delete The Primary Medical Services (Sale of Goodwill and Restrictions on Sub-contracting) Regulations 2004
These Regulations, effective April 2004, prohibit doctors (GMS, PMS, and APMS contractors with registered patient lists) from selling the goodwill of their medical practices. They also impose anti-avoidance restrictions preventing sub-contracting of essential services to companies formed to circumvent the goodwill sale prohibition, with contract termination provisions for breaches. The regulations amend the GMS Contracts Regulations 2004 and PMS Agreements Regulations 2004 to include these restrictions.
The goodwill sale prohibition is a taking of doctors' private property rights - the goodwill of a medical practice represents years of work, reputation, and patient relationships built by the practitioner, yet they cannot realize this value upon sale. This reduces incentives to build valuable practices, distorts the market for medical practices by allowing sales only at asset value, and creates barriers to new entrants who cannot purchase existing goodwill. The sub-contracting restrictions further limit doctors' ability to structure efficient businesses. While protecting incumbent practitioners from competition, these regulations harm patients by restricting supply and choice in primary care. The underlying policy goal of preventing commercialization of patient lists could be better achieved through information governance rules rather than outright prohibition of goodwill sales.