If you’ve been working as a GP, deciding to become a partner might be the sensible next step in your career. By doing so, you’ll acquire a share in the business and have more of a say in the day-to-day running of the practice and management decisions, which could help you make a meaningful difference in the level of care and services a practice offers its patients. To become a partner in the UK, you’ll often need to apply for the position and buy into ownership, which will require you to raise funds. This is especially the case for practices that own their own premises. This guide will tell you everything you need to know about buying into a GP partnership and what your funding options are.
What Is A GP Partnership?
A GP partnership is an independent contractor-type business. This means they have to fund costs such as premises, running costs, certain drugs and equipment, and staff expenses out of the income they generate. Just like for any other business, GP partnerships need a cash float to keep operations going. To do this, investment from other GPs – who then become GP partners – is vital.
What Is A GP Partner?
GP partners are self-employed and own a share of the practice where they work. They have much more control over how the practice is run, which requires them to commit more time and effort to their work. Partners don’t get a salary and get paid like other business owners out of a share of the profits. Partners tend to earn more than regular, salaried GPs. The average pay for a partner in the UK is over £100,000*.
How Do You Become A GP Partner?
Often, practices will offer a GP partnership to GPs who already work in the surgery. You’ll usually be asked if you want to become a partner if another partner is retiring, so your investment will replace theirs, but this isn’t always the case.
As a rule of thumb, you’ll need to apply for the position to become a partner. You’ll then receive a split of shares to give you an ownership stake. What percentage you take on will depend on how the business is structured and how many people have shares in the business already.
How Much Does Buying into A GP Partnership Cost?
Before you can make any decisions regarding buying into a GP partnership, you’ll need to know the value of the practice first. To do this, you’ll need to look at the practice’s financial records, including tax returns and accountant’s statements and the building and land the surgery is on. Lenders will likely verify the value of the practice as well before approving you for borrowing.
How much it costs to buy into a GP practice will vary based on the percentage share you will get. For example, if you were to become the fourth partner, you would expect to pay 25% of the practice value.
How Do You Raise The Funds To Buy Into A Practice?
If you don’t have the money in savings or want to keep your personal finances untouched, you will need to apply for a commercial loan. These types of loans aren’t capped by the banks like other types. The team here at Doctors Mortgages Online can help you secure the funding you need at a rate that works for you with specialist lenders. The usual application and credit check process will apply. As loans to buy into a GP partnership can be quite substantial, you will be required to take out life cover to protect it. This is often a borrower requirement.
Explore Your Options With Doctors Mortgages Online
The prospect of becoming a GP partner and buying into a practice is incredibly exciting and comes with some big rewards. You’ll have input into how the medical centre is run, which can bring you extra job satisfaction as the choices you’ve made have a positive impact. You’ll also have better pay. However, to benefit from this, you’ll need to raise the capital to buy into the partnership or practice. If you don’t have the savings in place or don’t want to tap into your savings for this, a commercial loan is often the best option. It can be tricky to know which lenders to turn to, but that’s where our friendly and professional team can help. We’ve got years of experience assisting GPs to secure loans to take their careers that next step further. Contact us today to see how we can help you achieve your dreams of GP partnership!
*https://www.bmj.com/careers/article/the-bmj-s-guide-to-gp-partnerships
