medical Services (APMS) contracts.

The new GP contract has an investment of £220m, more than last year’s investments and seven times that added in 2014/15. The recent commitments and developments along with seniority payments and correction factors termination illustrated significant changes in GP funding. The funds are contributed to the following aspects:

  • National Insurance contributions: £57 million
  • 1% pay uplift: £57 million
  • Indemnity: £33 million
  • Increase to vaccination and immunisation item of service fee from £7.64 to £9.80 (28% uplift): £30 million
  • Care Quality Commission fees: £15 million
  • Superannuation: £14 million
  • Increased Quality and Outcomes Framework (QOF) point value (Contractor Population Index adjustment): £13 million

Dementia- enhanced service £42m worth funds are added to Global Sum with no Out-Of Hours (OOH) deduction. The OOH deduction for 2016/17 is 5.15% applicable to only 1% pay uplift a £58m. The net effect of the changes:

  • Global sum payment per patient increases from £76.513 to £80.59.
  • OOH deduction changes from 5.39% in 2015/16 to 5.15% in 2016/17.

Seniority payments and corrections factor recycle

The seniority payments and Minimum Practice Income Guarantee (MPIG) – correction factors are eliminated, its funding will be used for Global Sum. As a result of annual contract negotiations, the global sum increase every year before any other uplifts because of these two factors.

The uplift in relation to MPIG correction factor is assumed to be £50 per weighted patient per year and in relation to seniority £34 per weighted patient per year. These are conditional as the future years may have additional changes like core investment to cover expenses or general practice development.

PMS reviews            

PMS reviews are on going across the country. The Clinical Commissioning Groups practices will spend the PMS premium funds as agreed in the new changed contract between the GPC and NHS England. For more guidance Focus on PMS reviews.

HSCIC figures on GP funding

The latest reports on the payments to GP practices in England by the Health and Social Care Information Centre (HSCIC) for 2015/16.

  • All providers: £7,990.3 million spent across 7,959 providers; £141 per registered patient
  • General Medical Service: £4,186.9 million across 4,480 providers; £137.05 per registered patient
  • Personal Medical Service: £3,590.6 million across 3,190 providers; £143.84 per registered patient
  • Alternative Provider Medical Service: £212.8 million across 289 providers; £189.74 per registered patient

Future developments

The GPC and NHS England are reviewing the Carr-Hill funding formula, which will review the funding arrangements for practices serving atypical populations. The outcome is expected by the autumn 2016, and intended to implement by April 2017.

The GP Forward View provides details of the £2.4bn investments in General Practice per year by 2021. Read more on General Practice Forward View.

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