Answer:
Under the NHS (GMS-Premises Costs) Directions 2004 paragraph 39, the PCT must continue Borrowing Costs until alternative arrangements are entered into by the GP contractor, e.g. where a contractor changes lender or renegotiates lower loan costs. In these circumstances, the PCT will recalculate using the appropriate prescribed percentage in force at the time. This relates to the new Borrowing Costs that took over Cost Rent but, even in the old Red Book or SFA, paragraph 51.51 was amended in September 2003, so the paragraph 51.51 relating to Cost Rent payments noted “from the 18 th September 2003 where a practitioner changes lender and/or renegotiates lower loan costs, the Cost Rent reimbursement level shall be recalculated using the appropriate prescribed percentage in force at the time the changed loan arrangements came into effect”. The clause goes on to note that “from 18 th September 2003 where a practitioner has repaid their loan, the Cost Rent reimbursement shall be recalculated using the variable prescribed percentage”.
Having regard to the above, it thus strikes me that the PCT could certainly look at renegotiating the situation. The two existing partners would certainly have the right to continue as before but I believe that the new incoming partners would have to look to arrange a new Cost of Borrowing having regard to the rates prevalent at the time.
I should note that I do know there is a lot of confusion in relation to the above, and I have spoken to other doctors and PCTs that have taken differing views. I am fairly sure that there will be some that just carry on reimbursement at the old level, whereas others I know are trying to use it as an excuse to completely renegotiate rent.
|
