Practice manager General practitioner England Contract

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Focus on the global sum allocation formula (Carr-Hill formula)

The global sum allocation formula, or Carr-Hill formula, has been used as the basis of core funding for GMS practices since the inception of the new GMS contract in 2004. 

This short explanatory paper has been produced now because the allocation formula is newly relevant to many GP practices.

There are two reasons for this:

  1. The Minimum Practice Income Guarantee (MPIG), which protected a significant proportion of GMS practices from the full effect of the formula through correction factor payments, is being phased out over a seven year period

    By 2020 the core funding of all GMS practices will be paid based on the global sum, increasing the significance of the allocation formula

  2. As part of the ongoing review process for PMS practices, the funding for most PMS practices is moving to a weighted capitation basis in line with GMS practice.

This paper reminds practices how global sum payments are calculated and explains why the formula is currently being reviewed by NHS England.

Read the paper on Focus on the global sum allocation formula (Carr-Hill formula) (PDF)