Is there a fixed period of time for a practice to achieve financial balance, and what happens if they don’t?
Answer Practices and PCTs will work together throughout the year to ensure resources are properly controlled and that resources which are freed up within the year are effectively redeployed to benefit patients in a sustainable way. The PCT will retain its responsibility for the allocation and the statutory financial duty to break even. The PCT and practices will work together to ensure the PCT achieves financial balance, or runs a small surplus. Any local incentive award should be dependent on practices not overspending their indicative budgets. Where practices persist in overspending, the PCT will wish to consider the practice contract to ensure that they are making the most effective use of health service resources.
