Direct payments

CHP has worked with a number of health economies to introduce direct payments, making payment processes more efficient and reducing administration and potential issues. We are also in discussion with several more at the present time.

Under the direct payments scheme, GP Reimbursable payments are paid directly to CHP, rather than passed from the commissioner to the GP practice and then to CHP.

The benefits are:

• Reduction in administration overheads
  Instead of having to go through the exhaustive process of claiming reimbursable costs, a S52 consent letter can be signed giving the commissioner authority to pay directly to CHP on the GP’s behalf, reducing administration for the GP practice.
• Transparency
  The CCG will have clear sight of the cost of the primary care estate that will help with budgeting and recommissioning decision making. There is no requirement to chase GPs to claim Costs or submit invoice copies and schedules are agreed at the start of the year.
• Increased investment
  Similar to an overdraft, if CHP improves debtor days, reduced borrowing costs result in cost savings which can be redeployed in funding projects in a market with shrinking capital allocations. This is additional cash flowing into the system to fund development and aid increased utilisation of CHP buildings to add value and reduce commissioner costs.
• Benefits for GPs
  There is a reduced risk to GPs’ cash flow and direct payments enable GPs to ensure that payments can be made simply and in a transparent way.
  If you are interested in making direct payments in your area please contact your local area Property Team.