3 February 2014

Analysis of PMS Contracts

Review of PMS contracts
NHS England, February 2014
  • The aims of this review is to establish how best to apply the principles of equitable funding to PMS practices and identify how to get best value from investment in quality improvement and innovation.
  • The review was based on data collated by area teams from individual PMS contracts as at 1 April 2013
  • Results include:
    • PMS expenditure in excess of GMS equivalent: £325 million, or £13.52 per weighted patient.
    • £67 million linked to defined enhanced services or KPIs. Remaining £258 million may be associated with enhanced services or populations with special needs, but is not defined.
    • Once the MPIG is fully phased out in GMS, total PMS premium will reduce by around £90 million to £235 million, or an average of £9.80 per weighted patient. (Note: does not mean PMS practices necessarily earn less, but a greater proportion of their earnings will be equivalent to what they would get under GMS).
    • No relationship between current PMS expenditure and deprivation. Modelling shows a random distribution of PMS premium against the Index of Multiple Deprivation (IMD) scores.
  • See covering letter and next steps here.
  • See NHS England press release here.