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GP funding formula may need to be reviewed

13 March 2015

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The General Practitioners Committee (GPC) has questioned whether there needs to be a review of the GP funding formula to support practices in deprived areas.

This comes after a government report claimed that GPs in disadvantaged areas take home a larger proportion of practice income after expenses.

The HSCIC carried out an analysis, titled theGP Earnings and Expenses by Deprivation Score, England 2011-12 and 2012-13,to provide evidence on the potential link between deprivation and the ratio between GPs’ expenses and earnings to feed “any reviews of the Carr-Hill funding formula”.

The analysis, covering a two-year period from 1 April 2011 to 31 March 2013, found that GPs in more deprived areas seemed to be taking home a larger proportion of their income before tax after practice expenses.

The GPC said that the report ‘raises questions’ about the effectiveness of reviewing the Carr-Hill formula.