National Health Service Act 2006

Sale of medical practices E+W

259 Sale of medical practices E+W

(1) It is unlawful to sell the goodwill of the medical practice of a person to whom any of subsections (2) to (4) applies, unless the person—

(a) no longer provides or performs the services mentioned, and

(b) has never carried on the practice in a relevant area.

(2) This subsection applies to a person who has at any time provided general medical services under arrangements made—

(a) with any Council, Committee or Authority under the National Health Service Act 1946 (c. 81) or the National Health Service Reorganisation Act 1973 (c. 32), or

(b) with any Primary Care Trust, Health Authority or Local Health Board under section 29 of the National Health Service Act 1977 (c. 49).

(3) This subsection applies to a person who has at any time provided or performed personal medical services in accordance with section 28C of the National Health Service Act 1977 (prior to the coming into force of section 16CC of that Act).

(4) This subsection applies to a person who has at any time, in prescribed circumstances or, if regulations so provide, in all circumstances, provided or performed primary medical services—

(a) in accordance with section 28C arrangements (within the meaning given by section 28D of the National Health Service Act 1977),

(b) in accordance with arrangements under section 16CC(2)(b) of that Act,

(c) under a general medical services contract (within the meaning of section 28Q(2) of that Act),

(d) in accordance with section 92 arrangements or section 50 arrangements,

(e) in accordance with arrangements under [F1 section 83(2)] of this Act, or section 41(2)(b) of the National Health Service (Wales) Act 2006 (c. 42),

(f) under a general medical services contract or a Welsh general medical services contract.

[F2 (4A) The reference in subsection (4)(e) to arrangements under section 83(2) of this Act includes a reference to arrangements made under section 83(2)(b) of this Act before the commencement of paragraph 30 of Schedule 4 to the Health and Social Care Act 2012 (sub-paragraph (2) of which replaces section 83(2)).]

(5) In this section—

• “goodwill” includes any part of goodwill and, in relation to a person practising in partnership, means his share of the goodwill of the partnership practice,

• “medical practice” includes any part of a medical practice,

• “relevant area” [F3 —]

  (a)

  in relation to any Council, Committee, Primary Care Trust, Local Health Board or Authority by arrangement or contract with whom a person has at any time provided or performed services, means the area, district or locality of that Council, Committee, Primary Care Trust, Local Health Board or Authority (at that time) [F4 ;

  (b)

  in relation to [F5 NHS England], in a case where a person has at any time provided or performed services by arrangement or contract with [F5 NHS England], means the prescribed area (at the prescribed time).]

• “section 50 arrangements” means arrangements for the provision of services made under section 50 of the National Health Service (Wales) Act 2006 (c. 42), and

• “Welsh general medical services contract” means a contract under section 42(2) of the National Health Service (Wales) Act 2006.

(6) Schedule 21 makes further provision in relation to this section.

Textual Amendments

F1 Words in s. 259(4)(e) substituted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 132(2); S.I. 2013/160, art. 2(2) (with arts. 7-9)

F2 S. 259(4A) inserted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 132(3); S.I. 2013/160, art. 2(2) (with arts. 7-9)

F3 Words in s. 259(5) inserted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 132(4)(a); S.I. 2013/160, art. 2(2) (with arts. 7-9)

F4 Words in s. 259(5) inserted (1.4.2013) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 4 para. 132(4)(b); S.I. 2013/160, art. 2(2) (with arts. 7-9)

F5 Words in Act substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 1 para. 1(1)(2); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

Modifications etc. (not altering text)

C1 S. 259 transfer of functions (10.7.2008) by Welsh Ministers (Transfer of Functions) Order 2008 (S.I. 2008/1786), art. 2(b) reg. 1(2)