1. 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:

2. © 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:

3. © 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:

4. 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:

5. 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:

6. 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:

7. © 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:

8. 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:

9. © 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:

10. © 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:

11. © 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:

12. 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:

13. 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:

14. QUESTIONS?

15. © Morris Crocker Limited 2015
DISCLAIMER
These notes have been prepared for the use of delegates at WSPMA held on 5 September 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:

16. Station House, North Street
Peter Farrier
Director
Morris Crocker
Station House, North Street
Havant, Hampshire
PO9 1QU
Tel: