How did we get here?
As part of the GP contract imposition in 2013, the Department of Health decided to phase out correction factor payments over a seven-year period (2014-2021). The total sum of correction factor payments will be redistributed across all GMS practices.
Because of the way that MPIG funding is currently distributed, approximately half of practices will gain and half will 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 has sent details of the worst hit practices to all area teams. They should have already made contact with practices to discuss the additional support available.
All GMS practices should now consider how these changes will 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, e.g. reviewing service provision and, if appropriate, looking at staffing levels, service provision and the possibility of collaboration with other practices.
If you have concerns that your practice's capacity to continue delivering services to patients will be significantly affected by this process, if you have not done so already, you should request to meet with your area team and CCG officials and contact your LMC for advice and support during local discussions.
GPC 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 Member of Parliament and patients. LMCs should be able to assist with the coordination of correspondence on behalf of affected practices.
Read more about the process for phasing out the MPIG