Managing your GP surgery’s premises: Doing nothing is not an option

Sometimes decisions around premises can feel full of risk, and achieving consensus among a diverse group of partners can be challenging. However, there are times when doing nothing can cause more problems than it solves. Here are eight essential dos.

Do

1. Make changes to your registered title

Whether you have a freehold or leasehold interest failure to update the partner names on the legal title can cause significant delays in any future dealings. This is especially the case when partners pass away or move out of the area or even out of the country and can be difficult to track down. Updating your partnership agreement is good but you still need to change the title at the Land Registry.

2. Formalise your occupancy

Not having a lease can feel as though it is the least risky option as you are not tied into the premises in the same way as you are with a lease. However, without a lease you have an uncertain tenancy where it is impossible to commit to investing long term in the premises which will ultimately affect the long term viability of the practice.

3. Respond to your commissioner in a timely manner following rent review determination letter

Under the new Premises Cost Directions you now have 12 weeks to confirm if you want to challenge the review. Failure to do so could potentially put you in breach of your lease rent review provisions and create a discrepancy between your lease rent and reimbursement.

4. Consider the new development

There is a lot to think about with the development of a new health centre and a lot of risks to consider. One risk that often is not thought about is the risk of not proceeding. If you don’t go ahead, how long will your existing buildings be fit for purpose and what are the alternatives for replacement or refurbishment?

5. Consider retired partners as landlord – part 1

If you continue to own the premises after you have retired together with others (whether they remain in the practice partnership or, like you have retired) what now governs your relationship and how will you make decisions about the property? You are no longer governed by your practice partnership agreement and without a new agreement in place disputes can easily occur.

6. Consider retired partners as landlord – part 2

There is no requirement to have a lease in place whilst at least one of the property owners remain in practice; however, it is significantly easier to agree the terms of the lease whilst there is a good degree of overlap between the two roles.

7. Take action on a section 25 notice

If you receive a section 25 notice from your landlord, please take advice as soon as possible.

8. Keep your property in repair

The Premises Cost Directions have minimum standards of repair and failure to keep the surgery in the repair required could have a detrimental effect on your reimbursement and long-term practice stability.

Comment

While taking these steps may involve certain costs, both legal and otherwise, and may introduce some level of risk, the alternative can often be far more costly and have long-term repercussions for the practice as a whole.

If you would like to discuss any of the issues raised here, please contact Jennifer Lewis.

This article was originally published on Mills & Reeve’s website. Read the full version here.

PCC provides expert advice and support on primary care matters including premises, for example we can write project initiation documents for developments, visit www.pcc-cic.org.uk or contact enquiries@pcc-cic.org.uk to find out more. PCC does not provide legal advice.