Becoming a GP Principal – What You Need to Know

We have helped many GP’s taking the step from a salaried or locum position to that of GP principal.  Help and advice in this area at this time can be invaluable.  Salaried or locum GP’s may find it difficult to fully understand a set of surgery accounts.  They may find it difficult to know whether the partnership agreement they are being asked to sign is fair.

For example, should a new GP expect parity of profit share immediately or is it reasonable to achieve parity over a period of time?  There are many areas in which a new GP principal may need advice:

  • If the practice owns the surgery, should the new GP borrow money to own a portion of the building?
  • What are ‘prior shares’ of profit and how do they effect the new GP?
  • How is seniority apportioned between the partners?
  • Does the new GP understand that they will now bear the cost of the 14% employer’s superannuation contributions as well as employee superannuation contributions?
  • Who will bear the costs of professional fees and subscriptions?
  • What is the holiday entitlement?
  • How much will the GP principal earn compared with the sessional rate paid to a salaried or locum GP?

The list of questions can be lengthy.

How We Can Help

 We often review the accounts of GP practices on behalf of salaried or locum doctors before they take up positions as GP principals.

We ensure that our clients fully understand the financial implications of becoming a GP principal.

Not having such an understanding is the equivalent of accepting an employed position without knowing what the salary is!