6. WORKFORCE
6.1.8 What are the costs of the new GMS contract
in each year from 2003-04? (Q77)
Answer
1. The information requested is given in
table 77.
2. The introduction of the contract was
originally underpinned by a three-year deal ending in 2005-06.
From 2006, the contract is now subject to annual negotiation
between NHS Employers (NHSE) and the General Practitioner Committee
(GPC) arm of the British Medical Association.
3. In 2006-07, the NHSE negotiated no inflation
uplift or cost pressures applied to any element of the contract
on GP pay. In 2007-08, following GPC's decision to go to the
Doctors' and Dentist's Review Body (DDRB), they similarly agreed
further constraint on GP pay through a second year of no inflationary
uplift.
4. In 2008-09, the DDRB recommended a 2.7%
increase in global sum payments but with a corresponding reduction
in the top up payments that most practices receive under the Minimum
Practice Income Guarantee (MPIG). This resulted in around 91%
of GPs pay getting no inflation uplift for the third year running.
The other 9% would receive up to 2.7% on half of their income,
that is on the payments they receive for providing core essential
services to their patients. It also meant that most of the 1.5%
investment guarantee (around £100 million) could be
reinvested in new enhanced services for which the Department went
on to create new services, eg health checks for people with learning
disabilities and alcohol abuse.
5. The government has now accepted in full
the DDRB 2009-10 recommendation of a 2.29% average gross
uplift in general medical service contract payments. This increase
has been applied differentially to the various components of the
contract to address funding inequalities connected to the MPIG,
which DDRB expect to result in an average net increase to profits
of 1.5% for GPs.
6. The 2009-10 agreement will lead
to the halving of expenditure on MPIG currently from £285 million
in 2008-09 to around £130 million. This is a major
step in introducing more equitable funding, with more money following
the patient if they switch practice.
Table 77
COSTS OF THE NEW GMS CONTRACT
|
£ billion
Financial year
| Cost |
|
| 2003-04 | 5.8
|
| 2004-05 | 6.9
|
| 2005-06 | 7.7
|
| 2006-07 | 7.8
|
| 2007-08 | 7.9
|
| 2008-09 | 8.0
|
|
| Source: |
Primary Medical Care, DH
|
| Footnotes: |
| 1. 2008-09 data is based on the nGMS FIMS(FHS)4 P16 final audited outturn returns from the 152 England PCTs.
|
| 2. No forecast figures are currently available for 2009-10.
|
| 3. Data for years 2003-04 to 2008-09 is available in the public domain.
|
| 
