The National Health Service (Fund-holding Practices) Amendment Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the National Health Service (Fund-holding Practices) Regulations 1996, which contain provisions relating to the recognition and operation of fund-holding practices.

As from 1st April 1999, the three existing types of fund-holding practice, standard fund-holding practices, community fund-holding practices and GP commissioning groups will be replaced by a single type of fund-holding practice to which the amended regulations will apply.

Part II of these Regulations makes changes to the principal Regulations which come into force before the three types of practice cease to exist including—

Regulation 3, amending regulation 3 of the principal Regulations (application for recognition as a fund-holding practice) and regulation 8, which revokes regulation 10 and 10A of the principal Regulations, prevent practices changing between the three types of fund-holding practice between the coming into force of these Regulations and the types of practice ceasing to exist on 1st April 1999.

Regulation 7 amends regulation 18 of the principal Regulations so that the date for determination of the allotted sum becomes 30th April. Regulation 5 makes a consequential amendment.

Part III sets out the new rules which will apply to the single type of fund-holding practice from 1st April 1999.

Regulation 13 amends regulation 9 of the principal Regulations so that the membership of a fund-holding practice shall not change, except by death or retirement of a member.

Regulation 14 amends regulation 11 of the principal Regulations to permit renunciation of recognition other than at the end of a financial year.

Regulation 17 amends regulation 20 so that the only goods and services which may be bought are those listed in a new Schedule 3 to the principal Regulations (inserted by regulation 27 of these Regulations). Goods and services are only to be purchased from health service bodies.

Regulation 19 amends regulation 23 of the principal Regulations so that management expenses may not be spent on purchasing computers or on paying members of the practice.

Regulation 21 inserts a new regulation 24A limiting the duration of new contracts entered into by fund-holding practices to 6 months.

Regulation 22 amends regulation 25 of the principal Regulations to amend the list of items on which savings from the allotted sum may be spent, requiring that Health Authority consent is to be obtained before any savings are spent and setting the maximum amount of savings which may be spent in one financial year.

Regulation 25 amends Schedule 1 to the principal Regulations (conditions for obtaining recognition) and regulation 26 amends Schedule 2 (conditions for continuing recognition) so that the number of patients on a practice’s list do not affect recognition. New conditions are inserted in Schedule 2 making it a condition of continued recognition that there be no changes in the membership of a fund-holding practice (other than because of death or retirement) and that the fund-holding account not become overdrawn.

Regulations 2 and 8 of the principal Regulations are revoked by way of consequential amendments and regulations 19 and 22 are revoked so that the allotted sum shall not be paid to the Health Authority for drugs, medicines and listed appliances nor spent on staff costs, except as permitted by regulations 23 and 25 of the principal Regulations.

Regulation 29 makes saving provisions in respect of regulations 9 (withdrawal or death of a member of a fund-holding practice), 25 (savings from the allotted sum) and 26 (recovery of misapplied sums) of the principal Regulations.

The other regulations make consequential amendments removing references to the three types of fund-holding practice and to the revoked regulations.

Part IV set out the steps which fund-holding practices will have to follow to retain recognition beyond 1st April 1999.

Regulation 30 makes arrangements for practices in respect of which recognition has been granted as one of the three types of fund-holding practice but not taken effect before 1st April 1999.

Regulations 31 and 32 require standard and community fund-holding practices to notify their health authorities that they wish to continue to be recognised as fund-holding practices and require GP commissioning groups to apply for a change of status by 3rd March. Failing such notice or application recognition will be removed, subject to regulation 32 which also sets out the procedure for making representations against such a decision to remove recognition.

Regulation 33 provides that the consequences of removal of recognition in such circumstances will be the same as where a practice has renounced recognition rather than as provided by regulation 17 of the principal Regulations.