DoH to consider redistributing MPIG funding

Practices’ MPIG correction factor income could be redistributed through the global sum formula after the next round of GMS contract negotiations.

NHS Employers’ negotiator Philip Grant said the effects had not been fully modelled, but predicted this would happen in future negotiations following improvements to the global sum formula (GP, 23 February).

NHS Employers has submitted a report to the DoH setting out the historical reasons for the MPIG, its effect on distribution and equity of funding, and options for changing it.

But he said the DoH, NHS Employers and the GPC saw the MPIG as a barrier to fair distribution of general practice resources.

Under the current system, more than 90 per cent of GMS practices receive correction factor top-ups to core pay to prevent them earning less than they did under the Red Book contract.

The average practice receives around 25 per cent of its core pay from a correction factor.

Mr Grant said: ‘The MPIG is preventing equitable distribution of the resource envelope.

‘If you took the global sum envelope and the correction factor envelope and the DoH agreed to redistribute these funds on the basis of the revised formula, there would be some practices that would lose and others that would win.’

He admitted some practices would face substantial losses, and said negotiators would have to discuss whether additional pay was appropriate to prevent them becoming financially unviable.

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