Notional Rent is a method of reimbursement for GPs who own their own GP surgery premises and use it for approved NHS purposes.
The Premises Costs Directions 2013 explain what things should be taken into account when considering a GP practice’s Notional Rent and how this should be calculated.
The Premises Costs Directions 2013 can be downloaded HERE.
GP practices on a Notional Rent are provided with a new Notional Rent figure by NHS England every three years.
How is Notional Rent Calculated?
Notional Rent is worked out by establishing the Current Market Rent (CMR) of the premises and apportioning this to the area of the property that is used for GMS or PMS purposes.
There are many things that will have an effect on CMR including: the agreed CMR of similar surgery premises, how many square feet the property occupies, its state of repair and the makeup of the local area.
Notional Rent reimbursement is primarily calculated by the ‘District Valuer’ who represents NHS England.
Challenging Notional Rent
The initial Notional Rent figure that GP surgeries are sent by NHS England (via the District Valuer) is purely an opinion of GP surgery value.
As with all opinions, they can sometimes differ. This is why GP practices should always seek a second opinion from a specialist surveyor. If these two opinions are the same, the practice can rest assured that they are receiving the correct Notional Rent reimbursement. If the figures are different, they can ask their surveyor and NHS England to negotiate in order to come to a final agreed figure which best represents the value of the doctors’ surgery.
Reimbursement for Practices in Leased Premises
Pre-April 2013, if a premises was leased, the reimbursement would normally cover the Actual Rent that the GP partners paid to their landlord. The new Premises Costs Directions which were released in April 2013 have now removed this reassurance which means that there is now a risk that surgeries could be left with a financial loss. For more details about this, please click here.
Please click here for more information about Notional Rent.
If you would like advice on your Notional Rent reimbursement, please call us on 0114 281 5850 or email email@example.com