With effect from 1 January 2021 and throughout quarter 4 practices are expected to achieve 45% of their quarterly target to retain their full NHS payments.
For example if you are contracted to do 24,000 UDAs for the year, your quarterly target is 6,000, which at 45% = 2,700 UDAs. Essentially for every UDA you achieve during Q4 it will be worth 2.22 UDAs to you.
Practices will continue to have the 16.75% adjustment applied to the part of the contract that has not actually been delivered. Using the same numbers as above if you achieve the 2,700 UDAs these will be paid in full and the 3,300 that have been deemed to delivered will see an abatement.
If you achieve between 36% and 45% then each UDA will still be worth 2.22 UDAs to you and you will see a clawback based on the under achievement.
If, however, you achieve less than 36% you will be deemed to have delivered only the actual activity delivered in the months January to March and your clawback will be significantly higher.
To give an example assuming the same numbers as above and a UDA rate of £26 and ignoring the 16.75% abatement for simplicity:
If you achieve 45% of your target you will receive:
2,700 x 2.22 UDAs x £26 = £156,000
If you achieve 36% of your target you will receive:
2,160 (36%) x 2.22 x £26 = £125,000
If however you achieve 35% of the UDAs you no longer get credit at 2.22 per UDA. So the figures will look like this:
2,100 x £26 = £54,600
The difference between achieving 35% and 36% is therefore over £70,000!! It is this cliff edge drop that seems incredibly unfair and why it is so important that you work with your team to ensure that you at least achieve 36%.
Practices who have been unable to hit their targets due to exceptional circumstances, such as staff being required to self-isolate, will be able to appeal via the force majeure process. We strongly urge any NHS practice that is struggling to meet target to keep a detailed record of events that have happened – self isolation, childcare issues, cancelled appointments etc.
Contractual arrangements will revert to normal in April 2021. However, the government have said they will keep the situation under review.
Scotland have already announced that their COVID 19 support payments will continue until the end of June 2021.
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