Premises dilemma

Q: Our practice is working from two sites five miles apart. The PCT has cut our PMS baseline funding by 25 per cent so we are looking at working from one location, but the main surgery is not big enough. The parish council has expressed an interest in building new surgery premises attached to the existing village hall, which would be ideal. The PCT will support the project if it is cost neutral: the level of notional rent must not exceed the total amount we currently receive for our two surgeries. The council has concerns about financing the project but we wonder if it could pay the construction costs and then receive rent from us under a long lease that matches the notional rent. Is that workable?

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