What type of rent reimbursement is made to a GMS practice where the property is owned by a former GP?
The type of rent reimbursement that the NHS makes to GP contractors is dependent on who owns the premises where the primary medical services are being provided.
It is generally accepted that provided at least one of the GPs who has an ownership interest in the property is also party to the GMS contract then reimbursement would be made on a notional rent basis. Notional rent payments are made in line with direction 42 and 43 of the National Health Service (General Medical Services – Premises Costs) Directions 2024 (PCDs).
However, it is becoming increasingly common for retiring GPs to maintain ownership of the practice premises. At the point the GP(s) who owns the premises cease to be party to the GMS contract, they become the landlord of the property. A lease will need to be put in place between the landlord (the former GP(s) and owners of the property) and the tenants (the current GP partners delivering primary medical services). In these cases, contractors will be entitled and expected to apply for leasehold rent reimbursement instead of notional rent. The commissioner may, at its discretion continue to reimburse notional rent on an interim basis to allow time for a new lease to be put in place. This is set out in direction 33 (10) – (12).
