Speaking at a King’s Fund event in London on PCNs earlier this week Mr Naylor also said that it was important that NHS England did not ‘overload’ newly-formed PCNs.
‘We are trying to get better at saying to systems that these are the things we need to do as an NHS across the country – some of these things come with detailed “this is how you must do it”, but that is the exception,’ Mr Naylor said.
Forming a Primary Care Network (PCN) has a variety of financial, resourcing and operational benefits. Depending on how you consolidate multiple general practices, you may end up losing some of the strengths of each. Understanding the advantages and disadvantages of joining a newly formed PCN will help you make the best decision.
Unlike a practice acquisition that continues to run two General Practices using separate functions, a consolidation implies that you are merging the administrative functions of the practices. You have the option of consolidating redundant facilities or terminating overlapping departments, such as combining human resources, accounting, and information technology departments.
Economies of Scale
One of the ways of determining whether it will be cost-effective is to calculate the economies of scale you will achieve. You might find similar economies of scale with your information technology, administration, recruitment and purchasing functions. This can be a major incentive for creating a PCN.
When you become a part of a PCN, you may save money by eliminating redundant functions such as human resources, accounting, IT, and office administration. This reduces costs and provides more efficiency across all of the practices. You also can reduce the cost of redundant assets such as real estate, surgery, equipment, supplies, computers and software.
Forming a PCN gives you three options to maximize brand benefit. You can eliminate the weaker brand and use that practice’s assets to increase the reach of the surviving, stronger brand. Or you can consolidate functions to eliminate redundancies and take advantage of economies of scale. A third option is to launch a new brand using more efficient business practices. This lets you eliminate the negatives associated with the old practice.
To see how Capri healthcare can help OPCNs and practice to gain efficiencies please get in touch with us and we will be more than happy to help you.