GPs who fail to update their partnership deed could see their practice closed down
By Colin Cooper, 26 November 2012
GP practices with an out-of-date partnership agreement could be closed down immediately if one partner decides to dissolve the partnership, according to a leading healthcare lawyer.
Lynne Abbess, of Hempsons, has warned that practices need to review their legal standing as new regulations, financial pressures, and the NHS reforms, threaten to destabilise many partnerships.
In an exclusive video interview with medeconomics.co.uk, Ms Abbess said that the lack of an up-to-date partnership agreement could be ‘catastrophic’ for practices.
‘If you do not have an up to date partnership deed, your business can be dissolved at any stage.
‘The effect of a dissolution can be absolutely catastrophic for a practice because all it needs is for any one partner to serve notice on the other partners and it takes effect immediately.
‘There is no warning, no reasons need to be given, and the effect of a dissolution is that the business is wound up immediately.
‘So that means in theory that all the staff have to be made redundant, all the premises have to be disposed of, and, most importantly, the PCT contract automatically comes to an end.’
In the video interview, Ms Abbess explains how to maintain an up-to-date partnership agreement, how to safely bring in new partners, and achieving the best mix of salaried GPs and partners in a practice.
Lynne Abbess is head of the practitioner team at specialist healthcare solicitors Hempsons, and our resident legal expert at medeconomics.co.uk. You can seek outline legal advice from Lynne by emailing questions to email@example.com or calling 020 7839 0278.
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