02.12.15
GPs warned of potential cuts to rent payments
GP practices have been advised to set aside some of the “notional rent” they receive in case their reimbursement is cut following the review of the Premises Costs Directions by NHS England.
Practices that are located in high-value office districts, residential areas or retail parades, whose rent reimbursement has been calculated on an ‘alternative use’ basis, could potentially face a decrease in their notional rent, according to GP Surveyors.
The organisation, which is the UK’s leading firm of Chartered Surveyors specialising in GP practices, stated that the latest Premises Costs Directions, which were released in 2013, prevent ‘alternative use’ valuations being used when valuing GP surgeries.
Therefore, surgeries who have previously been valued on this basis could potentially face a decrease in their “notional rent” received from NHS England.
It was noted that a surgery in the north east recently received an email from NHS England stating that, because their reimbursement had previously been calculated on an ‘alternative use’ basis, their new review would be put on hold until internal talks regarding the ‘alternative use’ issue have reached a conclusion.
Currently, NHS England is in talks with the British Medical Association on its plans for the new cost directions.
Paul Conlan, operations director at GP Surveyors, said: “We have a number of ongoing cases where reimbursement has been reduced considerably by the District Valuer.
“These cases are now on hold while we await the new Directions. Moreover, there are other practices, such as the one in the north east, who are being told that their reviews have been postponed completely until NHS England decide whether to allow ‘alternative use’ valuations in the revised Directions – which are yet to be released.”
He added that the concern is the revised Directions, which have been promised for some time, have yet to materialise.
“The longer these surgeries have to wait for a conclusion to the matter, the more money NHS England will potentially clawback from them (if they decide to keep the clause preventing ‘alternative use’ valuations),” said Conlan. “This is why we are advising these surgeries to set aside some of their reimbursement over the coming months to help soften the blow should the worst occur.”