New models of care Mergers and Federations

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Presentation transcript:

New models of care Mergers and Federations Paul Conlan, MRICS, Operations Director, RICS Registered Valuer Regulated by RICS T: 0114 281 5850 I E: pc@gpsurveyors.co.uk I W: www.gpsurveyors.co.uk I

New Models of Care The Super Practice: Still extremely rare. Desires of policy makers to streamline 7,500 GP Practices into 1,500 Hubs seems ambitious and unattainable when real world factors are considered. Property would seem to have been set aside (bad idea). Issues with Property equity and liabilities.

New Models of Care - Federations Sharing responsibility for delivering high quality patient focused services. Property is usually set aside and remains vested with individual Practices. Property likely to become an issue when there is a move to rationalise estate and streamline services.

New Models of Care - Mergers Two or more Practices joining together to form a single Practice. Equating property shares and liabilities highly recommended at out set – Specialist Surveyor essential to provide suitable valuation advice. Property likely to become an issue later if not dealt with initially.

Why merge? Spread Risk (recruitment crises / succession planning issues / security of service provision). Economies of scale, increase access and service provision. Operational efficiencies. Pool and develop skills – training. Reduce / Spread workload - greater degree of cover for absences etc.

Estate Strategy Property must first be equated – essential. Once equity and liabilities are neutralised then an Estates Strategy can be implemented. Implementing an Estates Strategy prior to neutralising equity and liabilities is likely to create issues – as strategy could be to close a property (creating a loss for someone) and/or expand a property (creating a win for others).

Merger Guidance http://www.bmalaw.co.uk/wp-content/uploads/2015/03/BMA-Law-Practice-Merger-Guidance-Sept-2016.pdf

Mergers and Federations – remember! Mergers / Federations – Will undoubtedly create property issues. Requires an estates strategy in place from the outset or very near beginning – why?

For additional information and advice contact GP Surveyors on 0114 281 5850 pc@gpsurveyors.co.uk www.gpsurveyors.co.uk Regulated by RICS T: 0114 281 5850 I E: pc@gpsurveyors.co.uk I W: www.gpsurveyors.co.uk I