Overspending consortia to face financial penalties

The NHS Commissioning Board will have the power to adjust GP consortia funding allocations to reflect previous overspends or underspends, the DoH has said.

It suggests that poorly performing consortia will be expected to claw back debts, while consortia that come in under budget will be rewarded.

In its response to the health White Paper, the DoH said the NHS Commissioning Board’s funding allocations would potentially operate in a similar way to how PCT allocations currently operate.

It said that by allowing the NHS Commissioning Board to adjust consortia funding based on previous overspends or underspends will ensure there are incentives for good financial management.

The DoH also outlined that GP consortia will be under a ‘clear duty’ to ensure that their expenditure does not exceed the commissioning budgets allotted to them.

The accountable officer for each consortium will be accountable to the NHS Commissioning Board for achieving financial balance, it said.

It also revealed that the DoH would set the ‘precise form and content’ of the accounting information that the NHS Commissioning Board must require from GP consortia.

The DoH said: ‘This will ensure consistency in accounting arrangements and requirements as they flow between the department, the NHS Commissioning Board and individual consortia.’

Other news from the DoH's response to the White Paper consultation:

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