Ask The Experts - Extending Surgery

Published:23/09/2011

Question

I own surgery premises with cramped conditions. I have planning permission to extend, which would cost approximately £70,000. As PCTs are cash-strapped, I have little hope of getting an improvement grant. However, I am happy to borrow the money. After the extension is built, will I automatically get higher rent or do I have to seek permission beforehand? Can a PCT refuse any rent assessments altogether?

Answer

The rules relating to rent reimbursement appear in Part 5 of the NHS (GMS-Premises Costs) Directions 2004. Paragraph 41 notes amongst other things that, where you incur borrowing costs as a result of purchasing a building or significantly refurbishing Practice premises but have not elected to receive any payments from the PCT, the PCT must consider an application (have regard amongst other matters to the budgetary targets it has set) and make Notional Rent payments.

There are two key elements here in that first of all the PCT will have to be satisfied that the additional refurbished accommodation is essential for you in order to carry out your proper GMS services. If they do approve this, then they would normally reimburse the additional Notional Rent although they always have the ability to claim that it does not fall within their budget. If they claim the latter, but accept that it is required for GMS purposes, then there would be little excuse for them not including the additional Notional Rent in budgets for future years.