GPC demands 4% practice income rise

The GPC has demanded a 4% rise in GMS income for 2009/10 to combat soaring expenses and inflation.

GP leaders want the Doctors' and Dentists' Review Body (DDRB) to approve a 3.5% rise to income streams covered by the distribution formula agreed last month with NHS Employers, and believe the additional 0.5% will come from increases to other funding streams.

In supplementary evidence to the DDRB, made public in what it called an ‘unprecedented’ move, the GPC forecast that net income for GMS practices would be 10.6% lower in 2008/9 than it was in 2005/6.

The evidence points to rising staff costs as a key factor in driving down practice profits. ‘These accounted for 47% of expenses in 1999/2000, and now (2006/7) represent 58% of total expenses,’ the evidence document says.

The staff component of expenses has been rising by 8.5% a year since 1999/2000, and overall expenses by 6% since 1994/5, it adds.

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