Advice before becoming a GP Principal

There are a myriad of issues to consider before accepting a post as a GP principal.  Clinical issues and the personalities of new partners are critical, but also important are financial issues.

Some GP’s are uncertain about how much financial information they should request from their new partners.  No-one would accept a job without having full details of the terms and conditions and no-one should enter into partnership without a full understanding of the financial consequences.

Questions You Should Ask

  • Is the practice you are joining financially well managed?
  • What is your profit share (gross pay) likely to be?
  • What are your drawings (net pay) likely to be?
  • How does the practice deal with the partners’ income tax?
  • Can you see the last three years practice accounts?
  • Ask if anything has happened to materially affect the partnership profitability since the last set of accounts?

Your new partners should expect you to request information and should be happy to share it with you.  If the partners are reluctant to discuss financial matters, you should ask yourself why?

How Can We Help

We are experienced in reviewing GP practice accounts.  We know what levels of profit are typical and we know what profit sharing arrangements are being offered to new principals.  We can review the accounts of your prospective partners and let you know:-

  • If the practice is financially well managed.
  • How partners’ income compares with other practices.
  • Are your profit sharing arrangements good or bad.

We can also review the financial provisions in the partnership agreement.