Extra Money? I don't think so!

In 2002, our practice moved over to a different contract under which we supply 'doctoring' to our local population. I won't bore you with the detail but we signed what is, in the jargon, a Primary Medical Services ("PMS") contract. In essence, we are paid an annual sum of money out of which we have to run the practice, rent and maintain the premises, and pay the staff. Whatever is left is the partners' earnings. This is the same contract that the Department of Health propagandists have been denouncing as "too generous".

The first year (2002/03) payment was £1,106k.
This year's payment (2008/09) is £1,128k.

If annual payments had been adjusted by changes in the retail price index (RPI) , this year's payment would have been £1,374k. So inflation has eaten away 22% of our real income. At the same time, our practice list has grown by 7%.

The total amount we have "lost" through inflation is £767k over five years. By end 2010, they will have six years for the price of five.