Private practice profits leave NHS behind

2015 saw the gap between the two widen considerably – an average private practice making a profit of £140, 129 per principal, compared to an average NHS practice profit of £129, 265. Indeed, private practices have seen an increase in fee income of over eight per cent compared to 2014. Comparatively, NHS practices have been relatively static.

Ian Simpson, chartered accountant and a partner in Humphrey and Co, which carries out the statistical exercise said, “All types of practice have seen sustained recovery in profitability. The typical private practice profit exceeds typical NHS practice profit by approximately £10,000 and this is likely to be due to private practices having greater control over their income than NHS practices. Costs seem to be static across all practices.”

Associates’ profits have been flat lining for over a decade now. Average profit in 2015 (£68,024) was almost identical to that of 2014 (£68,544) – only a slight decrease (approximately £500), likely to be due to increases in insurance and subscription costs.