Running A GP Practice Is The Same As Running A Business Most people never give any consideration to how their GP gets paid, but simply assume that he or she earns a lot of money, and certainly, this can be true. Indeed, salaried GPs earn from £58,808 to £88,744 depending upon the length of service and experience.
However, partner GPs are running a business, and like any other business, the amount that they earn will depend upon the profits of the business. According to Dr. Neil Paul (https://www.drneilpaul.blog/how-gps-are-paid/), there is an impression that GPs have a pot of money like an expense account from which they can draw cash to spend. That is not the case and is why he says that he walks around his practice turning the lights off because every penny spent is one less earned.
The vast majority of practices are GMS or PMS and are owned by a partnership of doctors who are qualified as GPs. There is a lot of guidance on who can hold what type of contract, and while solicitors and accountants have moved over to LLPs, GPs appear to have been prevented from undertaking this potentially liability-reducing measure, although nobody has explained why this should be.
It is true that some GP practices are run by limited companies, the directors of which are the GP and his family members, but in fact most are partnerships and that means that each partner is liable for any losses that are incurred. They also split the profits which are how they earn their money. So, in the same way as any other business, profit = income – expenses.