Indemnity and the 2017-18 Contract Changes
- GMS and PMS contracts (global sum and PMS baseline) were uplifted following the 2016/17 contract negotiations by the so called “elements of the deal”. Within this was a contribution towards general increasing indemnity costs rather than a specific payment for the average annual increase.
- In the 2017/18 contract negotiations, £30 million is to be paid on a per patient (raw) basis to reflect the average increase in indemnity costs using figures received from the indemnity organisations. This payment is separate to global sum/PMS baseline.
- Payment of 51.6p/patient was made in March 2017 for the 2016/17 increase in costs, based on list size at December 2016. A further payment will be made in March 2018 for the 2017/18 year.
- All GPs providing GMS/PMS services under the contract should receive a proportion of this funding. This includes partners, salaried doctors and locums. It does not cover indemnity costs for OOH sessions.
- The SFE makes it clear that the board (CCG) has a duty to ensure that the contractor (practice) complies with this.
- If MDO fees are paid by the practice then this is simply handled in the normal accounting process as income and expenditure
- If salaried Doctors pay for their own indemnity costs then they too should receive some of this funding. However, there is no formula for determining the amount to be paid as individual doctors circumstances and costs are so variable. Our estimation is that an amount of between £2.50 and £3.00 per session worked being paid to the salaried Dr who pays their own indemnity is likely to be appropriate.
- Locum Drs should also be able to access some of this funding and should therefore reflect increasing indemnity insurance in their costs.
- It is important to understand that this payment is likely to cover some of the costs of the increase in indemnity and not the whole of an individual’s increase in costs. The funding is paid into the practice via the contract and it is up to the practice to negotiate the application of the funding taking into consideration the above points.
This has been agreed with GPC, NHSE and HMRC.