The National Health Service (Fund-holding Amendment Regulations 1998 Practices)

Savings

11.—(1) Regulation 25 of the principal Regulations (savings from the allottedsum) is amended as provided in paragraphs (2) to (4) of this regulation.

(2) In paragraphs (2) and (2A), for “Subject to paragraph (3),” substitute “Subject to paragraphs (3), (3B) and (3C),”.

(3) In paragraph (3)(1)—

(a) at the beginning insert “Subject to paragraphs (3B) and (3C),”;

(b) for sub-paragraph (a) substitute—

“(a) that the proposed expenditure would—

(i) provide a benefit for the patients of members of the practice, and

(ii) provide that benefit in the most reasonably economic way having regard to alternative methods of providing the same benefit, and

(iii) represent value for money; and”; and

(c) after sub-paragraph (b) insert—

“; and

(c) that where the proposed expenditure is under sub-paragraph (a) or (c) of paragraph (2) and the purchase of the material or equipment, or the expenditure on premises (as the case may be), is intended to provide a benefit to the patients of the members of the practice, it could not reasonably be procured for them in an equally or a more economic way under regulation 20.”.

(4) After paragraph (3A) insert—

“(3B) The Health Authority shall not, in any one financial year, consent under paragraph (2) to the application for any of the purposes specified in paragraph (2)(a) to (f) or (2A) of a total of more than £90,000 of savings (irrespective of whether more than one consent has been sought, and whenever any such consent was sought).

(3C) The members of a fund-holding practice shall not apply savings of any amount greater than £90,000 in any one financial year for the purposes specified in paragraph (2)(a) to (f) or paragraph (2A).”.

(5) The amendments made by paragraph (3)(a) and (4) of this regulation do not affect any consent given before this regulation came into force, or the application of savings for any of the purposes specified in paragraph (2)(a) to (f) or (2A) of the principal Regulations pursuant to a consent given before this regulation came into force; and in such cases—

(a) regulation 25 of the principal Regulations shall continue to apply in relation to that consent, or to the application of those savings, as if the amendments referred to above had not been made; and

(b) the application of those savings shall not be taken into account under regulation 25(3C) of the principal Regulations.

(1)

Paragraph (3) was substituted by S.I. 1997/1678.