GP Practices Benchmarking Report 2017 - EQ …...Page 4 Kreston GP Practices Benchmarking Report...

GP Practices Benchmarking Report 2017

in association with

Copyright © Kreston UK. All rights reserved.

ConfidentialityThe contents of this document are intended for selected recipients only. No part of this document should be disclosed to any third party without the written permission of Colin Haw ([email protected], 0333 123 7171).

Report contents

Page

1. Introduction 1

2. The authors and contributors 2

3. The GP Practices Benchmarking Report and how to use it 3

4. Executive summary 4

5. Income 6

6. Expenditure 11

7. Age and gender profile 17

8. Dispensing practices 23

Appendices:

1. Definitions 24

2. Practice profile and partner sessions 25

3. Income 31

4. Expenditure 33

5. Dispensing practices 37

Kreston GP Practices Benchmarking Report 2017Page 1

1. Introduction

Introduction

Welcome to the Kreston UK 2017 benchmarking report.

The statistics are compiled from 161 Kreston GP practices from throughout the UK, providing a significant range of data from which to produce average figures for a GP practice. It is necessary to split Personal Medical Services (PMS) and General Medical Services (GMS) practices due to the differential in profitability between the two contracts, and the results of this benchmarking exercise emphasise this point.

Pressure on GP practice profitability continues, mainly due to NHS England’s PMS contract value reviews and, in the case of GMS practices, the MPIG withdrawal over a seven year period from April 2014.

The Prime Minister’s Challenge Fund has been introduced to support seven day GP access. The proposed increase in patient appointment availability, with the goal of reducing A & E admissions, will prove very difficult in light of the lack of GP capacity. The Government needs to address the capacity issue to ensure that the GP system is not put under irreversible strain.

The low number of doctors moving into general practice is disturbing. NHS England needs to increase confidence in the system to attract GPs. Over the last year we have seen GP contracts moved away from GPs to hospitals and other providers. Some of the alternative bodies lack experience in relation to the management and running of a general practice contract.

From the outside, it appears that GPs are being used as political footballs and their professional bodies need to have more power in contract negotiations. The recent move to disclose GPs’ profits on their practice website, as a contractual term, is an example of an intrusion into personal information and in the present format, the information provided is meaningless . It is essential that control of NHS policies is moved away from the politicians to an independent body, similar to the banking system.

Our benchmarking report gives a detailed insight into the income and expenditure of a GP practice and the differences between the two contracts.

The survey is based on information from GP accounts ending during the tax year to 5 April 2016. Thanks go to all Kreston UK group members for submitting their data to a strict timetable. Thanks must also go to everyone in the BHP Healthcare team and my co-author, for the work put in to ensure a high quality report.

Finally, thanks must once again go to all of the Kreston GP clients. We hope that you find the report useful and interesting. Please do let us know if there are any further benchmarks or improvements that you would like to see in future reports.

Colin Haw

Chair of the Kreston UK Healthcare Group

December 2017


2. The authors and contributors

The authors and contributors

Colin and Jenny are both members of the ICAEW Healthcare Group and together head up the Healthcare team at BHP, which deals with around 100 GP practices, in the region of 400 locum GPs, 150 dentists and other healthcare related clients including pharmacies, opticians and care homes. They are supported by a team of 30 professionals, including qualified and trainee accountants.

BHP is a founder member of the Association of Independent Specialist Medical Accountants (AISMA), a national network of accountancy firms which provides expert advice to medical practices, sessional GPs and hospital doctors.

The contributors

Bishop Fleming – Tim Godfrey, Andrew Sandiford, Steve Tucker

Duncan & Toplis – Kay Botley, Christine Newitt

EQ Accountants – Louise Grant, John Langlands

Horsfield & Smith – Glynn Warburton, Anthony Nuttall, Peter Nicol

James Cowper Kreston LLP – Louise Wickens, Robert Holland, Annette Warren

Mitchell Charlesworth – Paul Durrance

PEM – Stephen Hillyard, Kelly Bretherick, Stephen Peak, Caroline Fagence

Kreston Reeves – Clive Relf, Stephen Dawson

Kreston UK is a brand representing firms based in the UK, Ireland and Isle of Man which are each members of Kreston International, a global network of independent accounting firms. Each member is a separate and independent legal entity and as such has no liability for the acts or omissions of any other member firm. Kreston UK and Kreston International provide no services to clients and have no liability for the acts or omissions of any member firm.


3. The GP Practices Benchmarking Report and how to use it

What is the GP Practices Benchmarking Report?

The GP Practices Benchmarking Report is intended to help the GP sector gain a deeper understanding of the financial performance of practices.

The report has been prepared from the accounts of 161 GP practices, with year ends falling in the tax year to 5 April 2016, of which 67 hold PMS contracts and 94 hold GMS contracts.

The report focuses on the key benchmarks, however, the full set of data, split between GMS and PMS practices is provided in appendices two to seven.

A detailed explanation of the definitions used throughout the report can be found in Appendix one.

Figures in brackets throughout the report refer to figures from last year’s GP Practices Benchmarking Report.

Previous benchmarking reports focussed on results per partner session and, while headline results per partner session are shown in Appendix 2, the 2017 report concentrates on results per patient. Patient numbers are actual numbers rather than weighted.

The reason for the change is a shift in the way GP practices are staffed. The ongoing reduction in GP partner capacity and sessions worked means that practice results per partner session are becoming increasingly difficult to compare.

How to use the GP Practices Benchmarking Report

GP practices may calculate their own benchmark data with reference to the definitions in Appendix one. This may be compared to the average data per contract type, PMS or GMS, provided within this report. Year on year comparisons will enable practices to identify whether movements in their performance are in line with the general trend.


4. Executive summary

Profitability per session has increased by 15.3% in GMS practices this year to £15,682, while PMS profit per session has increased 3.6% to £16,757. However, sessional results are becoming increasingly difficult to compare due to variations in the way that practices are staffed, as a result of falling GP capacity. For this reason, the focus of the 2017 Kreston Benchmarking Report is on results per patient.

Income per patient has fallen between 2016 and 2017 across both GMS and PMS practices by 3.3% and 3.5% respectively. PMS practices remain slightly ahead, despite the recent PMS reviews, at £148.74 (£154.19) per patient compared to £145.26 (£150.16) per patient in GMS practices. Some PMS practices have negotiated funding for work carried out within their PMS contract which is in addition to the core GMS work.

Conscious of falling income, practices have made efforts to control expenditure, which has also fallen, most markedly within GMS contracts which show a fall of 5.2% to £94.12 (£99.29) per patient. PMS contract expenditure shows a fall of 3.2% to £101.15 £104.48) per patient.

Looking more closely at the detail, it is apparent that, while certain administration costs are reducing, overall staffing costs per patient are increasing, particularly in GMS practices. This is due to a shift from practices being resourced largely by GP partners to reliance on other healthcare professionals, particularly locum and salaried GPs.

Average sessions per partner have fallen in both contract types being 7.01 sessions in PMS practices and 6.78 sessions in GMS practices compared to 7.07 and 6.82 respectively in the previous year.

PMS practices continue to spend a slightly higher proportion of their income, actually achieving a greater total profit level as a result of a higher level of income through greater patient numbers. This position is attained by employing more staff and GPs to deal with the greater workload.

Overall, on a per patient basis, GMS profits have increased by 0.6% to £51.14 (£50.86) per patient while PMS profits have fallen by 4.3% to £47.59 (£49.71) per patient.

In conclusion, profits remain fairly static in comparison with the previous year. These profits are shared amongst fewer GP partners resulting in increased profit per GP partner. However, the reduction in partner numbers results in a significant increase in workload and strain on the individual partners, particularly taking into account the increased patient demand. We understand from our GP clients that their working hours per session are increasing year on year.

Overall, PMS practices continue to be more profitable than GMS practices although the gap is narrowing as the result of the PMS contract reviews takes effect. The higher earning practices will generally have higher than average patient numbers per partner and/or will earn income from outside of the PMS or GMS contract. They will also maintain good control of practice expenditure and monitor through a budgeting process.


“profits remain fairly static in comparison with the previous year”


5. Income


5. Income

Both GMS and PMS practices have experienced a significant decrease in reimbursement income, of 21.5% and 23.3% respectively. Reimbursements have fallen across the board but notable reductions are seen in trainee salaries and training grants. This emphasises the continued reduction in medical students choosing General Practice as a career which also affects the healthcare capacity of the practices.

Rent reimbursements have also decreased, which is not unexpected given NHS England’s stated intention to reduce costs in this area.

Significant reductions in rates reimbursements are due to large rates refunds from local councils in 2016 as a result of rates reviews across some practices. The refunds were repaid to the NHS, who reimburse this expenditure, and therefore do not affect practice profits.


5. Income

The proportion of income between the two contracts is comparable. The following points are noteworthy:

Seniority

Seniority ceases in 2020, new entrants to the scheme are no longer permitted from 1 April 2014. GPs currently receiving seniority will continue their entitlement with the caveat that NHS England achieves a reduction in the overall fund of 15%. Reductions to seniority payments commenced in October 2015 with compensating adjustments to contract values.

Contract payments

PMS practices remain slightly ahead, despite the recent PMS reviews, at £85.37 (£83.02) per patient compared to £83.65 (£81.17) per patient in GMS practices. Some PMS practices have negotiated funding for work carried out within their PMS contract which is in addition to the core GMS work.


5. Income

The graphs shows the division of the sources of non-NHS income.

Last year appointment fees in both GMS and PMS practices reduced by approximately one third probably due to changes in contractual arrangements with local hospitals and Clinical Commissioning Groups and reduction in funding for these posts. This trend has reversed this year with appointment fees in PMS practices increasing by 54.9% to £1.41 (£0.91) per patient and in GMS practices increasing by 16.8% to £1.18 (£1.01) per patient possibly to subsidise other areas of falling income.

Sundry fees, comprising largely medical and insurance reports, have shown a steady decline in recent years. This, in part, reflects a downward trend in the economic environment but also a move towards requests for copies of medical records, rather than reports. Sundry fees have reduced by 20.7% in PMS practices to £1.84 (£2.32) per patient and also in GMS practices to £2.09 (£2.49) per patient. Due to the impending GDPR (General Data Protection Regulation) requirements, sundry fees are likely to fall further in the future.


“Salaried GP and locum costs represent a major element of GP practice expenditure and

require constant monitoring and consideration at finance meetings.”


6. Expenditure

Comparing the two contracts, PMS practices spend a larger proportion of their total expenditure on GP costs.

This is linked to historical growth funding in PMS contracts . However, in 2017, GP costs in GMS practices have risen 15.9% to £18.09 (£15.61) per patient, closing the gap between them. This may be due to difficulties in securing new partners as existing partners retire in GMS practices. GP costs in PMS practices have remained almost static at £21.09 (£21.18) per patient.

Staff costs, which include administration and nurse costs, are similar in both contracts at £46.12 (£45.44) per patient in PMS and £44.62 (£46.36) per patient in GMS. Both contract types have seen little movement in staff costs from last year. Staff costs represent the largest proportion of a GP practice’s expenditure and therefore is a key area from a management and profitability viewpoint.

Trainee salaries in PMS of £4.87 (£6.13) per patient are 82% greater than GMS of £2.68 (£4.75) per patient, reflecting a greater number of PMS training practices. It is worth noting that trainee salaries have fallen 20.6% in GMS practices and 43.6% in PMS practices, highlighting the reduction in the number of medical students opting for a career in General Practice. Trainee salaries are reimbursed by the NHS, resulting in no cost to the practice.


6. Expenditure

Following increases in 2016, locum costs have once again increased in both contracts as GP practices struggle to fulfil the clinical sessions and deal with ever increasing patient demand. GMS practices show an increase of 11% to £4.86 (£4.38) per patient while locum costs in PMS practices have increased by 16.5% and are now also at £4.86 (£4.17) per patient.

Salaried GP and locum costs represent a major element of GP practice expenditure and require constant monitoring and consideration at finance meetings. These costs represent 17% (17%) of the total expenditure in PMS practices and 15% (12%) in GMS practices.


6. Expenditure

Premises costs per patient in GMS practices are 22% lower than last year at £13.59 (£17.47) per patient. PMS practices have seen a 14% decrease at £13.36 (£15.45) per patient.

Rent costs have decreased by 21% in GMS practices to £7.71 (£9.77) per patient in line with the reduction in rent reimbursement. Rent costs in PMS practices show a small increase of 2.4% to £8.04 (£7.85) per patient.


6. Expenditure

Administration costs have fallen in both contract types as practices look for cost savings. GMS costs have fallen by 1.9% to £9.76 (£9.95) per patient while PMS costs have fallen 5.2% to £10.46 (£11.03) per patient. Despite increasing medical indemnity costs, total subscription costs have fallen by just under 3%. This may reflect the reduction in GP partners. In the current year, practices have received a contribution of 51.6 pence per patient from the NHS to help towards the increasing cost of indemnity cover. The annual Care Quality Commission (CQC) subscription is now also reimbursed by the NHS.


6. Expenditure


Finance charges will vary depending whether the loans are in held in the partnership name, and are therefore shown within the practice accounts, or by individual partners held outside of the accounts and therefore are not reflected within the above figures.

Bank finance is an area of expertise in its own right. There are certain banks that have healthcare specialist managers who understand how GP practices operate and their funding requirements. This can ease the process of arranging bank funding.

6. Expenditure


7. Age and gender profile

The partners age profile shows that almost 50% of GP partners are over 50. We currently see the majority of GP partners retire by age 60 which suggests that a significant number of partners will retire from partnership in the next ten years. The salaried GPs age profile shows that 83% of salaried GPs in both GMS practices and PMS practices are under 50. This indicates that there are a number of GPs available to move into partnership positions. However, a lack of confidence in future income levels and lifestyle decisions appear to be making salaried GPs reluctant to move into practice.



The gender profile of salaried GPs shows that the majority of female salaried GPs are under 50.



The majority of GP registrars, in both contracts, are below the age of 35. There is little difference in the profiles of males and females across the age ranges.


8. Dispensing practices

Dispensing Practices are GP practices which run a pharmacy contract from their surgery premises, dispensing drugs to their patients in a defined geographical area.

Generally, dispensing practices are highly profitable, with the dispensing profits being added to the general practice profits.

PMS practices are showing gross profits as a percentage of fees of 33% (last year – 33%), whilst GMS practices are at 31% (last year – 31%).

The figures will be affected by the size of practice in terms of patient numbers, irrespective of the type of NHS contract, due to the discounts available to the larger dispensaries on drugs purchases. The PMS practices reflect a slightly higher level of gross fees per practice (£758,375) compared to GMS practices (£741,505).

It is likely that gross profit returns will fall in the future due to changes in the Drug Tariff.


Appendix 1 - Definitions

GP: General Practitioner

GMS: General Medical Services

PMS: Personal Medical Services

ICAEW: Institute of Chartered Accountants in England and Wales

Session: Represents a period of half a working day

Seniority: NHS income relating to years of service

Prescribing fees: Fees earned from personally administered drugs work

QOF: Quality and Outcomes Framework

Enhanced services: Services over and above those included in PMS or GMS contracts

Reimbursements: Expenditure reimbursed by the NHS

Training grant: Funding for training GP registrars

Appointments: Contracts for medical work outside of PMS or GMS contract

Staff costs: Administration and nursing staff salary costs

Deputising service: Out of Hours Opt Out charge and other costs to cover times of surgery closure

Out of Hours Opt Out charge: The amount paid to the NHS for cover outside of General Practice hours

Locum costs: Payments to temporary GPs

LMC: Local Medical Committee

MPIG: Minimum Practice Income Guarantee


Appendix 2 - Practice profile and partner sessions

2017PMS

2016PMS

%Change

PRACTICE PROFILE SUMMARY - PER PATIENT

INCOME PER PATIENT 150.51 158.10 (4.8%)

EXPENDITURE PER PATIENT 101.14 104.49 (3.2%)

PROFIT - PER PATIENT 49.37 53.61 (7.9%)

PATIENT NUMBERS 9,514 9,446 0.7%

PRACTICE PROFILE SUMMARY - PER SESSION

INCOME 51,095 49,621 3.0%

EXPENDITURE 34,338 32,797 4.7%

NET PROFIT 16,757 16,824 (0.4%)

AVERAGE SESSIONS PER PARTNER 7.01 7.07 (1.0%)

NUMBER OF PRACTICES 67 64 4.7%



2017GMS

2016GMS

%Change

PRACTICE PROFILE SUMMARY - PER PATIENT

INCOME PER PATIENT 147.86 155.26 (4.8%)

EXPENDITURE PER PATIENT 94.12 99.29 (5.2%)

PROFIT - PER PATIENT 53.74 55.97 (4.0%)

PATIENT NUMBERS 9,529 8,717 9.3%

PRACTICE PROFILE SUMMARY - PER SESSION

INCOME 42,373 41,492 2.1%

EXPENDITURE 26,942 26,534 1.5%

NET PROFIT 15,431 14,958 3.2%

AVERAGE SESSIONS PER PARTNER 6.78 6.82 (0.6%)

NUMBER OF PRACTICES 95 59 61.0%



PARTNERS

AGE 2017PMS

2017GMS

Under 30 1.5% 0.4%30-34 0.0% 0.0%35-39 0.0% 0.6%40-44 3.7% 5.2%45-49 13.8% 10.3%50-54 13.1% 17.4%55-59 20.1% 17.8%60-64 25.4% 23.4%65+ 17.5% 18.7%

95.1% 93.8%

SALARIED GP

AGE 2017PMS

2017GMS

Under 30 2.6% 5.7%30-34 0.0% 0.0%35-39 3.9% 0.9%40-44 26.0% 14.2%45-49 27.3% 26.4%50-54 14.3% 22.6%55-59 11.7% 18.9%60-64 7.8% 7.5%65+ 3.9% 4.7%

97.4% 100.9%

GP Profiles



MALE

AGE 2017PMS

2017GMS

Under 30 0.0% 0.0%30-34 4.6% 6.8%35-39 12.5% 10.2%40-44 11.2% 14.4%45-49 19.1% 15.7%50-54 23.7% 21.2%55-59 19.7% 23.7%60-64 6.6% 7.2%65+ 2.6% 0.8%

100.0% 100.0%

FEMALE

AGE 2017PMS

2017GMS

Under 30 0.0% 1.3%30-34 2.6% 3.5%35-39 15.5% 10.4%40-44 15.5% 20.4%45-49 21.6% 20.0%50-54 27.6% 25.7%55-59 14.7% 13.5%60-64 0.9% 3.5%65+ 1.7% 1.7%

100.0% 100.0%

Partner Profiles



MALE

AGE 2017PMS

2017GMS

Under 30 0.0% 0.0%30-34 14.3% 8.7%35-39 23.8% 23.9%40-44 4.8% 21.7%45-49 9.5% 19.6%50-54 14.3% 10.9%55-59 14.3% 6.5%60-64 19.0% 4.3%65+ 0.0% 4.3%

100.0% 100.0%

FEMALE

AGE 2017PMS

2017GMS

Under 30 5.4% 1.7%30-34 30.4% 18.3%35-39 28.6% 28.3%40-44 17.9% 23.3%45-49 12.5% 18.3%50-54 5.4% 5.0%55-59 0.0% 3.3%60-64 0.0% 1.7%65+ 0.0% 0.0%

100.0% 100.0%

Salaried GP Profile



MALE

AGE 2017PMS

2017GMS

Under 30 25.0% 23.5%30-34 40.0% 23.5%35-39 15.0% 17.6%40-44 20.0% 17.6%45-49 0.0% 17.6%50-54 0.0% 0.0%55-59 0.0% 0.0%60-64 0.0% 0.0%65+ 0.0% 0.0%

100.0% 100.0%

FEMALE

AGE 2017PMS

2017GMS

Under 30 27.3% 20.8%30-34 36.4% 37.5%35-39 18.2% 12.5%40-44 9.1% 12.5%45-49 9.1% 4.2%50-54 0.0% 8.3%55-59 0.0% 4.2%60-64 0.0% 0.0%65+ 0.0% 0.0%

100.0% 100.0%

GP Registrar Profile


Appendix 3 - Income

2017PMS

2016PMS

%Change

INCOME - PER PATIENT

NHS INCOME

Seniority 1.91 2.22 (13.8%)

Prescribing fees 5.33 7.53 (29.3%)

QOF 13.09 13.54 (3.3%)

Enhanced services 20.77 21.22 (2.1%)

PMS contract 85.37 83.02 2.8%

Less: Employer’s pension (partners) (4.89) (5.21) (6.2%)

121.58 122.32 (0.6%)

REIMBURSEMENTS

Rent 11.14 11.71 (4.9%)

Rates and Water 1.36 2.98 (54.6%)

Refuse 0.09 0.11 (14.5%)

Trainees salaries 5.44 6.11 (10.8%)

Training grant 0.88 1.03 (14.2%)

Other income 3.25 6.94 (53.2%)

22.16 28.88 (23.3%)

OTHER INCOME

Sundry fees 1.84 2.32 (20.7%)

Interest received 0.03 0.02 43.4%

Rent 0.52 0.44 18.2%

Appointments 1.41 0.91 53.9%

Other income 2.98 3.21 (7.4%)

6.77 6.91 (2.0%)

TOTAL INCOME - PER PATIENT 150.51 158.10 (4.8%)


Appendix 3 - Income

2017GMS

2016GMS

%Change

INCOME - PER PATIENT

NHS INCOME

Seniority 2.13 2.45 (13.2%)

Prescribing fees 6.13 8.57 (28.5%)

QOF 12.59 13.58 (7.3%)

Enhanced services 19.79 20.83 (5.0%)

GMS contract 83.65 81.17 3.1%

Less: Employer’s pension (partners) (5.90) (5.96) (1.1%)

118.39 120.64 (1.9%)

REIMBURSEMENTS

Rent 11.31 14.07 (19.6%)

Rates and Water 2.12 3.43 (38.3%)

Refuse 0.24 0.09 176.7%

Trainee’s salaries 2.30 4.68 (50.9%)

Training grant 0.86 0.92 (6.2%)

Other income 6.19 6.14 0.8%

23.02 29.33 (21.5%)

OTHER INCOME

Sundry fees 2.09 2.49 (16.1%)

Interest received 0.01 0.01 6.2%

Rent 0.43 0.25 70.2%

Appointments 1.18 1.01 17.6%

Other income 2.73 1.52 78.9%

6.45 5.29 21.9%

TOTAL INCOME - PER PATIENT 147.86 155.26 (4.8%)


Appendix 4 - Expenditure

2017PMS

2016PMS

%Change

EXPENDITURE - PER PATIENT

STAFF COSTS

Salaries and national insurance 41.92 40.90 2.5%

Employer’s pension costs 4.20 4.54 (7.5%)

46.12 45.45 1.5%

GP COSTS

* Deputising service 3.93 3.28 19.8%

Locum costs 4.86 4.17 16.6%

Salaried GPs 12.30 13.73 (10.4%)

21.09 21.18 (0.4%)

TRAINING COSTS


MEDICAL EXPENSES

Drugs and medical supplies 4.12 3.98 3.6%

PREMISES COSTS

Rent 8.04 7.85 2.4%

Rates and water 1.29 3.30 (61.0%)

Refuse 1.14 1.79 (36.3%)

Light and heat 1.08 1.01 7.3%

Insurance 0.47 0.26 82.0%

Repairs 1.34 1.24 8.8%

13.37 15.44 (13.5%)

*including Out of Hours opt out charge



2017PMS

2016PMS

%Change

EXPENDITURE - PER PATIENT (continued)

ADMINSTRATION COSTS

Telephone 0.68 0.68 1.0%

Printing, postage and stationery 1.48 1.54 (4.3%)

Computer expenses 0.30 0.30 (1.2%)

Equipment leasing 0.32 0.33 (2.2%)

Subscriptions 2.84 2.92 (2.8%)

Legal and professional charges 0.46 0.75 (38.7%)

Accountancy 1.30 1.33 (2.4%)

Course fees 0.19 0.23 (19.6%)

LMC levies 0.39 0.40 (3.4%)

Payroll charges 0.05 0.03 59.0%

Depreciation and grants released 0.55 0.62 (11.9%)

Sundry expenses 1.90 1.90 (0.1%)

10.45 11.04 (5.3%)

FINANCES CHARGES

Bank charges and interest 0.11 0.31 (63.7%)

Loan interest 1.02 0.96 5.9%

1.13 1.27 (11.1%)

TOTAL EXPENDITURE - PER PATIENT 101.14 104.49 (3.2%)



2017GMS

2016GMS

%Change

EXPENDITURE - PER PATIENT

STAFF COSTS

Salaries and national insurance 40.82 41.92 (2.6%)

Employer’s pension costs 3.80 4.44 (14.3%)

44.63 46.36 (3.7%)

GP COSTS

* Deputising service 3.64 3.61 0.8%

Locum costs 4.86 4.38 11.1%

Salaried GPs 9.59 7.62 26.0%

18.10 15.60 16.0%

TRAINING COSTS


MEDICAL EXPENSES

Drugs and medical supplies 4.43 3.58 23.7%

PREMISES COSTS

Rent 7.71 9.77 (21.1%)

Rates and water 2.12 3.37 (36.9%)

Refuse 0.70 0.93 (25.3%)

Light and heat 1.10 1.29 (14.8%)

Insurance 0.45 0.28 59.5%

Repairs 1.51 1.83 (17.4%)

13.59 17.47 (22.2%)

*including Out of Hours opt out charge



2017GMS

2016GMS

%Change

EXPENDITURE - PER PATIENT (continued)

ADMINSTRATION COSTS

Telephone 0.72 0.79 (9.2%)

Printing, postage and stationery 1.40 1.44 (2.6%)

Computer expenses 0.32 0.33 (1.5%)

Equipment leasing 0.31 0.29 8.3%

Subscriptions 2.30 2.36 (2.5%)

Legal and professional charges 0.50 0.60 (17.5%)

Accountancy 1.24 1.38 (10.2%)

Course fees 0.16 0.26 (38.4%)

LMC levies 0.39 0.45 (13.9%)

Payroll charges 0.03 0.02 49.6%

Depreciation and grants released 0.42 0.53 (20.5%)

Sundry expenses 1.97 1.50 31.0%

9.75 9.94 (1.9%)

FINANCES CHARGES

Bank charges and interest 0.15 0.41 (63.2%)

Loan interest 0.80 1.17 (32.1%)

0.95 1.58 (40.1%)

TOTAL EXPENDITURE - PER PATIENT 94.12 99.29 (5.2%)


2017PMS

2016PMS

%Change

DISPENSING PRACTICES

NUMBER OF PRACTICES 9 13 (30.8%)

GROSS FEES - PER PRACTICE 758,375 743,382 2.0%

COST OF DRUGS - PER PRACTICE (507,405) (498,008) 1.9%

DISPENSING PROFIT - PER PRACTICE 250,970 245,374 2.3%

DISPENSING PROFIT AS A PERCENTAGE OF GROSS FEES 33.09 33.01 0.3%

Appendix 4 - Dispensing practices


Appendix 4 - Dispensing practices

2017GMS

2016GMS

%Change

DISPENSING PRACTICES

NUMBER OF PRACTICES 23 23

GROSS FEES - PER PRACTICE 741,505 658,481 12.6%

COST OF DRUGS - PER PRACTICE (508,187) (453,252) 12.1%

DISPENSING PROFIT - PER PRACTICE 233,317 205,229 13.7%

DISPENSING PROFIT AS A PERCENTAGE OF GROSS FEES 31.47 31.17 1.0%


About the Kreston UK Healthcare Group

The UK firms that have participated in this report are as follows:

Derbyshire and Yorkshire BHP Chartered Accountants Colin Haw 01246 232 121 [email protected]

South West and Bishop Fleming Tim Godfrey 01803 291100 [email protected] Midlands

East Midlands Duncan & Toplis Kay Botley 01529 303773 [email protected]

Scotland EQ Accountants Louise Grant 01382 312100 [email protected]

North West Horsfield & Smith Glynn Warburton 0161 7615231 [email protected]

Oxfordshire, Thames James Cowper Kreston LLP Louise Wickens 0118 9590261 [email protected] and the South

North West Mitchell Charlesworth LLP Paul Durrance 0151 2552300 [email protected]

Cambridge PEM Stephen Hillyard 01223 728222 [email protected] London and South East Kreston Reeves Clive Relf 01227 768231 [email protected]

Kreston UK is a brand representing firms based in the UK, Ireland and Isle of Man which are each members of Kreston International, a global network of independent accounting firms. Each member is a separate and independent legal entity and as such has no liability for the acts or omissions of any other member firm. Kreston UK and Kreston International provide no services to clients and have no liability for the acts or omissions of any member firm.

The Kreston UK Healthcare group is a network of independent accounting and business advisory firms in the UK that share a common interest and specialisation in the Healthcare sector.

John Langlands

John is a partner at

EQ with over 40

years experience.

Louise Grant

Louise is a partner at

EQ with over 14

years experience.

John and Louise spearhead our services to GP practices and Locum GPs within EQ Healthcare

which is a specialist brand of EQ Accountants LLP. They are supported by a highly trained team

who take a genuine interest in our clients and tailor our service to suit the needs and demands of

each business. EQ has a strong reputation for a quick, friendly and reliable service coupled with

imaginative solutions and positive encouragement to our clients.

For more information on what we do or what our clients think, you can visit our website via

www.eqaccountants.co.uk/healthcare.

http://www.eqaccountants.co.uk/healthcare

GP Practices Benchmarking Report 2017 - EQ …...Page 4 Kreston GP Practices Benchmarking Report...

Documents

Transcript of GP Practices Benchmarking Report 2017 - EQ …...Page 4 Kreston GP Practices Benchmarking Report...