Request a Quote

Please complete the form below, we’d love to hear from you!

Developing a federated model of General Practice: Quick financial tips

As promised in our last blog, this edition focuses solely on two questions we are commonly asked: 

1. Does the company need to be VAT registered?

2. How do we get the finances moving in order to start to demonstrate to procurement teams we are a viable operation?

With regard to VAT the short answer is no, the company does not need to be registered.

To further explain…..

If a registered healthcare professional performs services, the primary purpose of which is the protection, maintenance or restoration of the health of the person concerned, these services are exempt from VAT.

The expectation is that the provider company will be tendering for healthcare contracts and as such the need for VAT registration is removed.

When it comes to getting your finances moving there are a number of ideas we can share. For those who are currently working with us we have been able to introduce a benefits package early in the process where the practices are making savings through being part of the combined buying power of the organisation. This includes significant savings on insurance, utilities, consumables, equipment, near patient testing and much more. This is something we introduce as soon as the federation set up gets underway and invariably we have been able to save the practices the cost of their initial investment and often much more.

As part of that process we have also spotted a way to avoid seeing your initial investment tied up in shares - there really is no need for this, and it will leave your money free for use by the company.

As a legal entity you will now be an attractive partner for other local organisations, not least the foundation trust/hospital trust and community services, who might be willing to enter in to a prime or principle contract with you (these are new contract model which allow for subcontracting - more about that in a future issue).  Their interest will hinge on your ability to demonstrate you can deliver high quality, consistently well and across all member practices.  Nobody wants to contract variation, meaning you will need to find some small projects that allow you to demonstrate you can achieve implementation with minimal variation, and certainly none that cannot be explained. This is another area where we have examples from other federations that work with us of how you can easily achieve this.

The CCG may also be interested in contracting with you for items such as the local education meetings.  While this is unlikely to generate you income it will generate you turnover through your accounts and allow you to demonstrate you can deliver effectively.

There are other options you can use to get the finances moving; however, those above should give you more than enough to get you started.

In our next issue, we will look at the options you have when it comes to forming a company; do you go for profit or not for profit? Are there any advantages to either model?  

For more information on how we can support you in forming a federation, or to arrange to speak to one of our federation experts please contact or call 0191 653 1022.

Next Event / Workshop

There are no upcoming events.

  • BW Medical Accountants have a good working knowledge of General Practice and are keenly aware of the challenges Practices face within the changing environment of the NHS.  We have been very impressed by the way BW Medical continue to deliver the range of services they provide from Accounts to Tax and NHS Pension advice. 

    We have found Practice consultation and engagement from BW Medical specifically helpful to shape the future of the Practice.

    GP Partner
    GP Practice, Newcastle
  • We had no hesitation in moving to BW Medical Accountants.  For any business your accountant is integral, and for us one of the most important factors to this relationship is to have a personal and trusting approach, which BW have undoubtedly achieved. 

    The service we receive and the interest they show in our practice assures us that they have a genuine interest in us and commitment to us.  More importantly they are always helpful and polite to answer even the dumbest of questions!  They give us confidence and reassurance knowing that they are always very up-to-date with all the numerous changes within general practice and we would have no hesitation in recommending them to other practices seeking a professional and personal accountancy service.

    Jackie Rotherham, Practice Manager
    The James Street Family Practice, Lincolnshire
  • We changed to BW Medical Accountants and I would say we have just had the most transparent and understandable end of year meeting and the best planning advice I have ever had in 16 years of practice.

    GP Partner

Newsletter Signup