It will enable PCTs to aggregate and compare the results of practices with similar patient populations for the first time.
This will include quality framework performance as well as other measures including patient satisfaction and generic prescribing in a traffic light format.
However, GPs and practice managers fear that the data could be flawed without detail about £-per-patient funding.
The tool is available to PCTs now and will be published by the NHS Information Centre for patient access in January.
Speaking at the National Association of Primary Care (NAPC) annual conference in Birmingham last week, Jill Matthews, the DoH's national implementation director for primary care and community services, admitted that data quality might be an issue but said that it should only suggest questions to managers not dictate policy.
Ms Matthews added: ‘If you have a practice manager making the a strong case that their practice is different, you can ask this tool to find 40 practices with similar demographics.'
She said that practices could liaise, so the worst performing could learn from the best.
Practice manager Ray Guy, chairman of the North Liverpool practice-based commissioning consortium, said: ‘ Will this information take into account the variation of funding in practices?'
He added that practices received between £50 - £200 per patient.
Mr Guy added: ‘My concern is that some PCTs might use this as a stick to beat GPs with.'