Boost GP surgery income


There are many ways a GP practice can make the most of their property to boost GP surgery income.

We understand that General Practice is feeling pressures on finances, services, and personnel. The need to boost GP surgery income requires innovation whilst still delivering high-quality contracted medical services.

Although NHS England is taking measure to support primary care (The General Practice Forward View published in April 2016), it is apparent that many GP premises haven’t seen substantial or sufficient investment.

What strategies should GP practices consider to boost GP surgery income?

1. Check your Notional Rent Reimbursement

Notional Rent is an estimate of Current Market Rent for GP-owned premises. The Notional Rent is provided by the NHS after valuation advice, usually from the District Valuer.

It is essential to remember that the figure notified is essentially one person’s opinion of the appropriate fair and reasonable Current Market Rent.

GP Contractors using a suitably qualified and experienced Chartered Surveyor are therefore entitled to question, challenge and negotiate the Notional Rent Reimbursement. The challenge must be supported by facts and comparable evidence of rentals prevailing on other primary care medical properties. This evidence is not widely available in the public domain.

The capital value of GP premises is also usually linked to the rental income stream, whether real or notional (RICS Best Practice). A higher notional rent will enhance the sale price of a doctor’s premises at partnership change, retirement and sale (assuming ongoing use as a Primary Care facility).

See more information on our Notional Rent service.

2. Does your GP premises have space for a pharmacy?

Implanting a pharmacy in your building can generate substantial valuable additional income.

Implantation deals can be structured in different ways. Having appropriate specialist advice will ensure the deal represents Market Value irrespective of how it is structured.

Incentives will generally be taxable and result in a reduction in Rent. This reduction in rent will impact upon the Capital Value.

See more information on Pharmacy Implants.

3. Can you generate more rent from an existing tenant?

If you have an existing pharmacy, NHS body or another private occupier under a lease, then it may be possible to generate extra income. Reviewing the arrangement with the tenant and creating, reviewing or renewing a lease can make this possible.

Any occupation in excess of or intended to be in excess of three years should be in writing (usually a lease).

See more information on reviewing or renewing a lease.

4. Is it worth introducing new service providers if you have space?

Introducing complementary service providers into your building is not as lucrative as you may think, due to changes within the Premises Cost Directions 2013.

The Directions allow NHS England to equitably offset income generated against the Current Market Rent if the service is conducted from space that attracts reimbursement.

Essentially, complementary services should be implanted in space that does not qualify or attract NHS England rental reimbursement wherever possible.

Specialist advice is therefore recommended if you are considering any non-contracted medical service venture.