Another report has confirmed what GPs already know: average GP income is falling because the costs of running a practice keep rising.
The Health and Social Care Information Centre’s GP Earnings and Expenses 2012/13 Report* shows that:
- Average expenses for contractor GPs leapt 2.9% between 2011/12 and 2012/13: an increase of £3,000 in real terms
- As a result, GPs’ pre-tax income fell by an average of £2,100 in real terms, from £104,100 to £102,000
- Income declined even as average gross earnings increased by £1000, from £270,800 to £271,800.
The increase in expenses was mainly down to premises and employee costs. And the expenses figures don’t even include the cost of GPs’ pensions!
It’s all part of a decade-long trend of squeezed margins for GP practices.
Protect your bottom line
Now, if your practice is feeling the pinch, it may be tempting to cut corners on “selective” expenses such as locum insurance. But this is exactly the time to be looking to protect your practice.
If you think your balance sheet is under pressure now, imagine the financial black hole of an uninsured absence. Injury, illness, jury service, suspension: no-one ever expects it to happen to them, but the cost of paying for locum cover can be devastating to your practice’s bottom line. Can you really afford not to have locum insurance?
Finding the right locum insurance policy
Of course, that doesn’t mean that you should pay over the odds. We speak to GPs, practice managers and other health professionals all the time, and we know they want insurance that is:
- Cost-effective and consistently priced
- Flexible
- Can be trusted to pay out
For an annual premium as a low as £1,300, Practice Cover will pay out £2,500 a week for up to 52 weeks (following a four-week deferment period). Subject to the advice of your tax advisor, this may be treated as a tax deductible expense.
Some insurers will try to attract custom with artificially low “introductory offers” that quickly turn into much higher renewal premiums. We take a long-term view and price our policies consistently from year to year. At Practice Cover, 100% of our renewing clients are paying the same or less than they were last year.
Remember, with us your payout doesn’t have to be spent on a locum. You can spend it however you like, it’s your practice and you know better than anyone how to manage it.
We can also customise your insurance policy to meet your unique needs, letting you choose between:
- Different levels of cover: from a basic weekly sum paid for absence due to illness and accident, to additional sums paid out for medical expenses, phased return to work, maternity/paternity/adoption leave, domestic and childcare costs, among others
- Permanent or annually renewable cover
- Choice of deferment period (two to 26 weeks) and benefit period (up to 52 weeks)
For a ‘no obligation’ quote, click here https://practicecover.co.uk/get-a-quote/locum-insurance/get-a-quote or call us 0800 028 5633 or 023 8051 3286.
* http://cms.pulsetoday.co.uk/Uploads/2014/09/19/z/i/i/gp-earn-ex-1213-rep.pdf
The opinions presented in this blog are solely those of the author on behalf of Practice Cover Limited and they do not constitute individual advice. Practice Cover is a trading name of Practice Cover Limited and is authorised and regulated by the Financial Conduct Authority
