PCT debt will be 'fully resolved' before consortia form

The DoH has confirmed that PCT debts will be 'fully resolved' by the end of 2012/13, suggesting GP consortia will not inherit deficits.

Dr Vautrey: 'It would be unacceptable if the DoH top-sliced funding allocations that meant those areas without debt suddenly find themselves with debt'

The statement came after a GP with links to the government said the DoH could write off PCT debts to give consortia a good start.

Last month, GP reported that a deal was being worked through to ensure GPs do not inherit the full weight of PCT debts.

The DoH statement confirms PCTs are unlikely to pass on any of their debt to GP consortia. A spokesman said: 'The department is working with the SHAs to address circumstances where PCTs owe money, with the expectation that any debt will be fully resolved by the end of 2012/13.' He said the issue of PCT debt will be covered in further detail in the NHS operating framework for 2011/12, due later this month.

Meanwhile, a GP with links to the government said it was increasingly likely consortia would not face debts when they set up in shadow form.

However, if they accumulate debts in their shadow year they will be liable to take these forward when they become statutory bodies, the GP added. He said if PCT debt was simply passed on to consortia, they would struggle to function properly.

GPC deputy chairman Dr Richard Vautrey said he would welcome detail about how the DoH would write off PCT debt.

'Saying that is one thing, but delivering it without new money will be another,' he said.

'It would be unacceptable if the DoH top-sliced funding allocations that meant those areas without debt suddenly find themselves with debt.'

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