News

Monday 4 April 2011

Large numbers of GPs are quitting general practice, but where does this leave surgery premises?

It’s hardly surprising that with all of the current changes to the NHS and the proposed changes to pensions that GPs across the country are considering leaving general practice. However, of those leaving, many GPs will be partners in a practice and will need to think about what to do with the surgery premises.

As recently reported in Pulse, a study recently undertaken by the NHS Information Centre shows that increased numbers of GPs are leaving the profession. Where the GP has a share in a partnership consideration will need to be made with regards to the practice premises before they leave.

The obvious issue which needs to be addressed is the selling of the surgery premises, or the share in the partnership. A valuation will need to be undertaken of the surgery to ascertain the value of the assets and then arrangements made for the surgery or the share to be purchased, either by the remaining partners or a new incoming Doctor or non-medical partner. To ensure that the Doctor receives an accurate valuation of their investment a market valuation should be undertaken by a specialist Surveyor with experience of valuing GP surgeries.

One idea that could be considered by the practice to address future partnership changes is for the Doctors at the practice to sell the surgery to an investor and the rent it back through a Sale and Leaseback scheme. This will enable the Doctors to release their equity from the surgery and rent it back at a rate usually the same as the rent reimbursement received by the PCT. New incoming Doctors will be able join easily and departing Doctors won’t have the burden of having to sell their share.