The GP Contract for 2025/26 introduces significant changes, including increased funding, streamlined procedures, the end of national collective action and expected improvements in primary care for both patients and staff. In this article, GP Surveyors explore how the GP contract might impact property in the primary care sector.
Primary Care Networks (PCNs) are central to the new contract, with key clauses and funding structures supporting the model. Dr Amanda Doyle (National Director for Primary Care and Community Services) even concludes her statement by saying “I hope the changes to the contract in 2025/26 will be seen as positive for practices, PCNs and for patients.” This backing should give PCNs the confidence to make further strategic decisions regarding their structure, but it does not eliminate all uncertainty and risk. We foresee that PCNs operating under flat or lead practice models will see further practices adopt mergers as a risk reduction strategy.
Since the establishment of PCNs, GP Surveyors have observed numerous practice mergers. The need for primary care to provide a more diverse range of services has driven up patients’ desire to register for larger practices that provide these services. These larger practices need more space to deliver these services, and the specialisms of GPs from smaller practices to deliver them. Coupled with growing partnership succession issues, mergers are often seen as a solution to these issues and an effective method of reducing risk.
Practice Mergers – Property Considerations
As a starting point to a merger, practices should consider whether they share the same culture and ethics; this will significantly contribute to the success of the merger and future working relationship running smoothly. Then, a combined partnership agreement should be completed by all the merging surgeries. This agreement should be drawn up by a specialist primary care solicitor to ensure it is fit for purpose.
To avoid major property issues during a merger, we strongly recommend that the surgeries neutralise their equity and liabilities at the outset. As each partner’s share is equal, this should prevent future bias, enabling decisions to be taken that benefit all parties equally. This avoids a scenario that would benefit one surgery above others, e.g. one property closing, creating a loss for one party and/or another property expanding, creating a profit for another party.
In order to accurately equate property shares, each surgery should be valued to ascertain its current market value. Valuing GP premises is a specialist area, as the basis of valuing a GP surgery is different from the valuation of other commercial premises. A firm of experienced healthcare surveyors should have access to a significant amount of up-to-date comparable evidence, which will enable them to produce a reliable market valuation of a practice.
Once equity and liabilities are neutralised, then an estate’s strategy can be implemented. There are many estate strategies open to surgeries during a merger, depending upon the circumstances of the parties involved. Factors to consider include the profile of the estate now and what it would look like in 5, 10, or 15 years’ time, as it’s likely to be very different. A key consideration is whether the type of property fits into the profile of buildings in the NHS Long Term Plan.
The GP Contract and property – In summary
GP Surveyors foresees the new GP contract as further evidence that PCNs are here to stay. Coupled with the rise in practices facing succession issues, we anticipate additional practice mergers. Although practice mergers can present some property challenges, these can be addressed with careful consideration, planning, and the engagement of a specialist primary care solicitor and surveyor.