Statutory Instruments made by the National Assembly for Wales

"the 1977 Act" ("Deddf 1977") means the National Health Service Act 1977[2];

"the 1990 Act" ("Deddf 1990") means the National Health Service and Community Care Act 1990[3];

"the 1996 Regulations" ("Rheoliadau 1996") means the National Health Service (Fund-holding Practices) Regulations 1996[4] as in force before the coming into force of this Order;

"allotted sum" ("swm dynodedig") means any sum determined by the National Assembly and payable by the relevant Health Authority in accordance with section 15(1) of the 1990 Act as then in force, or a sum to be determined in accordance with article 14 of this Order;

"balance agreement" ("cytundeb balans") means a written agreement signed on behalf of the Health Authority and by each former member of a fund-holding practice whose portion of the final balance is affected by the agreement, setting out how the final balance of that practice is to be applied for one or more of the purposes set out in article 8(4);

"final balance" ("balans terfynol") shall be construed in accordance with article 7;

"former members of a fund-holding practice" ("cyn-aelodau o bractis deiliad-cronfa") means the medical practitioners who - 

(a) were members of a fund-holding practice and who - 


(i) renounced recognition as a fund-holding practice in accordance with regulation 11 of the 1996 Regulations, or

(ii) had recognition removed in accordance with regulation 32 of the National Health Service (Fund-holding Practices) Amendment Regulations 1999[5]; or



(b) were members of a residual fund-holding practice;

"fund-holding account" ("cyfrif deiliad-cronfa") means a bank account (including any account with a building society incorporated under the Building Societies Act 1986[6]) maintained by the former members of a fund-holding practice for the purpose of receiving an allotted sum or any part of it;

"fund-holding practice" ("practis deiliad-cronfa") means a fund-holding practice recognised under the 1990 Act as then in force;

"fund-holding provisions" ("darpariaethau deiliad-cronfa") means sections 14 to 17 of the 1990 Act[7];

"list size" ("maint rhestr") means the number of individuals on the list of patients of a medical practitioner who provides general medical services in accordance with arrangements under section 29 of the 1977 Act[8];

"the National Assembly" (" y Cynulliad Cenedlaethol") means the National Assembly for Wales;

"notice" ("hysbysiad") means notice in writing;

"residual fund-holding practice" ("practis deiliad-cronfa gweddilliol") means a fund-holding practice that was recognised for the financial year 1999-2000;

"savings" ("arbedion") shall be construed in accordance with regulation 25(1) and (2) of the 1996 Regulations[9];

"transferred assets" ("asedau a drosglwyddir") shall be construed in accordance with article 2; and

"written consent" ("cydsyniad ysgrifenedig") means written consent by the Health Authority to the application of part of the allotted sum for a specific purpose in accordance with regulation 25(2) of the 1996 Regulations or regulation 24 of the National Health Service (Fund-holding Practices) Regulations 1993[10] as the applicable regulation had effect on the date the consent was given.

    (3) In this Order, except where the contrary appears, any reference to a Health Authority is a reference to the relevant Health Authority, construed in accordance with section 15(1B) and (1C)[11] of the 1977 Act as in force immediately prior to the coming into force of this Order.

    (4) In this Order any reference to the rights and liabilities of the former members of a fund-holding practice is a reference to the rights acquired and liabilities incurred in connection with the application of the allotted sum.

    (5) This Order shall apply only to Wales.

(a) any rights to which the former members of the fund-holding practice were entitled, or which were enforceable by them immediately before 1st April 2000; and

(b) any liabilities to which the former members of the fund-holding practice were subject, or which were enforceable against them immediately before that date,

shall on that date be transferred to or, as the case may be, shall on and after that date be enforceable by or against the Health Authority.

    (2) Paragraph (1) shall not apply to any rights acquired or liabilities incurred in connection with the application of savings for which written consent was required.

    (3) Paragraph (1) shall not apply to any rights acquired or liabilities incurred in connection with the application of the allotted sum for the purpose of  - 

(a) the purchase of goods and materials for the use of the former fund-holding practice, including support and maintenance contracts relating to computers or office equipment;

(b) payments under leasing and hire purchase agreements for the purchase of goods and materials.

(a) any assets have been transferred to the Health Authority in accordance with article 2; and

(b) in accordance with articles 3, 5, or 6, any liability is enforceable against the Health Authority, or any cost is to be met by the Health Authority,

the Health Authority shall secure that the liability or cost shall first be met out of the transferred assets.

    (2) Where liabilities and costs exceed the total value of the transferred assets they shall be met from the transferred assets in the following order - 

(a) costs incurred in preparation of the accounts as set out in article 5;

(b) the cost of meeting rights and liabilities retained by the former members of the fund-holding practice as set out in article 6;

(c) the cost of meeting rights and liabilities transferred to the Health Authority in accordance with article 3.

Costs incurred in preparing the accounts of residual fund-holding practices
     5.  - (1) Subject to article 9, the Health Authority shall meet the reasonable costs incurred by the former members of a fund-holding practice which was a residual fund-holding practice in preparing annual accounts of that practice for the financial year 1999-2000, which may include - 

(a) payments to employees or former employees of the residual fund-holding practice;

(b) payments to either - 


(i) a former member of the residual fund-holding practice, or

(ii) a registered medical practitioner to provide general medical services to the patients of the former residual fund-holding practice who is engaged in preparing those accounts;



(c) auditor's fees;

(d) payments relating to computers and information technology.

    (2) The Health Authority may also second any of its officers or employees to assist the former members of a residual fund-holding practice with the preparation of the annual accounts of the fund-holding practice for the financial year 1999-2000, in which case it shall meet the cost of such secondment.

    (3) The Health Authority may discharge its liability to meet the costs incurred in accordance with paragraph (1), in whole or part, by discharging the liability of the former members of the residual fund-holding practice to any other person.

Rights and liabilities remaining with former members
     6.  - (1) Subject to paragraphs (2) and (3), any liability which did not become enforceable against the Health Authority in accordance with article 3, shall nevertheless be paid for by the Health Authority if the liability - 

(a) is one which falls within article 3(2); or

(b) is incurred on or after 1st April 2000 pursuant to a written consent granted before that date.

    (2) The Health Authority shall be liable to pay for a liability of the former members of the fund-holding practice under paragraph (1) up to the lower of any limitation on the sum to be applied set out in the written consent or in paragraphs (3B) and (3C) of regulation 25[12] of the 1996 Regulations as those paragraphs had effect on the date the Health Authority consent was granted.

    (3) Where the former members of a fund-holding practice become aware of any claim relating to a liability falling within paragraph (1), they shall - 

(a) notify the Health Authority of the claim; and

(b) take such action as the Health Authority shall reasonably require to avoid, dispute, resist, compromise, defend, or appeal against the claim.

(a) where there is provision for the relevant contingency in an agreement under paragraph (6), the portion of the former member shall be dealt with in accordance with that agreement;

(b) where there is no agreement under paragraph (6) or such an agreement makes no provision for the relevant contingency, the portion of the former member shall be at the disposal of the Health Authority and article 8 shall not apply to that portion.

    (9) In this article, "apportionment date" means - 

(a) in the case of former fund-holding practices which were not recognised fund-holding practices on 31st March 2000, the date on which the former fund-holding practice ceased to be recognised as a fund-holding practice; and

(b) 31st March 2000, in the case of residual fund-holding practices which were still recognised on that date.

Influence over final balance
     8.  - (1) Subject to the remaining paragraphs of this article, the Health Authority shall apply any final balance for the former members of a fund-holding practice as follows - 

(a) for the purposes specified in a balance agreement between itself and the former members, or

(b) where no balance agreement has been entered into before the agreement date, in discharging liabilities incurred by the former members of the fund-holding practice for the purposes specified in paragraph (4) but only up to a maximum for each financial year of £90,000, such sum to be made available - 


(i) except where paragraph (9)(b) applies, in each of the financial years 1999-2000 to 2002-2003;

(ii) where paragraph (9)(b) applies, in each of the financial years 2000-2001 to 2002-2003, with the sum for the financial year 1999-2000 added to the sum made available in any of those years.

    (2) Except where there is still a balance agreement in force on that date, where any part of the final balance is unspent on 1st April 2003 the Health Authority shall no longer be required to spend it in discharging liabilities incurred by the former members of a fund-holding practice.

    (3) The final balance shall not be applied in accordance with either sub-paragraph (a) or (b) of article 8(1) until - 

(a) except in the case of the former members of a fund-holding practice which was no longer recognised as a fund-holding practice on 1st April 1998, the annual accounts for the financial year 1998-1999, and in the case of residual fund-holding practices, the financial year 1999-2000, have been submitted to the Health Authority and audited, in accordance with articles 9 and 10; and

(b) where apportionment of the final balance is necessary in accordance with article 7, the Health Authority has sent out the notices required by article 7(4).

    (4) The final balance may only be applied for one or more of the following purposes - 

(a) the purchase of material or equipment which - 


(i) is to be used for the treatment (including diagnostic treatment) of patients of the former members of the fund-holding practice, or

(ii) enhances the comfort or convenience of patients of the former members of the fund-holding practice,



(b) payments to - 



(i) dieticians, or

(ii) counsellors providing advice on diet, alcohol consumption, smoking or other personal health matters,



(c) the purchase of computers, including hardware and software,

(d) payments to staff other than salaries and other payments permitted by paragraph 52(3) of the Statement published in accordance with regulation 34 of the National Health Service (General Medical Services) Regulations 1992[13],

(e) initiatives to improve prescribing,

(f) payments for - 



(i) the purchase of health education materials or equipment,

(ii) advice on the dissemination of health education to patients,



(g) in relation to any premises from which the former members carry on their practice - 



(i) improvements to the premises including alterations to or decoration of the premises and the purchase of furniture and furnishings,

(ii) building an extension,



     where the proposed improvement or extension is consistent with any investment plan adopted by the Health Authority which exercises functions in relation to the patients of the former fund-holding practice.

    (5) Subject to paragraph (7), where a former member of a fund-holding practice withdrew from the fund-holding practice before 1st April 1999 in circumstances other than death or retirement and a proportion of the savings of the fund-holding practice was transferred to the Health Authority in accordance with regulation 9(5) of the 1996 Regulations[14], any such savings which remain with the Health Authority on 1st April 2000 may be spent for any of the purposes set out in paragraph (4) which the former member may require and paragraph (1) shall not apply.

    (6) Subject to paragraph (7), where savings of a fund-holding practice from which recognition was removed were transferred to a Health Authority in accordance with regulation 17 of the 1996 Regulations, any such savings which remain with the Health Authority on 1st April 2000 may be spent for any of the purposes set out in paragraph (4) which the former members of that practice may require, and paragraph (1) shall not apply.

    (7) Notwithstanding paragraphs (5) and (6) and the repeal of the fund-holding provisions, where the Health Authority has already entered a commitment to spend savings pursuant to regulation 9(5) or 17(3) of the 1996 Regulations for one of the purposes specified in regulation 25 of those Regulations, it may apply those savings for that purpose and this article shall not apply to those savings.

    (8) Where the final balance of a former fund-holding practice is apportioned in accordance with article 7, and the relevant Health Authority transfers to another Health Authority an amount representing the portion of a former member of that fund-holding, it shall be the Health Authority which receives that portion which shall apply that final balance in accordance with paragraph (1) and enter any balance agreement with that former member.

    (9) In this article, "agreement date" means - 

(a) in the case of former members of fund-holding practices other than residual fund-holding practices, 30th April 2000,

(b) in the case of former members of fund-holding practices which were residual fund-holding practices, 1st April 2001.

[2] 1977 c.49.back

[3] 1990 c.19.back

[4] S.I. 1996/706, amended by S.I. 1997/747, 1997/1678, 1998/693 and 1999/261.back

[5] S.I. 1999/261.back

[6] 1986 c.53.back

[7] Sections 14, 15, 16 and 17 of the National Health Service and Community Care Act (c.19)("the 1990 Act") were amended by, respectively, paragraphs 73, 74, 75 and 76 of Schedule 1 to the Health Authorities Act 1995 (c.17) and, for sections 14 and 15, paragraph 65 of Schedule 2 to the National Health Service (Primary Care) Act 1997 (c.46); all of those sections were repealed by Health Act 1999 (c.8), section 1, which was brought into force by The Health Act 1999 (Commencement No. 2) (Wales) Order 2000, S.I. 2000/1026 (W.62) (C.26).back

[8] Section 29 of the National Health Service Act 1977 (c.49)("the 1977 Act") was extended by the Health and Medicines Act 1988 (c.49), section 17; and amended by the Health Services Act 1980 (c.53), sections 1 and 7 and Schedule 1, paragraph 42(b); by the Health and Social Services and Social Security Adjudications Act 1983 (c.41), Schedule 6, paragraph 2; by the Medical Act 1983 (c.54), section 56(1) and Schedule 5, paragraph 16(a); by S.I. 1985/39, article 7(3); by the Health Authorities Act 1995 (c.17), Schedule 1, paragraph 18; and by the National Health Service (Primary Care) Act 1997 (c.46), Schedule 2, paragraph 8.back

[9] Regulation 25(1) was amended by S.I. 1999/261, regulation 22. Regulation 25(2) was amended by S.I. 1997/747, regulation 14; by S.I. 1998/693, regulation 11 and was amended with savings by S.I. 1999/261, regulations 22 and 29 respectively.back

[10] S.I. 1993/567; the relevant amending instrument is S.I. 1995/693. Those instruments were revoked by S.I. 1998/706.back

[11] Section 15(1B) of the 1977 Act was added by section 12(1) of the 1990 Act and substituted by the National Health Service (Primary Care) Act 1997 (c.46), Schedule 2, paragraph 4(3); subsection (1C) of the 1977 Act was added by the Health Authorities Act 1995 (c.17), Schedule 1, paragraph 6.back

[12] Paragraphs (3B) and (3C) of regulation 25 were inserted by S.I. 1998/693, regulation 11(4). Paragraph (3B) was amended by S.I. 1999/261, regulation 22(7), and paragraph (3C) was substituted by S.I. 1999/261, regulation 22(8).back

[13] S.I. 1992/635, to which there are amendments not relevant to this article.back

[14] Regulation 9(5) of the 1996 Regulations was amended by S.I. 1997/747, regulation 7 and 1998/693, regulation 4. Paragraphs (2) to (6) of regulation 9 were revoked by S.I. 1999/261, regulation 13, but by virtue of regulation 29(1) of that instrument continue to apply where a member of a fund-holding practice withdrew from that practice in circumstances other than death or retirement before 1st April 1999.back

[15] Section 98(2B)(c) of the 1977 Act was inserted by the National Health Service and Community Care Act 1990 (c.19), section 20(2)(b), and amended by the Health Authorities Act 1995, section 2(1) and Schedule 1, paragraph 50(c);back

[16] Regulation 11 was amended by S.I. 1999/261, regulation 14.back

[17] 1998 (c.18).back

[18] The Health Service Commissioners Act 1993 (c.46) ("the 1993 Act"), as amended by the Health Service Commissioners (Amendment) Act 1996 (c.5). Reference to section 3(1B) of the 1993 Act was omitted by the Health Act 1999, section 65(1) and Schedule 4, paragraph 85 as brought into force by the Health Act 1999 (Commencement No. 2) (Wales) Order 2000 (S.I. 2000/1026 (W.62)(c.26)).back

[19] S.I. 1992/635. Paragraphs 47A and 47B were inserted by S.I. 1996/702, regulation 5.back

[20] Section 15(4) of the 1990 Act was substituted by the Health Authorities Act 1995 (c.17), Schedule 1, paragraph 74(d) and amended by the National Health Service (Primary Care) Act 1997, Schedule 2, paragraph 65(5).back

[21] Paragraphs (4A) to (4C) were inserted by S.I. 1997/1678, regulation 3(2).back

[22] Paragraph (5) was amended by, and paragraph (6) was inserted by, S.I. 1997/1678, regulation 3, paragraphs (3) and (4) respectively.back

[23] Regulation 25 was amended by S.I. 1997/747, 1997/1678, 1998/693 and 1999/261.back

[24] Regulation 26 of the 1996 Regulations was amended by S.I. 1999/261, regulation 24.back

[25] 1998.c.38.back