Protect Practice Profits How to Protect Practice Profits and More Peter Farrier (FCCA) Director © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 9248 4356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

© Morris Crocker Limited 2015 KEY AREAS Optimising income Checking NHS statements and claims made Controlling costs Avoid surprises Challenges faced and opportunities Characteristics of a high earning practice © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

© Morris Crocker Limited 2015 OPTIMISING INCOME Clear understanding of what your practice is entitled to under enhanced services Floor space use, are all rooms fully utilised. By whom and for what? Private Fees, ensure good credit control system in place. Accurate coding and internal audits on a regular basis © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

OPTIMISING INCOME cont. Research income – any available? If so, is it profitable? Training – Scope to be a GP training practice? Pilot training for other clinicians? Drugs – All reimbursable items on a separate FP control, ordering and stock levels. © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

CHECKING NHS STATEMENTS AND CLAIMS MADE Need to create a quasi invoice system. Ensure claims sent are followed up and agreed to payments received. Use your accounting system or spreadsheet to compare same month year on year for omissions or errors on payments made. © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

CHECKING NHS STATEMENTS AND CLAIMS MADE cont. If using a spreadsheet for collating claims before submitting, always check formula to avoid over/under claiming. MUST check superannuation contributions for all new partners, salaried GPs, leaving partners/GPs and any GP who has opted in or out of the scheme. © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

© Morris Crocker Limited 2015 CONTROLLING COSTS Variable costs are normally linked to activity, so ensure income claim is made as well Staff costs can vary, there must be systems in place to authorise overtime, pay rises and other increases Many costs in general practice are fixed, so hard to change © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

CONTROLLING COSTS cont. Look for monthly payment options and ensure you are happy with the cost/benefit of these costs Buying groups (IPC, etc) can be of benefit Make sure internally only certain staff can order and authorisation system in place © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

© Morris Crocker Limited 2015 AVOID SURPRISES Do not wait for the Accountant! Use your accounts software or spreadsheets to their full potential Budgets are a must. These need to be realistic, starting from agreed goals Monitor budgeted/expected results against actuals © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

© Morris Crocker Limited 2015 AVOID SURPRISES cont. If a dramatic change in the practice, flex the budget Online accounting - very strong in this area Leased premises? Review the dilapidation clauses to see whether annual provision is needed Always review estimated superannuation forms if a material change in year occurs TAX! Accountants to advise and communicate © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

© Morris Crocker Limited 2015 CHALLENGES FACED AND OPPORTUNITIES Succession (obvious!) Patient demand SFE 2017/18 brings some optimism & potential MCP/ACO models … Other medical clinicians can prove invaluable Government ….! Changes to weighted patient calculation could be bitter sweet © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

OF A HIGH EARNING PRACTICE CHARACTERISTICS OF A HIGH EARNING PRACTICE Caveat – Every practice is different! Good ratio of full time equivalent partners per patient is a strong start Some geographical rewards and opportunities that cannot be changed or copied Strong internal controls on financial aspects for both income and expenses Good level of non-core income from NHS and Non-NHS sources © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

OF A HIGH EARNING PRACTICE cont. CHARACTERISTICS OF A HIGH EARNING PRACTICE cont. Actual -v- budgeted results monitored and acted upon Multi-skilled staff across all admin and lower medical care Partners’ rotas planned and partners covering each other where possible to reduce unnecessary locums. The right blend of ‘triage’ offered without a GP Lowering patient expectation to a realistic level to allow the service to be delivered. © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

QUESTIONS?

© Morris Crocker Limited 2015 DISCLAIMER These notes have been prepared for the use of delegates at WSPMA held on 5 September 2017. They are not a substitute for detailed professional advice either for those delegates attending the presentation or any other person who may read the notes. No responsibility can be accepted by the speaker or Morris Crocker for the consequences of any action taken or refrained from being taken as a consequence of reading these notes or attending the seminar for which they were prepared. © Morris Crocker Limited 2015 Peter Farrier, Client Director, Morris Crocker, Station House, North Street, Havant Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk

Station House, North Street Peter Farrier Director Morris Crocker Station House, North Street Havant, Hampshire PO9 1QU Tel: 023 92484356 Email: pf@morriscrocker.co.uk www.morriscrocker.co.uk