What will the PCTs do with the property they own?
Healthcare professionals may be aware that one of the main areas that is yet to be resolved in relation to the proposed health bill, is what is to happen with the PCTs’ Estates.
In August 2011, The Department of Health published a briefing note relating to The Future Ownership and Management of Estates and the Ownership of Primary Care Trusts.
The key principles underpinning this guidance are:-
- The PCT’s duty to protect assets and maintain future flexibility.
- Ensuring efficiency.
- Supporting the provisions for fit for purpose buildings.
- Ensuring value for money.
- Observing efficient Estates Management.
Are you occupying PCT premises?
It is the latter point that will affect healthcare professionals such as GPs who are currently in PCT premises. It is highly common for GPs to be in PCT owned premises without actually having a lease and we suspect that following this guidance, there will be a move by PCTs to try and identify occupiers and put in place formal leases.
The rental payment will be high on your list of issues to consider. You will probably find that either you haven’t paid a rent or that a nominal amount has been set for the rent, but from a practical perspective, you have never actually paid it. However when you sign the lease, your legal obligation to pay the rent will be enshrined in the lease. There will then be other very important questions to consider, such as who has paid the outgoings or paid for the repair of the premises, and who has actually undertaken the repairs to the premises?
As well as what costs will you have to pay under the lease, you need to consider how long will you lease be for. If you have a GMS Contract, that contract is ongoing but you still might not want to be tied to the premises for a lengthy period of time, as you may want to consider moving to newer premises or you may be a smaller practice with no successors. The question will then be whether or not you can agree for any break clauses to be added to the lease, so that you can terminate it early on certain circumstances occurring.
The intention at this stage is that the PCT will not transfer ownership of its property to other NHS Trusts or Foundation Trusts, where the majority of occupiers are primary care providers. Therefore the move to properly document GPs and other healthcare professionals occupation of premises, may not happen overnight, but it is something that is highly likely to happen in the near future. Indeed as a firm we are already starting to see movement in this direction.
For further information and advice, please contact Louise Robinson using the details below.
Call +44 (0) 161 234 8876 or send an email
