• Six-month review of Carr-Hill formula to begin immediately
  • Range of options under consideration
  • But not clear if any changes will be accompanied by extra cash

The review of the system used to allocate funding to GP practices announced yesterday will begin immediately and aim to conclude within six months, the Department for Health and Social Care has told HSJ.

The government, which said it wants to change the funding model to redirect resources to poorer areas, said the review of the Carr-Hill formula will be carried out by the National Institute for Health and Care Research.

It has been tasked with identifying a new formula, assess the feasibility of implementing it alongside the 10-Year Health Plan, and make on overall recommendation on the best approach to replace the formula.

The move follows health and social care secretary Wes Streeting pledging to overhaul the funding distribution model, which was introduced more than 20 years ago, in July.

Critics of the existing formula, which determines each practice’s share of core funding, say it is out of date and fails to account for deprivation.

The government said it expected more deprived and coastal areas to benefit, highlighting research that showed patients in the least well-off parts of the country were more likely to struggle to access GP services.

However, experts cautioned that any overhaul would have to be accompanied by additional funding and it is not clear at this stage if any new money will be on offer.

A pilot carried out in the Leicester, Leicestershire and Rutland Integrated Care System testing a new model incorporating needs and deprivation data found it would cost more than £300m to implement across the country.

HSJ understands experts will consider other options for the allocation formula beyond just updating the data, including looking at patient-level needs estimates, predictions based on population health data, and hybrid models.

A range of options will be assessed against whether they will see funding follow patients and reflect unmet need.

It comes amid a dispute between the government and the British Medical Association on the introduction of online triage to all practices. The union has raised concerns that this could affect patient safety.

Care minister Stephen Kinnock said: “The way GP funding is allocated is outdated and no longer fit for purpose – with more deprived areas and coastal communities across the country experiencing the highest levels of inequality.”

Luisa Pettigrew, senior policy fellow at the Health Foundation, said: “The review should look at the range of funding sources going into general practice, how this money is best used, and the extra investment needed to avoid patients in some areas losing out.

“Making this happen will depend on additional funding going into general practice – and not removing it from one area of general practice in favour of another or relying on savings from hospitals which may never materialise.

“This is not the first time that general practice funding has been reviewed – the real test for government is whether they follow it up with the policy change and investment needed in response.”

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