Community Health Partnership and NHS Property Service issues

Many GP practices are facing serious difficulties related to increases in service charges. This is our guidance for practices, including tips for lease negotiations.
Location: England Wales
Audience: GPs Practice managers
Updated: Monday 18 May 2020
GP practice article illustration

The BMA is aware that many GP practices in NHS PS (NHS Property Services) or CHP (Community Health Partnership) are facing serious challenges as a result of significant increases in service charges. Many practices are in long-running disputes.

These increases are often levied by NHS PS or CHP without reference to the contractual arrangements (or lack thereof) that are in place.

Practices are rarely given an itemised list of the charges. When they are, there are often errors or incorrect charges included. These issues are often when NHS PS are negotiating a lease with a practice.

 

Current charges

The BMA disagrees with NHS PS that it is entitled to recover service charges from GP practices on a full cost recovery basis and/or relying on its 'consolidated charging policy', regardless of the agreed terms of the tenancy.

Practices should only make payments if they agree with the legal basis upon which NHS PS/CHP have claimed the charges are due and agree they are accurate.

The 'consolidated charging policy' which NHS PS relies on does not necessarily form part of every lease and tenancy. In many cases it will not have any legal status without prior agreement by the GP practice.

Guidance on service charges

The BMA GPs committee will stand with you where, despite there being no legal basis to do so, NHS PS enforces these charges. 

We have been working to reach an agreement nationally. We are prepared to consider all options to reach a fair process for calculating service charges. The process should take into account previous arrangements and not result in practices having to fund the historic neglect of buildings owned by NHS PS or CHP.

We are supporting five GP practices who have started court proceedings against NHS PS to get clarification of the basis on which NHS PS calculates service charges.

 

Lease negotiations

  • It is vital that you do not sign any lease or Heads of Terms (including those based on the national template GP lease) until you fully understand and are comfortable with your liabilities.
  • Appropriate due diligence as to your potential liabilities should be carried out.
  • Care should be taken on the issue of service charges so as to avoid a situation where there is an exposure to uncapped and unreasonable costs.

 

Service level agreements and charters

Some practices have reported receiving facilities management service level agreements (SLAs) and/or similar documents badged as 'charters' from NHS PS.

These documents outline the services that will be received and the standard practices should expect, a further cost may then be determined. They generally do not constitute legally binding agreements.

While clarity provided by NHS PS is welcomed, information on services and standards should not be considered in isolation.

The services to be provided must reflect the terms of occupancy and should only be addressed and agreed along with the costs of those services by reference to any lease or tenancy that is in place.

Care should be taken to avoid the issue of agreeing services in isolation of the cost and without any regard to the existing terms of the tenancy.

 

Transitional funding

Some transitional arrangements are being offered to either:

  • cover increased costs that NHS PS charge
  • act as an incentive for practices to sign a new lease.

Agreements for transitional funding should only be entered into where you are entirely satisfied that when the transitional period ends, you will not be left having to meet increased costs.

In the BMA’s view, transitional arrangements are not the solution. 

 

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