But things change. The average principal is earning £133,482, and 25% of GPs have profit shares less than £110,000. The two clients that asked me to look into their partner v salaried GP both had GP profit shares of around £110,000 for 8 sessions.
To make the comparison, two stages are necessary, firstly to remove the employers superannuation from the partner’s profit share and secondly to add the on-costs onto the salaried GPs profit share.
In these cases, the £110,000 profit share reduces to £96,000 without the employers superannuation and assuming 8 sessions is full time this works out at £12,000 per session.
In both cases the sessional rate for the salaried GP was expected to be £8,500. 27% has to be added to cover the cost of the employers National Insurance contributions and the employers superannuation which brings up the cost to £10,795 and adding on the cost of membership of the medical defence organisation makes this £11,295.
So the differential for possibly 25% of GP practices is now only £705 per session. Of course there are other factors to consider, if practice income falls you can make a salaried GP redundant but not a partner. But, partners tend to be more committed to their practices than salaried GPs.
I see the return of the partners ahead.