Why accountants are integral to the NHS

GP practices are increasingly turning to their accountants for help in streamlining and improving their financial processes, and in future-proofing the organisation. While the primary focus remains patient care, the behind-the-scenes financial operations are equally critical, as they ensure that GP practices can continue to operate as efficiently as possible in this very challenging economic climate.

What issues are GP practices currently facing?

Staff recruitment and retention
Like any other business, GP surgeries have been affected by staff shortages. Finding the right candidates is very challenging and potential candidates have an array of options to choose from, so it’s important to stand out from competition. Every job within a GP practice has been affected by this, meaning that the staff that stay within the practice are stretched to the limits, which leads to highly-skilled individuals leaving or taking an early retirement.

Salary uncertainty
Towards the end of 2023, the Government announced that all salaried GP staff in England, including nurses, would receive a 6% pay uplift to cover inflation. However, as much as the British Medical Association and Royal College of Nursing encouraged GP Practices to use additional Global Sum uplift to invest in their staff, and finance the 6% pay rises from the uplift, some practices simply cannot afford to do so.

The uncertainty around the structure of funding for the upcoming year, including last minute contract changes, are causing undue stress for many GP practices.

Rising overheads
With a 400% rise in energy bills last year and inflation rising, overheads have added a significant amount of pressure. While there is no magic solution, our team can provide expert advice and support to help guide GP practices through future uncertainties.

Difficulties recruiting new partners
In the current climate, there is no real incentive for a GP to become a practice partner. Not only are they facing the challenge of working at an understaffed practice, but the funding that helped prospective partners to buy into the practice – ‘New to Partnership’ scheme, ceased on 31^st March 2023.

In addition, dealing with administrative burden of being a GP Partner, might just be enough for GPs to turn into locuming, so they can enjoy the flexibility of deciding when, where and how much they want to work.

How do accountants help?
Whilst accountants cannot take away these uncertainties, they can give GP practices the tools and guidance to manage and navigate them as effectively as possible. At Monahans we utilise our expertise to ensure that our clients have the ability to adapt to the ever-changing healthcare landscape.

This may involve the use of management reports – which allow practices to monitor real time information that will inform their decision-making, or help with financial modelling to determine exactly how contract changes might impact the practice. Whilst there are online calculators available, we can help to decipher how elements such as partner profit shares will be affected, allowing organisations to plan accordingly.

We provide a range of services that will help practice managers to manage budgets, track expenses, and devise financial plans that enable them to operate efficiently within their means. This ensures that resources are allocated effectively to prevent financial strain and enables the practice to deliver optimal patient care.

As a result of the current landscape, Monahans is experiencing an increasing number of GP practices turning to them for assistance across all financial elements of the business. This includes bookkeeping, managing tax liabilities and pension contributions, as well as succession planning.

Change is inevitable in the current climate and it’s essential that GP practices continue to offer an efficient service during these testing times without negatively impacting patient care. We support and guide clients through the whole process, helping them to create a coherent plan that keeps the practice’s specific goals in mind whilst relieving some of the weight sitting on their shoulders.

Monahans is supporting GP practices to create the best business strategies for the benefit of partners and patients. For more information about how we can help you, please get in touch.

Iwona Silverio