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This week Ben is joined by Neha Shah, a Legal Director from Capsticks and Accountant Colin Haw from BHP Chartered Accountants. In this episode they discuss some of the legal, financial and governance issues facing general practice as it begins to establish Primary Care Networks. Specifically they consider how networks will be hosted and the implications for liability, choices around the organisational form, employment contracts, pensions and VAT.

Show Notes

Neha and Colin explain their recent experience of developing primary care (0:54)

The main issues raised are related to the “people” and their relationships (2:11)

Trust is the key and starting with the “why” (4:10)

The implications of the introduction of mandatory networks (4:54)

Resolving the problem of practices who don’t want to join (6:08)

How will the Networks be hosted? (7:18)

Sub-contracting (8:53)

What is the best option for hosting and how will the money flow? (9:34)

Limiting liability (11:14)

How will it work financially? Limited Company or Community Interest Company? (12:43)

The issues against establishing Community Interest Company (14:03)

More flexibility through a Limited Company (14:57)

Employing the staff – who holds the employment contracts (15:24)

Holding NHS pensions (16:20)

Complexity around employment contracts and the DES (16:53)

The role of the federation (17:41)

VAT for non-NHS bodies and the “turnover limit” (18:30)

Security of income and longer term contracts (19:51)

The VAT turnover limit in detail (20:18)

Doesn’t apply to clinical work (21:11)

VAT difficulties and shared hubs (21:38)

Advice for practices and federations now (22:09)

Everyone down the pub! (23:14)

Move quickly or miss out and know your area (23:57)

Finding out more (24:43)

Capsticks website is available here

BHP website is available here