Statutory Instrument 1999 No. 261

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

---

© Crown Copyright 1999

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The National Health Service (Fund-holding Practices) Amendment Regulations 1999 , ISBN 0 11 080473 2. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

(a) omit "Subject to regulation 10A(2) and (6),"[4]; and

(b) after "pre-paid letter" insert "or by fax".

Amendment of regulation 3 of the principal Regulations
     3. In regulation 3 of the principal Regulations (application for recognition as a fund-holding practice), paragraph (4) is omitted.

Amendment of regulation 5 of the principal Regulations
     4. In regulation 5 of the principal Regulations (grant of recognition as a fund-holding practice), in paragraph (2)(b)[5], for "1st April following the grant of recognition", substitute "whichever date, of 1st April 2001, 1st April 2003, and so on, most closely follows the date on which recognition was granted".

Amendment of regulation 13 of the principal Regulations
     5. In regulation 13 of the principal Regulations (grounds for removal of recognition), in paragraph (1) - 

(a) after "the next 1st April" insert "or, if 1st April has passed, for the current financial year,"; and

(b) for "that 1st April" substitute "midnight on 31st March immediately preceding that 1st April, or, if that date has passed, the last day of the month in which that notice is sent".

Amendment of regulation 14 of the principal Regulations
     6. In regulation 14 of the principal Regulations (procedure for removal of recognition), in paragraph (5)(b) - 

(a) for "1st April" substitute "midnight on 31st March"; and

(b) after "following the sending of the notice" insert "or (as the case may be) the last day of the month in which the notice referred to in regulation 18(3) was sent".

Amendment of regulation 18 of the principal Regulations
     7. In regulation 18 (determination of allotted sum) - 

(a) in paragraph (1), omit "Subject to regulation 10A,"[6]; and

(b) in paragraph (2), for "28th February" substitute "30th April".

Revocations
     8. Regulations 10 and 10A[7] of the principal Regulations are hereby revoked.

(a) in paragraph (2) omit the definitions of "community fund-holding practice", "GP commissioning group"[8] and "standard fund-holding practice"; and

(b) in paragraph (5), for "19, 20, 22, 23 and 24" substitute "20, 23, 24 and 24A".

Amendment of regulation 3 of the principal Regulations
     10. In regulation 3 of the principal Regulations (application for recognition as a fund-holding practice) - 

(a) omit paragraphs (2)[9] and (6)(a); and

(b) in paragraph (9)[10], for the words from "either-" to the end of sub-paragraph (b) substitute "that the practice will not, in the opinion of the Health Authority, be capable of managing an allotted sum effectively and efficiently".

Amendment of regulation 5 of the principal Regulations
     11.  - (1) Regulation 5 of the principal Regulations (grant of recognition as a fund-holding practice) is amended as follows.

    (2) In paragraph (1), for "as a standard fund-holding practice, a community fund-holding practice or a GP commissioning group (as the case may be)", substitute "as a fund-holding practice".

    (3) For paragraph (2)[11], substitute - 

    " (2) Subject to paragraph (3), recognition which has been granted - 


(a) on or after 31st July 1997 but before 1st April 2001 shall take effect from 1st April 2001; and

(b) on or after April 2001 shall take effect from whichever date, of 1st April 2005, 1st April 2009, and so on, most closely follows the date on which recognition was granted.".

Amendment of regulation 7 of the principal Regulations
     12. In regulation 7 of the principal Regulations (conditions for continuing recognition) - 

(a) in paragraph (1), for "of a standard fund-holding practice or community fund-holding practice or GP commissioning group (as the case may be)"[12] substitute "of a fund-holding practice"; and

(b) omit paragraph (2)[13].

Amendment of regulation 9 of the principal Regulations
     13. In regulation 9 of the principal Regulations (withdrawal or death of a member of a fund-holding practice) - 

(a) in paragraph (1), omit "in relation to the kind of practice in question"; and

(b) omit paragraphs (2) to (6).

Amendment of regulation 11 of the principal Regulations
     14. In regulation 11 of the principal Regulations (renunciation of recognition) - 

(a) in paragraph (1), for "31st March following the sending of the notice" substitute "the last day of the month in which the notice is sent"; and

(b) in paragraph (2), omit sub-paragraph (b) and insert "and" at the end of sub-paragraph (a).

Amendment of regulation 12 of the principal Regulations
     15. In regulation 12 of the principal Regulations (consequences of renunciation of recognition) - 

(a) in paragraph (1), for "the 31st March specified in the notice referred to in regulation 11" substitute "the last day of the month in which the notice referred to in regulation 11 is sent"; and

(b) in paragraph (3), for "ending on that date", substitute "in which that date falls".

Amendment of regulation 13 of the principal Regulations
     16. In regulation 13 of the principal Regulations (grounds for removal of recognition), in paragraph (2), for the words "a community fund-holding practice or a standard fund-holding practice or a GP commissioning group (as the case may be)"[14] substitute "a fund-holding practice".

Amendment of regulation 20 of the principal Regulations
     17.  - (1) Regulation 20 of the principal Regulations (purchase of goods and services) is amended as follows.

    (2) Omit paragraphs (A1)[15], (3) to (6) and (11)(a) and (b).

    (3) In paragraph (1), for "Subject to paragraphs (3) to (11)" substitute "Subject to paragraphs (7) to (11) and to regulation 24A".

    (4) For paragraph (2) substitute - 

    " (2) The goods and services referred to in paragraph (1) are the goods and services specified in the list set out in Schedule 3 to these Regulations.".

    (5) In paragraph (2A)[16], omit "Subject to paragraph (4)".

    (6) After paragraph (2A), insert - 

    " (2B) Except where goods and services are purchased pursuant to an agreement entered into before 1st April 1999, fund-holding practices shall purchase goods and services only from providers which are health service bodies.".

Amendment of regulation 21 of the principal Regulations
     18. In regulation 21 of the principal Regulations (limit on provision of goods and services), omit paragraph (1)[17].

Amendment of regulation 23 of the principal Regulations
     19.  - (1) Regulation 23 of the principal Regulations (payment for management expenses) is amended as follows.

    (2) In paragraph (1), at the beginning insert "Subject to regulation 24A,".

    (3) In paragraph (3), omit "either sub-paragraph (7)(d) for the purpose of buying computers, or".

    (4) Omit paragraphs (4) and (6).

    (5) In paragraph (7) - 

(a) omit sub-paragraph (c);

(b) in paragraph (d), after "computer hardware and software running costs" insert "and the renewal of any leasing agreements in respect of office equipment"; and

(c) in sub-paragraph (j)[18], for "the Statement referred to in regulation 22(2)", substitute "the Statement published in accordance with regulation 34 of the National Health Service (General Medical Services) Regulations 1992[19], as it had effect on 1st April 1996".

Amendment of regulation 24 of the principal Regulations
     20.  - (1) Regulation 24 of the principal Regulations (payments to a member of the fund-holding practice) is amended as follows.

    (2) In paragraph (1) - 

(a) at the beginning insert "Subject to regulation 24A,";

(b) at the end of sub-paragraph (a) insert "or";

(c) omit sub-paragraph (b); and

(d) in sub-paragraph (c), omit "or (e)".

    (3) In paragraph (2) - 

(a) omit "standard"; and

(b) omit "Part I of".

    (4) In paragraph (3)(a), omit "Part I of".

Limit on period of agreements
     21. After regulation 24 insert - 

" Limit on period of agreements
     24A.  - (1) Any agreement (whether or not it is an NHS contract for the purposes of section 4 of the 1990 Act) entered into on or after 1st April 1999 by the members of a fund-holding practice whereby the allotted sum would be applied as provided for in regulation 20, 23 or 24, must comply with the requirements of paragraph (2).

    (2) The agreement shall contain terms the effect of which shall be that - 


(a) it shall come to an end not later than the end of the period of 6 months beginning with the date the agreement was made and that the duration of the agreement may not be extended; and

(b) without prejudice to the availability of any remedy for breach of the agreement, no rights, liabilities or obligations are imposed beyond the end of that period.".

Amendment of regulation 25 of the principal Regulations
     22.  - (1) Regulation 25 of the principal Regulations (savings from the allotted sum) is amended as follows.

    (2) In paragraph (1) - 

(a) for "regulations 19 and 20" substitute "regulation 20";

(b) omit "22,", both times that it appears; and

(c) omit "19,".

    (3) For paragraph (2) substitute - 

    " (2) Subject to paragraphs (3), (3B) and (3C), where the accounts for a financial year of members of a fund-holding practice have been audited in accordance with Part III of the Local Government Finance Act 1982[20], the members of a fund-holding practice may, within the period of four years after the end of that financial year, with the consent of the Health Authority apply any part of the allotted sum paid to them in respect of that financial year for the purposes specified in regulations 20, 23(7)(j) and 24 or any one or more of the following purposes - 


(a) the purchase of material or equipment which - 


(i) can be used for the treatment of patients of the members of the practice, or

(ii) enhances the comfort or convenience of patients of the members of the practice; or



(b) the purchase of material or equipment relating to health education; or

(c) in relation to any premises from which the members of the practice carry on their practice - 



(i) improvements to the premises, including alterations to or decoration of the premises and the purchase of furniture and furnishings, or

(ii) building an extension provided that no acquisition of land is involved; or



(d) the purchase of goods and services as part of an initiative to improve prescribing practices within the fund-holding practice; or

(e) the cost of employing temporary staff.".

    (4) Omit paragraph (2A)[21].

    (5) In paragraph (2B)[22], omit "or (2A)".

    (6) In paragraph (3)[23], omit "(a) to (f) or paragraph (2A)".

    (7) In paragraph (3B)[24] - 

(a) omit "(a) to (f) or (2A)", and

(b) for "£90,000 of savings" substitute "£25,000 of savings or 25% of the total savings, whichever is the less".

    (8) For paragraph (3C)[25] substitute - 

    " (3C) The members of a fund-holding practice shall not in any one financial year apply savings for the purposes specified in paragraph (2) of any amount greater than £25,000 or 25% of the total savings, whichever is the less.".

    (9) After paragraph (3C) insert - 

    " (3D) In paragraphs (3B) and (3C) "total savings" means the total savings of the practice at the end of the most recent financial year, excluding any amount of savings which, at that date, the members of the fund-holding practice have entered a binding obligation to apply or received consent from the Health Authority to apply.".

[2] 1990 c.19. Sections 14, 15 and 16 were amended by, respectively, paragraphs 73, 74 and 75 of Schedule 1 to the Health Authorities Act 1995 (c.17), and sections 14 and 15 were amended by paragraph 65 of Schedule 2 to the National Health Service (Primary Care) Act 1997 (c.46). Section 14 was extended by section 19 of that Act.back

[3] S.I. 1996/706, amended by S.I. 1997/747, 1997/1678 and 1998/693.back

[4] These words were inserted by S.I. 1998/693, regulation 12(1).back

[5] Paragraph (2) was substituted by S.I. 1997/1678 and amended by S.I. 1998/693.back

[6] These words were inserted by S.I. 1998/693, regulation 12(3).back

[7] Regulation 10A was inserted by S.I. 1998/693.back

[8] The definition of "GP commissioning group" was inserted by S.I. 1997/747.back

[9] Paragraph (2) was substituted by S.I. 1997/747.back

[10] Regulation 3(9)(a) was amended by S.I. 1997/747.back

[11] Paragraph (2) was substituted by S.I. 1997/1678 and amended by S.I. 1998/693 and Part II of these Regulations.back

[12] The reference to a GP commissioning group was inserted by S.I. 1997/747, which also renumbered the former regulation 7 as paragraph (1) of that regulation.back

[13] Paragraph (2) was inserted by S.I. 1997/747.back

[14] The words "or a GP commissioning group" were inserted by S.I. 1997/747.back

[15] Paragraph (A1) was inserted by S.I. 1997/747.back

[16] Paragraph (2A) was inserted by S.I. 1997/747, and amended by S.I. 1997/1678.back

[17] Paragraph (1) was inserted by S.I. 1997/747, which also renumbered the existing text of regulation 21 as paragraph (2) of that regulation.back

[18] Sub-paragraph (j) was inserted by S.I. 1998/693.back

[19] S.I. 1992/635, to which there are amendments not relevant to this regulation.back

[20] 1982 c.32, as amended by Schedule 4 to the National Health Service and Community Care Act 1990 (c.19).back

[21] Paragraph (2A) was inserted by S.I. 1997/747, regulation 14(3).back

[22] Paragraph (2B) was inserted by S.I. 1997/747, regulation 14(3).back

[23] Paragraph (3) was substituted by S.I. 1997/1678 and amended by S.I. 1998/693.back

[24] Paragraph (3B) was inserted by S.I. 1998/693, regulation 11(4).back

[25] Paragraph (3C) was inserted by S.I. 1998/693, regulation 11(4).back