What is MPIG?
The current GP contract was introduced in 2004, and was a major shift in how funding was allocated to practices due to the use of a new formula for calculating the amount of funding per practice. The funding formula resulted in some practices receiving less funding than under the previous contract.
To mitigate this, the BMA negotiated a minimum practice income guarantee. This was an assurance that no practice would receive less than they previously had, simply because of a change to the funding calculation; instead the contract would include a ’correction factor’.
Over time, as funding into the core GP contract increases, the correction factor reduces until it is no longer required.
Phasing out MPIG
Correction factor payments are being phased out over a seven-year period (2014-2021). The total sum of correction factor payments is redistributed across all GMS practices.
Because of the way that MPIG funding is distributed, approximately half of practices gain and half lose funding over the seven-year transition period.
The phasing out of the MPIG started at the beginning of the 2014-15 financial year, with practice correction factor payments reduced by one-seventh.
This will happen every year until all GMS practices are receiving the same weighted funding per patient by the beginning of the 2020-21 financial year.
What practices should be doing now
NHS England sent details of the worst hit practices to all area teams. They should have already discussed the additional support available with relevant practices.
All GMS practices should consider how these changes affect them, taking the following steps as a minimum:
- use the ready reckoner developed by NHS England to calculate the estimated impact of these changes
- put together a financial plan based on their projections
- if adversely affected, consider ways of increasing financial stability and cost effectiveness, eg reviewing services and staffing levels, and the possibility of collaboration with other practices.
If you have concerns
You might have concerns that your practice's capacity to continue delivering services to patients will be significantly affected by this process. You should request to meet with your area team and CCG officials and contact your LMC for advice and support during local discussions.
The BMA GP committee recommends that, during local discussions, practices clearly identify the additional services they would have to end if resources were to diminish.
Practices in this situation should also alert their local MP and patients. LMCs should be able to assist with the coordination of correspondence on behalf of affected practices.