GP practices face £20,000 losses as APMS federation folds

A GP federation providing alternative provider medical services (APMS) has gone into administration, resulting in a number of local GPs facing losses of up to £20,000.

The provider, Danum Medical Services Ltd (DMSL), was set up privately in Doncaster by the 23 local shareholding practices. The company formerly held major contracts for an extended hours hub and GP out-of-hours services in Doncaster, but were unable to secure the contracts again once they had expired.

As a result many local shareholding GPs are facing losses, with Doncaster LMC warning that practices should be more aware of the liabilities they take on when deciding to federate and deliver services at scale.

Dr Dean Eggitt, LMC medical secretary, who is the nominated spokesperson for Danum told Pulse: “DMSL had six APMS contracts, and prior to that ran a number of other services including our 8-8 centre, and our out-of-hours service.

“In the last year it lost those two large contracts, at the end of the contract it went out to competitive tender. The loss of those contracts increased the financial instability of DMSL, which meant that those APMS contracts, which we know can be tight financially anyway, became difficult to manage within a tight financial envelope.”

A spokesperson for NHS England (Yorkshire and the Humber) told Pulse: “We are aware of the financial difficulties experienced by Danum Medical Services Ltd (DMSL) and we can confirm that contracts they hold to provide GP services in Yorkshire and the Humber have been terminated.

“NHS England in Yorkshire and the Humber has worked with DMSL and the practices involved to ensure new GP service providers are in place at those practices which means patients can continue to have access to high quality GP services.”