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GP landlord firm increases profits by almost 50%

A company specialisting in developing primary care premises and renting them out to GP practices has boosted profits by half this year.

Announcing its interim results for the six months ended 30 June 2015, Primary Health Properties (PHP) said its pre-tax profits rose by 46.6% compared with the first six months of 2014 – from £22.1m to £32.4m.

The GP landlord said that, comparing the same two six-month periods, its rental income increased by 5.2% to £30.6m, which was based on its ‘ability to secure additional property investments’ and reduce admin costs.

The company, which describes itself as ‘the UK’s leading investor in modern primary healthcare facilities’, indicated its bright outlook was boosted by the Government’s commitment to the NHS Five Year Forward View plan of moving care into primary care and the community.

PHP chairman Alun Jones and managing director Harry Hyman said that the drive to implement these plans would ‘require the replacement of many existing old, converted residential properties with modern, multi-functionality premises’.

Their announcement said: ‘The Five Year Forward View placed list-based primary care firmly at the centre of the future of the NHS and sets out plans for more “integrated out-of-hospital services based around the needs of local populations”. In order for this to be achieved efficiently, new models of care are being developed and further modern, flexible premises, such as those provided by PHP, will be required.’

The Government announced a £1bn fund to modernise GP premises as part of last year’s Autumn Statement, £190m of which has been allocated for upgrades in 2015/16.

Readers' comments (9)

  • These people seem to think the gravy train will keep running what happens with the approaching collapse of primary care,who will sign their 20 year leases.When most of us can't wait to get out of this omnishambles.

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  • usually the bosses of these companies are good mates with the powers that be in politics. someone will sign their leases. atos/maximus etc..........

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  • Good on them!

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  • Getting their slice of the cake. Clever, why not?

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  • We're all businesses. Years ago GPs made a tidy sum on retirement selling out from premises. Now no one wants to take the risk or invest the vast sums needed for modern sites, so these guys do it instead.

    ps. Most of you also think Macdonalds is a burger business. It isn't its a property company built using a burger franchise.

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  • Gosh what cynical comments so far. The specialist primary care property developers have done a good job for the practices that I work with. They get excellent references from GPs and practice managers. They find sites, help with the business case, and have excellent design teams.

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  • 12:19
    It comes to who is valued, recompensed and listened to in the NHS. A property developer or doctor.

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  • Una Coales. Retired NHS GP.

    GP landlords are quite common in Australia. Some ex NHS GPs are developing new build practices there and renting out the rooms/space to other GPs, sitting back and enjoying a portfolio career as a property developer.

    In fact it is common practice for Aussie GPs to pay a % to the practice for use of their premise and a % they keep from seeing semiprivate patients. The ratio for Aussie GPs is better than a 50:50 split.

    Here in the UK, when I did my 3 months in private practice yonks ago, the owner had an arrangement with one doctor where the doctor kept 50% of the income he made from self paying patients and gave 50% to the clinic for use of the surgery.

    Hairdressers also work in this style. They rent a chair from a chain, like Mr Toppers, and pay 50% to Mr Toppers and 50% they keep from their earnings. They can only survive by building up a base of loyal clientele.

    The best position financially would be to develop and sit back and enjoy the steady income from GP practices who pay the rent or leasehold.

    I guess the government is saying they cannot afford to subsidise NHS general practice and is looking for ways to free themselves from a £104 billion/yr NHS running costs when the country has a £1.5 trillion public deficit to clear or else there will be no pension pot, welfare or social care left for the population.

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  • These buildings are unfit fro purpose, disabled parking right at the back of the building with nearly 400 yards to walk to and from the consultation room.

    Public toilets that remain locked, required a pass code to get it, then the lock too high off the ground to be seen.

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