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What are the financial opportunities to GPs of working in consortia? And can consortia borrow?


1 March 2011

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Q: What are the financial opportunities to GPs of working in consortia? And can consortia borrow?

A: GP consortia will be statutory bodies so will not be able to make a profit out of the commissioning budgets devolved to them. GP consortia will have an accountable officer and will be held to account for the stewardship of NHS resources and the outcomes they achieve as commissioners.

Q: What are the financial opportunities to GPs of working in consortia? And can consortia borrow?

A: GP consortia will be statutory bodies so will not be able to make a profit out of the commissioning budgets devolved to them. GP consortia will have an accountable officer and will be held to account for the stewardship of NHS resources and the outcomes they achieve as commissioners.

The consortia will receive a management allowance for costs associated with commissioning and GPs working for the consortium can be paid for their services at the market rate from this allowance.

As the government's intention is to reduce NHS management costs by over 45% over four years, this will put fairly tight constraints on management costs. GPs involved in provider organisations will be able to bid to provide services along with any other willing provider and the consortium will award the contract according to price and anticipated outcomes.

With regards borrowing, GP consortia are likely to be under the same constraints as PCTs are at present and would therefore not be able to borrow from conventional borrowing sources.

There will need to be brokerage arrangements in place at the year end to balance the books as it is improbable that expenditure would exactly match the funding in the year but details are not currently available.

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