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Is independent contractor status doomed?

Dr David Coleman and Dr Tony Gu debate

Dr Tony Gu


There is nothing wrong with the independent contractor model, in itself. It is inherently efficient, incentivising subcontractors to operate in the most cost effective way to increase their profits. It allows for a degree of freedom for the way subcontractors can operate their business, allowing for local adaptation and to changing environments. Unfortunately, the strengths of the model are also its inherent weaknesses. The crux of the matter is that the independent contractor model is reliant on external factors to make it effective and in the current climate does not have the right contractual framework, the political resolve, nor the macroeconomic factors to make it viable.

The NHS monopoly employer status forces practices to sign up to a single capitation based GMS contract. This means subcontractors cannot charge market rates for their services and have to absorb any future rises in demand through the ‘all you can eat’ system. Even worse, the contract forms a shackle for GPs to absorb more work that is felt to be politically expedient, such as unplanned admissions or extended hours.

Proportional funding for primary care for the contract from this April is approximately 7.2% of the NHS budget, an all time low. More importantly, running these businesses are increasingly expensive. The unsavoury truth is that between the immutable factors of ageing demographics, rising demand for increasingly more complex services, and not enough money to go around, the NHS will be in a form of austerity for many years to come. There is no political will to change this either, with the Government focussed on Brexit and its economic ramifications.

The only conclusion I can draw is that there will be no political stomach or economic freedom for a massive uplift deal like the 2003/4 GMS contract, which I feel is the only thing that can save the IC model. Partner income will therefore continue to decline whilst workload rises. With the addition of an interrelated workforce crisis, there is now genuine concern that independent contractor GPs are running the risk of being the ‘last man standing’, a situation which can be a financial catastrophe. The subcontractor takes all the risk of the business, which allows NHS England and the Department of Health to abrogate all responsibility should things go wrong. Compare this to failing hospital trusts being bailed out, for example. It all adds immeasurable stress on an already stressful environment and it is no surprise that many new GPs do not wish to take up partnership.

I am in no doubt that GPs can run practices better than NHS managers. However, there is now so much bureaucracy and risk associated with partnerships, coupled with dwindling income, that the average partner may only be making slightly more than their salaried employees. Many are realising they are taking on far too much risk for very little extra reward. The freedom that independent contractor status previously gave GPs in running their own business is also eroding away. A quick look through a CQC checklist will tell you how little genuine freedom there is – does a university practice really need dementia protocols?

Independent contractors are good for patient continuity and its efficiency is good for the NHS. However the current NHS landscape means it is just not good for the GPs. I am not happy coming to this conclusion, and I wish it were different. But this is the current reality. Just ask the record number of practices asking to hand their contract back.

Dr Tony Gu is a locum GP in Manchester

Dr David Coleman


Since its inception in 1948, the NHS has been built on a foundation of strong general practice delivered through an independent contractor model. Practices organised like small businesses have long been praised for their efficiency, flexibility and ability to innovate, and this remains even in the current climate.

No-one can deny that GPs are under tremendous pressure. Regardless of contractual status, we are all struggling to manage an increasingly complex and utterly relentless workload. Being a partner undoubtedly adds another dimension of worries, but it also brings its own unique professional rewards.

Despite the ongoing erosion of our independence and constant contractual tinkering, general practice is still largely led by its clinicians. We know our practice populations better than anyone and we have the freedom to make decisions about how we run our services in a way that is best for patients. For example, in my practice we have developed a bespoke triage service that allows patients to choose whether to wait for a preferred doctor or be seen sooner by someone else, which improves access while still prioritising patient choice and continuity of care; patient satisfaction is high and our working lives have improved too. But would such a specific local innovation have been as easy to implement if we were salaried employees, pitching it to a large management team? I sincerely doubt it.

Independent contractor status allows GPs to act as independent patient advocates, able to challenge CCGs, NHS England, hospital trusts and other providers where appropriate. This is an absolute necessity in an age of multiple providers, and wouldn’t be possible if we were employed by one of these bodies.

As independent contractors who are clinicians with a strong overview of the practice’s needs, we are able to adapt our staffing accordingly. For example, we have recently recruited a community matron and emergency care practitioner to lead on care planning and help improve continuity of care for our housebound patients. Having the final say about who we recruit allows us to maintain a cohesive team with a shared ethos.

The current trend for working at scale clearly appeals to many, but so-called super practices or federations can still tap into the benefits of independent contractor status. As well as offering economy of scale and opportunities for career progression, large clinician-led organisations could reduce partners’ individual liabilities and significantly reduce the risk of being the last partner standing.

During the last decade general practice has been undervalued and underfunded. This is the root of our current woes and there is no simple solution, least of all wholesale and costly structural change. While there are common themes, the challenges facing a practice in London may be quite different to those facing colleagues in rural Cumbria or indeed suburban South Yorkshire. Independent contractor status allows GPs the flexibility to find solutions specific to their area and ensure general practice survives.

Dr David Coleman is a GP in Conisbrough, South Yorkshire

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Readers' comments (8)

  • Azeem Majeed

    There are many countries where general practitioners, family practitioners and primary care physicians are self-employed. However, the UK model where self-employed GPs obtain almost their income from one funder (the NHS) is very unusual. Self-employed GPs in other countries generally obtain their income from a number of sources such as private practice, insurance companies and government. For GPs’ independent contractor status to remain viable, it needs to be funded adequately, which would mean a switch to an activity-based contract. In the current political and economic climate, this does not seem very likely and we will therefore see independent contractor GPs come under increasing pressure as the gap between the number of GPs in post and the number we need continues to increase.

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  • Death of independent contractor status=Death or GP land=Death of the NHS. The health and social care system are intimately intertwined when you destroy part of the system the whole lot comes crashing down.

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  • Since the 2004 contract there appears to have been a vendetta against GP's which pervades most of the NHS and media. I had a district nurse refuse to do a flu jab on a housebound patient because her boss told her that we GP's earn too much and we should do it ourselves! The independent contractor status enables GP's to resist political interference and do what is best by their patients. There needs to be an activity based contract which rewards good practice but that would be unaffordable in the current climate. The shock of how much is done in primary care for free will hit the treasury if it becomes a PBR contract. The push towards super practices and MCP's is going to lead ultimately to a salaried service which will then negate the need for LMC's then the GPC and ultimately destabilise the BMA. Maggie T did it to the Miners will May do it to the BMA?

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  • The great flaw of the independent contractor model is that you put vast amounts of money into a business that has but one customer. Try running that business proposal past the Dragons' Den team and just watch as they all declare that they are "Out"!
    The NHS is not sustainable in its present format. It is going broke. The only question is, how many of us will it take with it.

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  • Observing where you are at, from the other side of the world, (Oz) it appears we are all caught up in the same situation, basically in between a rock and a hard place. If you are restricted in funding, and therefore unable to protect yourselves against the inevitable creeping medical inflation, which always runs at a higher rate than official inflation rates, and limited (as we are in Oz as well), in the ability to compensate by passing some cost onto the consumer, (totally in the UK case), then as you can't generate income out of thin air, something has got to give, and it ends up being the GP income that 'gives', from having to prop up an increasingly uneconomic model.

    A similar situation is developing in NZ as well, where the capitation has not been indexed for inflation for yonks, and the economic climate puts a brake on the level of private fees the public will bear, so you are not alone in this phenomenon.

    As I near the end of a 40 odd year GP career, 50% in NZ and now Australia, nothing has happened to change my view, that if GP is to survive anywhere as a financially worthwhile choice, it must be by dint of achieving a decent salaried position as the public servants we in effect are. So, yes, in my view the role of GP as an independent contractor is way past its best by date everywhere, not just the UK.

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  • @Steven Hopkins
    Steven, you forget one of the largest providers of primary care in England.
    The Hurley Group has over 100,000 patients, hundreds of staff and tens of salaried and locum doctors, and is run by 4 (four) powerful partners, who would fight tooth and nail to keep their independence.
    I wonder if one of the 4 partners, Lady Wessely, aka Dr Clare Gerada, has any comments to make on the issue of GP as independent contractor.

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  • Somewhat ironic a locum is writing in defence of IC status whose main weakness at the moment is the lack of interest in partnership

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  • Anonymous | Work for health provider15 Oct 2016 3:50pm

    actually the locum is writing against IC status.

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