Consortia funding will mean large groups are 'overfunded'

The £35 per head of registered population to be allocated to GP consortia for running costs may mean larger groups are 'overfunded', MPs have said.

The House of Commons Public Accounts Committee (PAC) raised concerns that the DoH has not made clear how it will deal with failing GP consortia.

The PAC asked the DoH to ensure that the level of funding for consortia of different sizes is ‘adequate but not generous’ and does not introduce ‘perverse incentives’.

The report said: ‘There is a risk that the funding of £35 per head for the running costs of GP consortia may allow small consortia the scope to be inefficient whilst larger consortia are over funded for their running costs.

The committee also raised concerns that the DoH has not yet devised a framework to deal with failure in the NHS, either on the commissioning or provider side.

Margaret Hodge, chairwoman of the PAC, said: ‘The health reforms are still at an early stage and key questions have yet to be addressed.

'The Department must have effective systems in place to deal with failure so that whatever happens, the interests of both patients and taxpayers are protected.’

Health secretary Andrew Lansley said: 'We will consider the useful recommendations set out in this report alongside the suggestions we hear as we listen, reflect and improve on proposals.'

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