GP practices should seek independent legal advice before agreeing to any debt settlements with NHS Property Services (NHSPS), the BMA has said.
Practices around the country are currently being ‘pushed’ by NHSPS for debt settlements related to service charges and are being given ‘arbitrary deadlines’, according to the union.
Service charge costs have been a significant issue for many GP practices since 2013, when NHS Property Services (NHSPS) was created.
Now, in new advice shared by Essex LMC, the BMA encouraged practices to seek independent legal advice ‘before agreeing to anything’ related to the debt settlements.
It also reminded practices that they should only make payments for current charges if they agree with their legal basis and agree that they are ‘accurate’.
The BMA guidance said: ‘BMA have always advised practices to engage constructively with NHSPS. Practices should seek their own advice on their position and put their particular case to NHSPS on what they believe is or is not recoverable by way of service charges.
‘Amounts in dispute should be raised with NHSPS. NHSPS should then respond and confirm the basis on which each item is being charged to each practice specifically.
‘NHSPS should also demonstrate that these services have actually been provided and, in the absence of any contrasting terms in the tenancy, to a required standard and at a reasonable cost.’
The BMA also added that practices may enter into discussions ‘in good faith’ with NHSPS in an attempt to find ‘mutually agreeable terms’ of occupancy going forward.
It said: ‘You should be mindful that any agreements do not jeopardise your existing legal rights and do not put future sustainability of the practices at risk. As in every case, BMA encourages you to seek independent legal advice before agreeing to anything.’
NHSPS told our sister publication Pulse that its ‘preference’ is to reach agreements ‘through open conversation’.
A spokesperson said: ‘NHSPS is keen to progress discussions with the GP community to resolve outstanding charges. Our preference is to reach agreements with practices through open conversation.
‘We welcome the LMC and BMA’s call for practices to engage constructively with us and remain committed to working collaboratively with practices. It is in both parties’ interest to resolve any outstanding issues in a fair and transparent way.’
The BMA has previously received ‘hundreds of reports’ from partners who believed they were being charged ‘unjustly’, with some practices becoming ‘unviable’.
In 2023, legal action led by the BMA resulted in large reductions in service charges for five GP practices, ranging from £25,000 to more than £400,000.
Earlier this month, NHS Confed argued that the Government should consider ‘abolishing’ NHSPS and writing off GP debt.
A version of this article was first published by our sister title Pulse
