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Peter Rice: Peter Rice FSVA is a property valuer in private practice and is the founder and chairman of Valuers Associated with Medical Property, a discussion forum for valuers and surveyors with an interest in the valuation of surgeries
Introduction
The National Health Service (NHS) system of health provision is divided between primary care - general practitioners (GPs) - and secondary care - the hospitals sector. Over 90 per cent of patient contact takes place in primary care, with the GP acting as "gatekeeper", and overseeing the patient's access to all forms of NHS treatment.
In recognition of the GP's wide-ranging role and the fact that many medical services can be provided nearer and more cheaply in the primary sector, the future of the NHS is to be based on a primary-care-led system. As a consequence, the GP surgery will play an increasingly important role and is likely to expand in size, making it even more essential for valuers to have a proper knowledge of both the business side of primary care and the requirements and design features of a surgery.
A valuer of trade premises, such as public-houses, hotels, petrol stations, etc., is expected to have a knowledge of that business, together with licensing and planning requirements, design features and of course "goodwill" and market demand. The valuation of surgeries is no different, because, while the introduction of fundholding is widely recognized as having brought a financial dimension to primary care, what is less well appreciated is that the 1990 NHS contract introduced a competitive aspect to the work of all GPs - fundholders and non-fundholders alike.
This paper will look at the business side of primary care and the bearing it has on the valuation of surgeries, for, as will be seen, a waiting room full of patients does not of itself mean a financially attractive or even viable GP practice.
What is a GP?
To practise as a general practitioner, a doctor is required to undergo a further three years' vocational training. The first two years are spent on rotation in various hospital specializations such as paediatrics, obstetrics, accident and emergency, etc., with the final year attached to a training practice as a GP registrar. Training is also provided on the...