Partnership Agreements In A Modern GP Practice

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Partnership AgreementsIn A Modern GP Practice

• Daphne Robertson
• d.robertson_at_drsolicitors.com
• tel [phone]

GP Forum, Winchester 30 March 2006
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Summary of presentation

• What relationships does it govern?
• Why have one?
• Key features
• Types of Partners
• Is your Agreement binding?
• Surgery Premises
• How do I get an Agreement in place?

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Overview of key contractual relationships
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Why have one?If no partnership agreement

• Partnership at will under Partnership Act 1890
• Limitations include
• Share profits equally
• No Mutual Assessment Period for Incoming Partner
• Termination without notice (inconsistent with
  notice under PCO and PMS contract)
• No restrictive covenants
• No authorised leave
• No power to expel

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Why have one?Key Features

• Insurance Policy
• Provides clarity on difficult issues
• Income and expenditure
• Authorised leave
• Decision-making processes
• Obligations viz. service performance
• Definition of partnership capital
• Clarity for incoming and outgoing partners
• Business stability

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Types of Partner

• Legal definition
• Equity Partner
• Salaried Partner
• Fixed Share Partner
• Percentage Share Partner
• Consultant Partner
• Separate non GP agreement
• Separate clinical non-clinical responsibilities
• Buying into surgery premises

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Is Your Agreement Binding?

• Agreement invalid if not
• Signed as a Deed
• Dated/completed
• Updated to include new Partner
• Observed in principle
• Points of Interpretation
• Legislative and NHS regulatory changes
• Minor transgressions
• Omissions
• Practice accounts

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Surgery Premises

• Declaration of Trust
• What does it cover?
• Valuation
• Departures
• Decision-making
• Shares
• Property costs
• Relationship between property owners and
  Partnership

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Getting an Agreement in place

• Questionnaire
• Draft Agreement
• Daphne Robertson
• Solicitor
• Tel [phone]
• d.robertson_at_drsolicitors.com