The Primary Medical Services (Sale of Goodwill and Restrictions on Sub-contracting) Regulations 2004

Amendment of the PMS Agreements Regulations

5.—(1) In paragraph 69 of Schedule 5 to the PMS Agreements Regulations (other contractual terms – sub-contracting of clinical matters), after sub-paragraph (4) add the following sub-paragraph—

“(5) The contractor, if it has a list of registered patients or a list of registered patients is held in respect of it, shall not sub-contract any of its rights or duties under the agreement in relation to the provision of essential services to a company or firm—

(a) owned wholly or partly by the contractor, or by any former or current employee of, or partner or shareholder in, the contractor;

(b) formed by or on behalf of the contractor, or from which it derives or may derive a pecuniary benefit; or

(c) formed by or on behalf of a former or current employee of, or partner or shareholder in, the contractor, or from which such a person derives or may derive a pecuniary benefit,

where that company or firm is or was formed wholly or partly for the purpose of avoiding the restrictions on the sale of the goodwill of a medical practice in section 54 of the Act or any Regulations made wholly or partly under that section.”.

(2) After paragraph 106 of Schedule 5 to the PMS Agreements Regulations (other contractual terms – termination by the relevant body where there is a serious risk to the safety of patients etc), insert the following paragraph—

“Termination by the relevant body for unlawful sub-contracting

106A.   If the contractor breaches the condition specified in paragraph 69(5) and it comes to the relevant body’s attention that the contractor has done so, the relevant body shall serve notice in writing on the contractor—

(a) terminating the agreement forthwith; or

(b) instructing it to terminate the sub-contracting arrangements that give rise to the breach forthwith, and if it fails to comply with the instruction, the relevant body shall serve a notice in writing on the contractor terminating the agreement forthwith.”.