GP funding and contracts explained

Advice and Information - 1 December 2022

The way general practices are contracted and funded is complex and very different from other parts of the health and care system. This explainer sets out how general practices are contracted and paid in England, looking at the services they are contracted to deliver, and the different streams of funding they receive.

What are general practices?

General practices are the small to medium-sized businesses whose services are contracted by NHS commissioners to provide generalist medical services in a geographical or population area. While some general practices are operated by an individual GP, most general practices in England are run by a GP partnership. This involves two or more GPs, sometimes with nurses, practice managers and others (as long as at least one partner is a GP), working together as business partners, pooling resources, such as buildings and staff, and together owning a stake in the practice business. GP partners are jointly responsible for meeting the requirements set out in the contract for their practice and share the income it provides.

To find out more, visit The King's Fund 

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