Explanatory Note

(This note is not part of the Order)

This Order makes transitional provisions in connection with the abolition, by section 1 of the Health Act 1999, of the system of General Practitioner fund-holding in Wales, as established by the National Health Service and Community Care Act 1990.

In particular, the Order provides for the transfer of assets, rights and liabilities connected with fund-holding to the relevant Health Authority of the former fund-holding practice (articles 2 and 3) and for the use by the Health Authority of those assets in meeting liabilities transferred to it and those retained by the former members of the fund-holding practices (articles 4 and 6).

Where there are still assets after all the liabilities of the former fund-holding practice have been met the balance is to be apportioned, where there are former members of a practice in the area of a Health Authority other than the relevant Health Authority, between those Health Authorities (article 7), and in any event to be applied by the Health Authority for specified purposes in accordance with the wishes of the former members of the practice (article 8).

In addition, in Parts V and VI, provision is made so that, notwithstanding the abolition of fund-holding, obligations relating to accounts apply until final accounts have been audited and submitted. Complaints in relation to the conduct of a fund-holding practice may still be examined. Outstanding matters relating to the use of savings from fund-holding may be resolved and misapplied allotted sums recovered, on or after 1st April 2000.