GP Fundholding

GP Fundholding is a system that was introduced in the United Kingdom by the National Health Service (NHS) in 1991. The system was designed to give general practitioners (GPs) control over their budgets, allowing them to purchase healthcare for their patients directly. This was a significant shift from the traditional model of healthcare provision, where healthcare was provided by hospitals and other secondary care providers, funded centrally by the NHS.

History

The GP Fundholding scheme was introduced by the Conservative Party government under Prime Minister Margaret Thatcher. The aim was to increase efficiency in the NHS by encouraging competition between providers. The scheme was controversial, with critics arguing that it would lead to a two-tier health system, with fundholding GPs able to provide better services than non-fundholding GPs.

Operation

Under the GP Fundholding system, GPs were given a budget based on the number of patients on their list and the demographic characteristics of those patients. They could then use this budget to purchase a range of healthcare services, including hospital care, mental health services, and community health services. This gave GPs more control over the care their patients received, and was intended to encourage innovation and efficiency in service provision.

Impact

The impact of GP Fundholding is a subject of ongoing debate. Some studies have suggested that the scheme led to improvements in efficiency and patient satisfaction. However, other research has suggested that the scheme may have increased inequalities in healthcare provision, with fundholding GPs able to provide a wider range of services than non-fundholding GPs.

Abolition and Legacy

The GP Fundholding scheme was abolished in 1997 by the incoming Labour Party government. However, the principle of giving GPs control over their budgets has been retained in subsequent reforms of the NHS, most notably in the introduction of Clinical Commissioning Groups in 2012.