Health Act 1999 (Fund-holding Practices) (Transfer of Assets, Savings, Rights and Liabilities and Transitional Provisions) Order 1999
| Jurisdiction | UK Non-devolved |
| Citation | SI 1999/2541 |
1999 No. 2541
NATIONAL HEALTH SERVICE, ENGLAND
The Health Act 1999 (Fund-holding Practices) (Transfer of Assets, Savings, Rights and Liabilities and Transitional Provisions) Order 1999
Made 10th September 1999
Laid before Parliament 10th September 1999
Coming into force 1st October 1999
The Secretary of State for Health, in exercise of powers conferred on him by section 63 of the Health Act 19991and of all other powers enabling him in that behalf, hereby makes the following Order:
PART I
GENERAL
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Health Act 1999 (Fund-holding Practices) (Transfer of Assets, Savings, Rights and Liabilities and Transitional Provisions) Order 1999 and shall come into force on 1st October 1999.
(2) In this Order, unless the context otherwise requires—
“the 1977 Act” means the National Health Service Act 19772;
“the 1990 Act” means the National Health Service and Community Care Act 19903;
“the 1996 Regulations” means the National Health Service (Fund-holding Practices) Regulations 19964as in force before the coming into force of this Order;
“allotted sum” means any sum determined by the Secretary of State and payable by the relevant Health Authority in accordance with section 15(1) of the 1990 Act as then in force, or a sum to be determined in accordance with article 14 of this Order;
“balance agreement” means a written agreement signed on behalf of the Health Authority and by each former member of a fund-holding practice whose portion of the final balance is affected by the agreement, setting out how the final balance of that practice is to be applied for one or more of the purposes set out in article 8(4);
“final balance” shall be construed in accordance with article 7;
“former members of a fund-holding practice” means the medical practitioners who—
(a) were members of a fund-holding practice and who—
(i) renounced recognition as a fund-holding practice in accordance with regulation 11 of the 1996 Regulations, or
(ii) had recognition removed in accordance with regulation 32 of the National Health Service (Fund-holding Practices) Amendment Regulations 19995; or
(b) were members of a residual fund-holding practice;
“fund-holding account” means a bank account (including any account with a building society incorporated under the Building Societies Act 19866) maintained by the former members of a fund-holding practice for the purpose of receiving an allotted sum or any part of it;
“fund-holding practice” means a fund-holding practice recognised under the 1990 Act as then in force;
“fund-holding provisions” means sections 14 to 17 of the 1990 Act7;
“list size” means the number of individuals on the list of patients of a medical practitioner who provides general medical services in accordance with arrangements under section 29 of the 1977 Act8;
“notice” means notice in writing;
“part financial year 1999–2000” means the period of the financial year 1999–2000 from 1st April 1999 to 30th September 1999 inclusive;
“residual fund-holding practice” means a fund-holding practice which was recognised as such for all or part of the part financial year 1999–2000;
“savings” shall be construed in accordance with regulation 25(1) and (2) of the 1996 Regulations9;
“transferred assets” shall be construed in accordance with article 2; and
“written consent” means written consent by the Health Authority to the application of part of the allotted sum for a specific purpose in accordance with regulation 25(2) of the 1996 Regulations or regulation 24 of the National Health Service (Fund-holding Practices) Regulations 199310as the applicable regulation had effect on the date the consent was given.
(3) In this Order, except where the contrary appears, any reference to a Health Authority is a reference to the relevant Health Authority, construed in accordance with section 15(1B) and (1C)11of the 1977 Act as in force immediately prior to the coming into force of this Order.
(4) In this Order any reference to the rights and liabilities of the former members of a fund-holding practice is a reference to rights acquired and liabilities incurred in connection with the application of an allotted sum.
PART II
TRANSFER OF ASSETS, RIGHTS AND LIABILITIES
Transfer of assets
2.—(1) The allotted sum, or any remaining part of it, for the part financial year 1999–2000, or any previous financial year, whether held by the former members of the fund-holding practice or by the Health Authority, shall on 1st October 1999 be transferred to the Health Authority.
(2) On 1st October 1999 the Health Authority shall be substituted as the account holder of the fund-holding account.
(3) The Health Authority shall deal with the allotted sum transferred under paragraph (1) in accordance with articles 4 to 8.
Transfer of rights and liabilities
3.—(1) Subject to paragraphs (2) and (3)—
(a)
(a) any rights to which the former members of the fund-holding practice were entitled, or which were enforceable by them, immediately before 1st October 1999; and
(b)
(b) any liabilities to which the former members were subject, or which were enforceable against them immediately before that date,
shall on that date be transferred to or, as the case may be, shall on and after that date be enforceable by or against, the Health Authority.
(2) Paragraph (1) shall not apply to any rights acquired or liabilities incurred in connection with the application of savings for which written consent was required.
(3) Paragraph (1) shall not apply to any rights acquired or liabilities incurred in connection with the application of the allotted sum for the purpose of—
(a)
(a) the purchase of goods and materials for the use of the former fund-holding practice, including support and maintenance contracts relating to computers or office equipment;
(b)
(b) payments under leasing and hire purchase agreements for the purchase of goods and materials.
PART III
LIABILITIES AND COSTS TO BE MET BY HEALTH AUTHORITIES
Use of the transferred assets
4.—(1) Subject to paragraph (2), where—
(a)
(a) any assets have been transferred to the Health Authority in accordance with article 2; and
(b)
(b) in accordance with articles 3, 5, or 6, any liability is enforceable against the Health Authority, or any cost is to be met by the Health Authority,
the Health Authority shall secure that the liability or cost shall first be met out of the transferred assets.
(2) Where liabilities and costs exceed the total value of the transferred assets they shall be met from the transferred assets in the following order—
(a)
(a) costs incurred in preparation of the accounts as set out in article 5;
(b)
(b) the cost of meeting rights and liabilities retained by the former members of a fund-holding practice as set out in article 6;
(c)
(c) the cost of meeting rights and liabilities transferred to the Health Authority in accordance with article 3.
Costs incurred in preparing the accounts of residual fund-holding practices
5.—(1) Subject to article 9, the Health Authority shall meet the reasonable costs incurred by the former members of a fund-holding practice which was a residual fund-holding practice in preparing the annual accounts of that practice for the part financial year 1999–2000, which may include—
(a)
(a) payments to employees or former employees of the residual fund-holding practice;
(b)
(b) payments to either—
(i) a former member of the residual fund-holding practice, or
(ii) a registered medical practitioner to provide general medical services to the patients of a former member of the residual fund-holding practice who is engaged in preparing those accounts;
(c)
(c) auditors' fees;
(d)
(d) payments relating to computers and information technology.
(3) The Health Authority may also second any of its officers or employees to assist the former members of a residual fund-holding practice with the preparation of the annual accounts of the fund-holding practice for the part financial year 1999–2000, in which case it shall meet the cost of such secondment.
(4) The Health Authority may discharge its liability to meet the costs incurred in accordance with paragraph (1), in whole or part, by discharging the liability of the former members of the residual fund-holding practice to any other person.
Rights and liabilities remaining with former members
6.—(1) Subject to paragraphs (2) and (3), any liability which did not become enforceable against the Health Authority in accordance with article 3, shall nevertheless be paid for by the Health Authority if the liability—
(a)
(a) is one which falls within article 3(2); or
(b)
(b) is incurred on or after 1st October 1999 pursuant to written consent granted before that date.
(2) The Health Authority shall be liable to pay for a liability of the former members of the fund-holding practice under paragraph (1) up to the lower of any limitation on the sum to be applied set out in the written consent or in paragraphs (3B) and (3C) of regulation 2512of the 1996 Regulations as those paragraphs had effect on the date the Health Authority consent was granted.
(3) Where the former members of a fund-holding practice become aware of any claim relating to a liability falling within paragraph (1), they shall—
(a)
(a) notify the Health Authority of the claim; and
(b)
(b) take such action as the Health Authority shall reasonable require to avoid, dispute, resist, compromise, defend or appeal against the claim.
PART IV
FINAL BALANCE
Calculation and apportionment of final balance
7.—(1) When a...
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