Succession Planning for GP Partners
Date: 12/03/2025 | Healthcare
In our previous article we considered succession issues for Scottish GP Practices. It used to be the case that a retiring Partner would be easily replaced by an incoming Partner – perhaps from a pool of salaried GPs already known to the other Partners. These days, things are not quite so straightforward. In many cases, when senior Partners retire, there is no obvious succession plan in place that will allow the practice to continue. GP Partners should therefore consider reviewing their own circumstances, together with their practice’s arrangements, to ensure that they have no surprises when they choose to retire.
When should a GP Partner start planning for retirement?
GPs will no doubt have been putting in place financial plans for retirement for a number of years. However, there are other practical matters to consider if you are a Partner in a GP Practice. It is sensible to start to look at these matters well in advance of a planned retirement.
Some Key Considerations
What does your Partnership Agreement / Members’ Agreement (if your practice is a Limited Liability Partnership) say about retirement?
- Does your Agreement allow for 24 hour retirement / “Retire and Return” under the NHS pension schemes?
- Does your Agreement allow for 24 hour retirement / “Retire and Return” under the NHS pension schemes?
- How much notice do you have to give the other Partners to retire?
- Does notice of retirement need to be given by formal letter, or is email sufficient?
Do you need a Retirement Agreement?
- Usually only a letter of resignation is required, but check your Partnership Agreement.
- Retirement Agreements are usually only required if the terms of your retirement deviate from the terms of your Partnership Agreement. If you have agreed alternative arrangements e.g. a different repayment timetable, then a Retirement Agreement would be sensible.
What about the surgery premises?
- If the premises are owned, what does your Partnership Agreement say about retaining your share on retirement, or selling it to the other Partners?
- Are there provisions governing revaluation – e.g. when the premises are revalued, and confirming a type of valuation methodology?
- Consider what the timetable is for repayment of your capital account. There may be tax consequences for you.
- If the premises are leased, what does the lease say about retiring GP Partners? You may need to ensure that your name is removed from the lease on retirement, otherwise you could remain on the hook for a proportion of the liabilities under the lease.
Who will take over your patients / role in the practice?
- This is perhaps more of an issue for the practice, but if there is no incoming Partner lined up to take over, you may have concerns about your patients, or the viability of the practice. We would refer to our previous article on this.
Do restrictive covenants apply?
- If you’re planning to work at another practice, whether as a Partner, salaried GP or locum, check whether your Partnership Agreement contains restrictions on where you can practice or e.g. on taking key staff or patients with you.
What will patients and staff be told?
- You may wish to have some control over how your retirement is reported to patients and staff. It is unlikely this will be set out in your Partnership Agreement, but it could be written into a Retirement Agreement or otherwise agreed in writing with your fellow Partners.
Where can I get advice?
At Davidson Chalmers Stewart we are adept in advising GP Partners on all of these issues. For more advice, please contact me, Lisa Kitson, at lisa.kitson@dcslegal.com (0131 290 2812) or speak to another member of our specialist healthcare team.
Disclaimer
The matter in this publication is based on our current understanding of the law. The information provides only an overview of the law in force at the date hereof and has been produced for general information purposes only. Professional advice should always be sought before taking any action in reliance of the information. Accordingly, Davidson Chalmers Stewart LLP does not take any responsibility for losses incurred by any person through acting or failing to act on the basis of anything contained in this publication.
