Practice merger proves right prescription for GPs
2nd October, 2013
TWO Tyneside GP practices have merged with assistance from law firm Ward Hadaway.
New start – (from left) Dr Peter Young, Dr Gordon Orritt and Dr Kevin Jones with Alison Oliver of Ward Hadaway, Sheinaz Stansfield, Dr Caroline Snell and Sister Helen Ramsay at the newly merged Oxford Terrace and Rawling Road Medical Group
Oxford Terrace Medical Group and Rawling Road Medical Centre in Gateshead have joined forces to become Oxford Terrace and Rawling Road Medical Group with help from the specialist healthcare practices team at UK Top 100 law firm Ward Hadaway.
The combined practice will see 12 practitioners serve over 15,200 patients from across Gateshead.
The merger follows extensive consultation with patients of the two practices, as well as input from Gateshead Metropolitan Borough Council and Local Area Team.
GP Partner Dr Peter Young said the move would give patients of both former practices wider access to more specialist advice and further improve the quality of service offered.
Dr Young added: “Also, the partners at Rawling Road offer different specialist skills to those at Oxford Terrace so by merging, we can manage patients’ needs better in primary care and don’t have to refer as many into secondary care.”
Practice Manager Sheinaz Stansfield said: “The Oxford Terrace practice population has increased quite significantly over the last couple of years and we needed to do something about the premises because the practice was outgrowing the current building.
“The merger improves patient access and quality as well as the range and variety of services and it also means we are better placed to meet the challenges presented by the changes in the delivery of healthcare within the NHS.
“We can use both sets of premises, pool our budgets and resources, which will make a big difference to the way the practice can now meet organisational and clinical challenges.”
The specialist healthcare practices team at Ward Hadaway in Newcastle provided legal advice to the partners of Oxford Terrace and Rawling Road on the merger.
Associate Alison Oliver, who led the firm’s team advising on the merger, said: “We are delighted to have assisted the partners on this practice merger, which is set to bring improved services to patients of both former practices.
“It is important to get the legal processes right when dealing with moves like this to ensure that NHS contracts remain in place, that everyone involved knows where they stand and that patients are kept well informed about what is happening.
“The partners and Sheinaz have developed a really comprehensive plan for the future of the new practice and are well equipped to deal with the rapid pace of change in the healthcare sector.”
Sheinaz Stansfield said: “Alison and the team at Ward Hadaway were fantastic and a great help with the merger.
“They addressed all the issues we needed to consider and worked very well with our accountants on the financial side of the merger.
“It is absolutely imperative on moves like this that you have the right legal support around because there are so many issues which need to be faced, from property matters to the partnership agreement which governs how the practice is run.
“Having legal advice with in-depth knowledge of the NHS is vital and I think we could not have got that advice from anywhere else.
“Alison and the team clarified a lot of very important issues from the outset so everyone knows where they stand, everything is documented and we can look forward with confidence to developing the practice for our patients.”
Alison has previously handled numerous sales, acquisitions and mergers of GP and dental practices, and regularly advises healthcare practices on their business structures, succession arrangements, and on NHS contracts and regulations.
Alison said mergers such as that involving Oxford Terrace and Rawling Road were likely to be a key feature of GP practice life going forward.
She explained: “The health service reforms have led to changes in the way that health services are commissioned, meaning that many practices’ incomes are being squeezed and they are having to be more competitive because more of the services they used to be able to provide as a core part of their practice will be commissioned differently in the future.
“This all adds up to practices having to look for economies of scale, provide a broader range of services and become more organisationally robust so we are likely to see more practices merging.
“We are also noticing an increase in practices forming ‘federations’ so that they can pool resources to provide services collaboratively.
“This enables practices to continue to function independently at practice level but to also get involved in securing service contracts that might be beyond their reach individually in an increasingly competitive environment.”
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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