PCTs seeking claw backs from GP Practices - examples of claims in respect of overpayments
The recent article in PULSE Magazine alerting practices to PCTs’ attempts to claw back contract overpayments will be unwelcome news for GPs and could seriously impact on their cash flow. The article gave examples of claims in respect of payments made many years ago.
Repaying overpayments enjoyed by others
The PCT claw backs are creating an unfair situation in that often the current partners in a GP Practice are left repaying overpayments that were made to former partners. Current partners often feel particularly aggrieved because when the former partners received the over payment it is likely that their share of profits were higher than those being enjoyed by the current partners. Once they have retired or left the Practice it is difficult for the current partners to claw back the over payment from them.
What can the current partners do?
To try and effect fairness between current and outgoing partners we have come up with some suggested solutions:
- Put an extra clause in the Partnership Agreement that provides when calculating the payment to an outgoing partner the current partners can retain an agreed sum of money to cover any claw backs. The issue is for how long should the current partners be able to retain such monies? The answer to this is for the partners to agree what is fair and reasonable (perhaps current partners should ask themselves how long they would be happy to wait for a retained sum when they are outgoing partners.
- Alternatively upon a partner leaving he could agree to indemnify his former partners against his share of any claw back. This would offer some protection for the current partners but an outgoing may prefer to sail in to the sunset without the danger of future liabilities arising.
- When dealing with leases where the PCT is the Landlord we look to introduce clauses obliging the PCTs to demand payments for example for electricity and telephone charges promptly so that unascertained payments are not demanded years after the electricity is consumed.
However your Practice decides to deal with this problem it is important that you do address it. Please contact the Head of our Healthcare Team for further specialist advice and assistance using the details below:
Email Anne Fairhurst or call 0161 234 8807
