Can limited companies hold GMS and PMS contracts?
Understanding the restrictions.
The short answer is yes – but this is subject to certain restrictions.
GMS
Under s86 of the NHS Act 2006, a company limited by shares can hold a GMS contract – providing, in respect of that company:
(i) At least one share in the company is legally and beneficially owned by a medical practitioner.
(ii) Any share which is not so owned is legally and beneficially owned by a person referred in subsection (2)(b) of s86 (includes NHSE employers).
NOTE: there is an additional requirements in the GMS Regulations (Regulation 4(3)) that states that:
(i) At least one share in the company must be BOTH legally and beneficially owned by a general medical practitioner.(ii) Any other share or shares in the company that are BOTH legally and beneficially owned by a medical practitioner must be so owned by either:
a) A general medical practitioner.
b) A medical practitioner who is employed by… a Local Health Board, (in England and Wales and Scotland) an NHS Trust, an NHS foundation.
PMS
Under S93(1)(e) of the NHS Act 2006, a PMS agreement can be made with and held by a “qualifying body”.
Qualifying body is defined as a company which is limited by shares (as such LLPs or companies limited by guarantee are excluded) all of which are both legally and beneficially owned by personal failing in subsections (a), (b), (c), (d) or (e) of subsection of (1) of s93. Although not an exhaustive list, this excluded an NHS Trust, a medical practitioner who meets the prescribed conditions, a health care professional who meets the prescribed conditions, and an NHS employee.
FURTHER POINT TO NOTE: in the case of both the PMS and GMS Regulations, there are further requirements/restrictions as to the types of person that are excluded from holding shares, or indeed office (directorships etc.) in a company holding a PMS or GMS. These are contained in Regulation 5 of both the PMS and GMS Regulations. They cover such things as bankruptcy, disqualification, criminal conviction etc.
This document is intended for information only. If you are a limited company seeking a GMS or PMS contract, you should obtain specific legal advice to ensure compliance.