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FINANCE FOR PRACTICE MANAGERS

FINANCE FOR PRACTICE MANAGERS. Jenny Stone, ACA Ramsay Brown and Partners Ramsay House 18 Vera Avenue London N21 1RB Tel: 202 8370 7705 E-mail: Jenny@ramsaybrown.co.uk. Finance Issues Practices are facing. Majority of practices have not had an inflation uplift since new contract

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FINANCE FOR PRACTICE MANAGERS

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  1. FINANCE FOR PRACTICE MANAGERS Jenny Stone, ACA Ramsay Brown and Partners Ramsay House 18 Vera Avenue London N21 1RB Tel: 202 8370 7705 E-mail: Jenny@ramsaybrown.co.uk

  2. Finance Issues Practices are facing • Majority of practices have not had an inflation uplift since new contract • Profits are falling • Cashflow difficulties • Pressure from partners to maintain profit/drawings

  3. Funding for 2008/09 • For 2008/09 global sum increased by 2.7% • However if receive MPIG then any increase in global sum will reduce MPIG correction factor • Majority of practices have not had an inflation uplift since new contract • Funding for extended hours recycled from access and QOF

  4. How to Increase Practice Profit • Practices have seen a drop in profits for the last two years • Profit = Income less Expenses • To increase profit need • Increase income • Reduce expenses

  5. Increasing Income • Under nGMS very difficult to increase NHS income • Increase practice list • Practice Mergers/bidding for vacant practices • Aim to achieve maximum QOF points • Ensure max enhanced services income and taking up new directed enhanced • Correctly claiming reimbursement of rent & rates, vaccines • Ensure private fees charged and monies received • Using existing resources to generate new income

  6. Other Income • Need to consider benefit of new service compared to cost • Examples of other income • Teaching medical students • Becoming a training practice • Service charges for use of rooms • Nursing homes • Dr for Private Schools • Occupational health • PBC provider

  7. Reducing Expenditure • Review all areas for potential savings • Cheaper suppliers for telephone, gas, electricity, insurance • Keep an eye on stationery expenditure, costs can escalate • More use of e-mail as opposed to printing and posting • Review work carried out by staff • Review use of locums • Sharing resources with local practices • Setting budgets for all areas of expenses for year, allows you to monitor and control expenses

  8. Preparing Budgets • Use of budgets • Predication of the profitability of practice • Setting a budget allows you to monitor and control income and expenses • Set partners monthly drawings • How to prepare a budget • Start with last yrs income and expenses • Adjust for changes in income and expenses e.g. new services, additional staff • Compare monthly budget with actual results • Budgets can be reviewed throughout the year and amended

  9. Preparing Cash flow Forecasts • Use of Cash flows • Difference between cash coming in and cash going out • Helps to identify period when may go overdrawn • How to Prepare a cash flow • Include all income and expenses in months that they occur • Include partners drawings, superannuation, tax (if practice pay it) and loan repayments

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