Beauchamp House Surgery received reimbursement increases, above the PCT’s initial valuation, of 28% and 22.7% for consecutive Notional Rent reviews.
Beauchamp House Surgery in Essex approached GP Surveyors to provide a second opinion on their Notional Rent reimbursement in both 2008 and 2011, after they received valuations from the PCT that they believed were too low.
James Williams, the surveyor assigned to the case, inspected the surgery in 2008 and agreed that the valuation should have been higher due to a number of reasons including:
1) Inaccurate floor areas:
The District Valuer (DV) had used inaccurate floor areas that had been adopted in previous unchallenged valuations.
2) Low unit rate:
GP Surveyors felt that a higher unit rate would more appropriately reflect the central location of the surgery and the large 1970s Purpose Built extension to the rear.
3) Low value placed on car parking spaces:
GP Surveyors proposed that a greater value be attached to the surgery’s car parking spaces due to its central position.
Following successful negotiations with the DV, GP Surveyors agreed an increase of 28%, above the PCT’s initial valuation.
Three years later, a different DV was appointed to carry out the surgery’s next Notional Rent review. His opinion of the surgery’s value was much lower than expected.
The surgery attempted to discuss the matter with the DV however he felt entirely justified and correct in his decision.
GP Surveyors were instructed yet again and negotiated an increase of 22.7% above the PCT’s initial valuation.
Dr Simon P. Schultz, Partner at Beauchamp House Surgery, said:
“We were frustrated by a PCT that wished to reduce our Notional Rent and a DV who refused to negotiate with us.
“Following GP Surveyors’ negotiations, we secured a Notional Rent increase of 22.7% above what was being proposed by the PCT! The increase in funding is particularly important to us at a time when financial pressures on primary care are so great. With the extra funding received, not only have we prevented a substantial drop in practice income but now can also afford to refurbish, repair and decorate our building!
“From our experience, all medical practices should seek a second opinion on their Notional Rent to ensure that they aren’t missing out. There is absolutely no cost to ask GP surveyors for advice, we have used them twice with excellent results on both occasions.”
James Williams echoes this: “This case is a great example of why GPs should seek a second opinion from a Chartered Surveyor during every triennial Notional Rent review.”