AAGBI18.09 Anaesthetic Practice in The Independent Sector
AAGBI18.09 Anaesthetic Practice in The Independent Sector
Anaesthetic practice
in the independent
sector 2018
September 2018
Anaesthetic practice in the
independent sector 2018
Membership of the working party
Dr Guy Jackson Consultant Anaesthetist, Royal Berkshire NHS Foundation Trust, Reading,
UK; Council/Board Member and Chair of the Independent Practice
Committee, Association of Anaesthetists; Partner, Berkshire Private
Anaesthesia, Reading
Dr Paul Clyburn Consultant Anaesthetist, University Hospital Wales, Cardiff, UK; Immediate
Past President, Association of Anaesthetists
Dr Ben Greatorex Consultant Anaesthetist, Raigmore Hospital, Inverness, UK; Prior Elected
Trainee Committee Member. (Trainee Committee representative at start
of Working Party)
Dr Rowan Hardy Anaesthesia and Intensive Care Consultant, Royal United Hospitals
Bath NHS Foundation Trust, Bath, UK; Partner, The Bath Anaesthetic Group
LLP; Member of the Independent Practice Committee, Association of
Anaesthetists
Dr Richard Morey Consultant Anaesthetist, King’s College Hospital NHS Foundation Trust,
London, UK; Co-opted Member, Independent Practice Committee,
Association of Anaesthetists
Dr Jason Easby Consultant Anaesthetist, James Cook University Hospital, South Tees NHS
Trust, Middlesbrough, UK
Contributions from:
Introduction 4
Competition and Markets Authority 5
Good practice 6
Republic of Ireland 20
Appendices
London 23
Billing guidance 25
© 2018 This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivs 4.0
International License CC BY-NC-ND
Declaration of interests
Since the last guideline there has been a rapid growth in NHS-funded patients within the
independent sector. The term ‘private practice’ is probably better replaced by ‘independent
practice’ to more accurately reflect current activity. The term ‘private practice’, historically, often had
negative connotations for some as being closely associated with private medical insurance. Now
many anaesthetists find themselves delivering clinical care in independent hospitals funded from a
variety of sources – NHS, private medical insurance and patient self-pay.
An investigation into private healthcare by the Competition and Markets Authority began in 2012. It
will have significant implications for anaesthetists, both financially and organisationally.
Brief history
Before the formation of the NHS in 1948, independent practice was the main source of income for
anaesthetists in the UK. With the advent of the NHS, a number of provident societies merged to
form the British United Provident Association (BUPA) to preserve freedom of choice in healthcare
and to help patients afford choice in terms of where, when and by whom they were treated. BUPA
had some 80% of the insurance market in the 1950s, and private practice represented about 6% of
acute medical activity, largely concentrated in the major metropolitan centres. At this time, insurers
provided patients with a single combined benefit towards anaesthetist’s and surgeon’s fees, and
it was not until 1975, following successful representations by the Association, that this was divided
into separate surgical and anaesthetic benefits.
In 1975, the health minister Barbara Castle closed all pay beds in NHS hospitals, and this resulted in
a major expansion of independent hospital facilities, rapidly doubling the number of private beds.
BUPA purchased its first group of hospitals, and businesses from the USA also invested heavily to
establish other hospital providers and hospital groups. This considerably improved the quantity and
quality of private facilities available. There has been further expansion in the last decade and this
trend looks to continue with other hospital sites planned with new models of working to address
the increase in NHS funded work. To year end 2015, the market value of UK private healthcare was
around £6.05 billion, with specialist revenue between £1.6–1.8 billion. NHS funded patients make
up about 10% of this total (£547 million). Activity relating to patients with private medical insurance
accounts for about £4.7 billion and there are roughly 4 million private medical insurance policies (3
million corporate, 1 million individual). About 19% of the market is self-pay. Independent healthcare
continues to be a growing market with the volume of self-pay income expected to grow. (BMA
Private Practice conference 2017*).
*https://www.laingbuisson.com/wp-content/uploads/2016/10/PrivateAcute_4ed_market_briefing.
pdf (accessed 13/05/2018)
Traditionally, working in ‘private practice’ was simply seen as a way of increasing income in addition
to NHS income and largely involved caring for patients with private medical insurance or self-
funding (‘self-pay’). Over recent years there has been an increase in NHS funded and self-pay work.
There have always been anaesthetists who practice exclusively as independent practitioners but
recently there has been an increase in this activity as independent hospitals look towards different
models of medical cover, particularly for NHS funded patients. As with any activity, there are pros
and cons to undertaking anaesthetic practice within the independent sector. The advantages
include additional income (if also undertaking work within an NHS hospital), some increased clinical
and managerial freedom and an opportunity to develop closer relationships with colleagues and
patients. The disadvantages include the additional time spent in practice, often out-of-hours and
antisocial working, and an increased need to be flexible and available. Consultants will normally
need to be available/on-call for their patients for a period of time postoperatively and will work
more often on their own. If caring for patients with private medical insurance or who are self-funded,
the doctor will be required to pay a higher medical indemnity subscription, have more complicated
accounts, arrange for the billing of patients and must make sure that their independent practice
does not conflict with their NHS contract.
Anyone considering undertaking anaesthetic practice within the independent sector should
consider the matter fully before embarking on it. Independent practice income can be variable,
and the independent practitioner should always put clinical governance and cooperation with
colleagues ahead of financial gain.
• 2016 CMA announces intention to bring into force the revised remedies
o Fee remedy via PHIN
o Infrastructure remedies
Good practice
Care provided to patients in the independent sector should be to the same standards as for NHS
patients. Therefore, all the guidance documents and recommendations that set standards of care for
NHS patients should be presumed to be valid for all patients. Guidance documents for anaesthesia
are issued by the Association, the General Medical Council (GMC), the Royal College of Anaesthetists
(RCoA), the British Medical Association (BMA) and many other organisations. The Care Quality
Commission (CQC) has responsibility for monitoring and inspecting all organisations providing care
to ensure standards are being met.
The National Institute for Health and Care Excellence (NICE) also produces recommendations, most
of which are relevant to the independent sector. The websites of all these bodies are given in the
Resources Section. The anaesthetist in independent practice should be well versed in all relevant
publications and national guidelines. Active membership of subspecialty societies is strongly
recommended in order to maintain current knowledge in the areas of practice conducted in both
public and independent sectors.
All doctors should undergo regular appraisal and revalidation in line with national recommendations
and standards. Processes for appraisal vary locally but if the anaesthetist holds an NHS contract,
appraisal is usually undertaken within the NHS hospital. Practice within the independent sector
should be addressed and contact between all hospitals recommended during the appraisal process
to ensure all areas of practice are covered.
If the anaesthetist works solely in the independent sector, he or she should make arrangements to be
appraised by a suitably trained and certified colleague, in line with GMC guidance. The anaesthetist
should maintain appropriate continuing professional development and this will be reflected in the
appraisal.
Anaesthetists should only practise in independent hospitals in which they have been awarded
Admitting Rights or Practising Privileges. They should conform to the regulations and guidelines
adopted by the independent hospital. The independent hospital has the responsibility for ensuring
that the Medical Advisory Committee has approved these regulations and guidelines, and that all
anaesthetists are informed of the regulations and guidelines relevant to them. The hospital should
make the anaesthetist aware of its disciplinary procedures. The anaesthetist should be prepared
to share their appraisal documentation with the independent hospital. Some hospitals request a
summary, while others request the full appraisal document.
An anaesthetist should only undertake cases in the independent sector for which he or she is
appropriately trained, experienced and in ongoing practice. Anaesthetists should keep a logbook
of cases done in the independent sector and should be prepared to provide the information
contained therein to appropriate supervising bodies.
The anaesthetist has an ongoing clinical responsibility to their patients that continues into the
postoperative period. However, this responsibility has limits, and we suggest that the anaesthetist
makes the limits clear to the surgeon, other healthcare professionals involved in the patient’s care
and the independent hospital management. Such limits may be:
• Until postoperative high dependency or intensive care is no longer needed or is handed over
to an intensivist or another anaesthetist
• For patients not requiring intensive or high dependency care, the limits of the anaesthetist’s
care may be when the patient is:
o Awake and discharged from the recovery room
o Physiologically stable and satisfactory
o Free from significant postoperative pain, nausea and vomiting
o Not receiving intravenous opioid treatment, e.g. patient-controlled analgesia
o Not receiving neuraxial or peripheral local anaesthetic infusions
o Free from the short-term effects of peripheral or neuraxial nerve blocks
Any care provided by an anaesthetist beyond these limits may be separately chargeable if the
patient has been warned of this before treatment. It is reasonable to expect an anaesthetist to
be available for a patient for the period during which the early and predictable complications of
surgery may occur. However, we suggest that this period should not normally exceed 24–48 hours
and should certainly cease at the discharge of the patient from hospital.
For anaesthetists who work in both the NHS and the independent sector, there will be times when
the demands of these two practices will seem to clash. The 2003 Consultant Contract is specific
about the conduct expected of an NHS consultant with regard to independent practice. A copy of
the contract and specific guidance can be found on the BMA website. The following general points
are worthy of consideration:
• Independent practice should not normally be conducted during contracted NHS hours but may
on occasion be acceptable provided it causes minimal disruption and has the support of both
colleagues and managers
• Scheduled practice in the independent sector should not normally be undertaken when on-call
for NHS patients. However, if this practice is performed in the consultant’s base NHS hospital,
this may be acceptable to colleagues and managers
NHS England has also recently issued guidance about the potential for conflict of interest when
considering clinical care. This came into force on 1 June 2017 (Managing Conflicts of Interest in the
NHS. Guidance for staff and organisations). This guidance covers many potential conflicts but with
regards to independent practice it states:
*Hospital consultants are already required to provide their employer with this information by virtue of
Para. 3 Sch. 9 of the Terms and Conditions – Consultants (England) 2003. https://www.bma.org.uk/-/
media/files/pdfs/practical%20advice%20at%20work/contracts/consultanttermsandconditions.pdf
• Clinical staff should (unless existing contractual provisions require otherwise or unless emergency
treatment for private patients is needed):
o Seek prior approval from their organisation before taking up private practice
o Ensure that, where there would otherwise be a conflict or potential conflict of interest,
NHS commitments take precedence over private work**
o Not accept direct or indirect financial incentives from private providers other than those
allowed by CMA guidelines
o Hospital consultants should not initiate discussions about providing their private
professional services for NHS patients, nor should they ask other staff to initiate such
discussions on his or her behalf**
**These provisions already apply to hospital consultants by virtue of Paras. 5 and 20, Sch. 9 of the Terms
and Conditions – Consultants (England) 2003
This guidance, along with the NHS contract of employment will guide local arrangements for
undertaking independent practice in addition to NHS employment. Commonly, additional
programmed activities will be offered to the NHS organisation and all work should be included in any
agreed job plan.
Admitting rights
Before you can work in an independent hospital, you will need to obtain what are variously known as
admitting rights or practising privileges. All independent hospitals should have a Medical Advisory
Committee that comprises consultants of all subspecialties, one of whom will be the chairman.
The senior manager of the hospital should grant practising privileges to consultants who meet the
standards set by the Medical Advisory Committee. Practising privileges are not awarded by right. The
independent hospital will provide you with the necessary application forms on request. It may be a
good idea to make an appointment to meet with the senior manager of the hospital before seeking
practising privileges. Take advice on this from a colleague who already works in the hospital. An
individual hospital’s requirements for the award of practising privileges might vary but are likely to
include:
• A curriculum vitae
• Documentary evidence of relevant qualifications and completion of subspecialty training
• Evidence of appropriate GMC registration
• Proof of membership of a medical defence organisation (MDO)
• Occupational health requirements such as evidence of hepatitis B immunity
Some of these documents will need to be updated annually, and you should expect the hospital
to ask for ongoing evidence that you fulfil their requirements for the maintenance of practising
privileges.
PMIs have varying requirements for recognition of practitioners and may involve much of the
documentation mentioned already. Recognition is a requirement before providing care and hence
payment. Recently some PMIs have included a contracted agreement that any newly recognised
practitioner’s professional charges lie within the organisations schedule of fees. Consultants already
recognised by a PMI prior to this requirement may charge a fee above the fee maxima, thereby
presenting the patient with a ‘shortfall’ payment. Consultants not on these terms are being asked
by some PMIs to consider signing up to these fee requirements. The argument being that PMIs
might direct patients towards practitioners who are fee assured or, in the case of surgeons, towards
those who are not only fee assured but who work with fee assured anaesthetists. The Association
and many other organisations have challenged this new arrangement and do not agree with the
concept of the PMI dictating a maximum fee, insisting that the contract is between the doctor and
patient, not between PMI and the doctor.
Chartered accountants
All consultants conducting independent practice should seek and heed advice from an accountant
with experience in medical practice conducted in the independent sector. Accountants will provide
invaluable advice on billing, banking, taxation and expenses. They might also be very helpful when
planning pensions and eventual retirement from both NHS and independent practice. The fee
that an accountant charges for work done that relates to independent medical practice is a tax-
deductible expense.
Billing
The keeping of accurate records is the key to efficient billing. You should keep a record of the
following for every patient you treat:
• Name
• Address
• Telephone numbers
• Date of birth
• Method of remuneration
o Insurance details (PMI, registration number, authorisation number)
o Self-pay
o NHS
• Date of procedure
• The hospital at which the procedure was performed
• Surgeon (if any)
• Procedures performed (both narrative and appropriate codes)
• Any unusual occurrences or circumstances
A logbook or database that contains these details will obviously contain confidential information.
Electronic records come under the terms of the Data Protection Act, and appropriate registration
and data protection are required. Further information can be found via the Information
Commissioner’s Office. A secure backup of all data should be kept. Many consultants starting in
independent practice choose to do their own billing and keep their own accounts. The consultant
should keep precise and careful records of the date and amount billed, and the date and amount
received. Commercial software packages are available that will facilitate this process. However, as
practice volumes increase, many opt to pay others to do their billing and financial record keeping.
Data protection
The GDPR (General Data Protection Regulation) came into force on 25 May 2018. It introduces
wide-ranging and significant changes to UK data protection legislation. Further information can be
found via the Information Commissioner’s Office (https://ico.org.uk/for-organisations/guide-to-the-
general-data-protection-regulation-gdpr/)
Setting fees
Each consultant should determine their own fees. Agreeing with a group of local consultants to
charge the same fee as others can be considered anti-competitive and should be avoided unless
trading as a partnership with an established legal identity. If there is doubt about the trading status
of a group of anaesthetists, expert legal advice should be sought. The penalties for breaking
competition law are severe.
Banking
Take advice from your accountant on how to manage your bank accounts. Most consultants who
conduct independent practice maintain a separate bank account that is wholly dedicated to their
income and expenditure relating to their independent practice. You should keep a full and accurate
record of all payments into this account and all payments made from it.
Tax
Never forget that you will have to pay tax on the money that you have earned, so take advice from
your accountant. Many wise anaesthetist’s ring-fence 40–50% of their independent practice income
in a separate account so that they always have the money available to pay the tax when the demand
inevitably arrives twice a year.
Every year, a number of doctors are investigated by HM Revenue and Customs. Most are chosen
at random, some are chosen because they have drawn attention to themselves in some way.
This could include but is not limited to; unusual expenses, late payment of tax demands and
late submission of annual tax return. A tax investigation is time-consuming and costly for the
individual concerned. It is possible to take out an annual insurance policy to cover the costs of an
investigation; this is worth discussing with your accountant. Such policies usually only pay out when
the subsequent investigation fails to reveal any inaccuracies on behalf of the consultant.
With the recent increase in NHS funded patients in the independent sector, the proportion of
patients funded by private medical insurance has fallen. For privately insured patients we must
No organisation can set consultants’ independent practice fees. If any membership organisation
such as the Association were to attempt this, it would attract unwelcome interest from the CMA. It is
for the individual consultants to determine their own fees themselves.
It is the Association’s view that the individual anaesthetist should be free to set their fees according
to a variety of factors that he or she may feel are pertinent. Such factors might include the following
but these are not currently recognised by PMIs in general:
• The time taken to provide the service, including pre-operative, intra-operative and
postoperative care
• The training, qualifications and experience necessary to provide medical care safely
• The complexity of the medical care provided
• The rarity of the anaesthetic skills necessary to provide safe and effective care
• The risk to the patient of the procedures being performed
• The time of day and day of the week that the service is provided and the degree of surgical
urgency
• The risk to the anaesthetist of providing the service
Recent guidance from the CMA recommends that efforts are made to inform privately insured
and self-pay patients about any fees before consultation and to do so in writing. This is often
achieved by email or via practitioner websites. PHIN aims to facilitate this process. It states it
is ‘an independent, government-mandated source of information about private healthcare,
working to empower patients to make better-informed choices of care provider. It is a not-for-
profit organisation that exists to make more robust information about private healthcare available
than ever before, and to improve data quality and transparency. PHIN’s vision is that all patients
considering private healthcare will have access to trustworthy, comprehensive information on both
quality and price to help them make their decisions.’
There is no national fee structure or advice for anaesthetist remuneration for NHS funded work in
the independent sector. Local arrangements are common and the Association is aware of local
disputes about such remuneration arrangements. As stated previously, the Association is unable
to suggest fee schedules but proposes that local arrangements are negotiated and made clear
prior to undertaking NHS work in the independent sector. It is worth noting that in the NHS all
consultants, regardless of specialty, are paid identical rates per session. This should be considered
when negotiating fees for NHS patients cared for in the independent sector.
Access to NHS patients for the independent sector varies across the country and across each home
nation. Progressive government policies and initiatives have become more inclusive towards the
independent sector, embracing it as part of the solution rather than the problem; the formation
of Independent Sector Treatment Centres (ISTCs), patient choice and extended choice have been
introduced to improve public sector capacity issues.
Regulation
Regulation of healthcare in England comprises two main elements: regulation of the quality and
safety of care offered by healthcare providers, currently undertaken by the CQC, and regulation of
the market in healthcare services, currently the responsibility of Monitor (in relation to foundation
trusts) and the Department of Health.
From an anaesthetist’s perspective, NHS work comes in many forms and includes:
ISTCs are purpose built premises, delivering healthcare only for NHS patients. They do not have
access to private patients (PMI or self-funding). Their numbers and contracts have declined in
recent years. Clinical Commissioning Groups contracts with independent providers allow ISTCs to
compete for contracts locally. The rationale behind such centres was to reduce waiting times for
patients by separating routine elective surgery and tests from emergency work.
o Medical indemnity: Usually indemnified via the NHS Litigation Authority (NHSLA).
However, it is recommended that this is clarified with the local organisation
o Fees: Anaesthetic fees are variable. Increasingly these are less negotiable nationally,
with many independent hospital fees dependent on HRG Episodes (HealthCare
Resource Group) and BPT (Best Practice Tariff) (for example day-case vs. inpatient care),
and negotiated locally
Since the advent of electronic booking in 2005, patients have been given the choice of hospital
outpatient appointment by their GP. In 2007, this scope was expanded to include any accredited
provider, extending NHS patient treatment into the independent hospitals. Therefore patients
increased their options to an ‘Extended Choice Network’. Successful application through a tender
NHS Foundation Trusts nationally have come under increased pressure, with tighter targets and
worsening capacity issues, both for theatre space and bed occupancy. Currently there is a drive
both nationally and locally for the independent sector to provide additional capacity.
• Waiting list initiative: Displacement of patients from the NHS Trust to the independent provider,
usually to meet waiting time targets. Anaesthetists commonly work independently or as a
group.
o Medical indemnity: Work may not be indemnified via NHSLA. It is recommended that
this is clarified with the local organisation
o Fees: Fees locally agreed, time based or case based (dependent on tariff vs. a
proportion of set PMI benefit)
• Scheduled Trust work: Displacement of whole theatre teams, or the anaesthetist and surgeon to
the local independent hospital (often under current National Consultant Contract T&C), usually
to meet waiting time targets and limited on-site theatre capacity.
o Medical indemnity: Work usually indemnified via NHSLA
o Fees: Fees locally agreed, often time based and linked to National Consultant contract
T&C
It is therefore essential for all anaesthetists, especially those undertaking independent practice,
which includes PMI funded and patient self-funded, to be a member of a MDO or have some other
form of appropriate insurance cover. This indemnity will cover clinical negligence claims, complaints
procedures, Good Samaritan acts, advice on legal and ethical dilemmas arising from professional
practice, GMC enquiries, disciplinary procedures, inquests and Fatal Accident Inquiries, and police
investigations arising from professional practice. Absence of protection will leave the anaesthetist
exposed in the event of a claim, and this may lead to professional and financial ruin.
There are three main MDOs in the UK – the Medical Defence Union, the Medical Protection Society
and the Medical and Dental Defence Union of Scotland. All three are mutual companies and do
not have legally binding contracts with their subscribers. Their benefits are discretionary on the
decision of their boards. In choosing suitable cover, one should carefully consider not just the actual
costs but also the detail of the benefits and services offered by the company. The subscriptions for
Policies with commercial companies are on a ‘claims made’ basis. This means that the insured
doctor is only covered for claims arising from incidents that both occur and are reported whilst
the policy is in force. When the policy expires, so does the cover unless a run-off payment is made.
The mutual organisations offer ‘occurrence or incident-based’ schemes that give protection for
claims arising from incidents that occurred during the subscription period no matter when they
are reported, even if it is many years after that subscription had ceased. These provide ongoing
protection at retirement or death – the latter prevents one’s estate being liable for claims. It is worth
noting that some of the three main MDOs have introduced the option of taking out ‘claims made’
indemnity rather than the traditional ‘occurrence based’.
It is not possible to cover all aspects of indemnity in the NHS or independent practice in the limited
confines of this guidance and some aspects are complex. Readers are advised to consult the
relevant defence organisations for further information pertaining to their personal circumstances;
see the web addresses given in the Resources section.
Pain medicine
Independent practice in pain medicine should only be undertaken by those with the appropriate
training and experience. In most cases this will mean that the consultant holds or has held a
substantive NHS consultant post that includes regular work in this subspecialty.
Standards of practice
There should be no difference in the standard of care provided to NHS or private patients. These
standards are set out in The Good Pain Medicine Specialist published by the Faculty of Pain
Medicine in 2014. Similarly, clinical pain medicine decision-making and case-mix should be similar
for an individual consultant in both public and independent sectors. The only exception to this
would be differences in care relating to the form of therapies funded by the NHS and PMIs.
Clinic facilities
Clinics should be held in an environment in which access to adequate and appropriate support
facilities is available as set out in The Good Pain Medicine Specialist. This should include adequate
facilities for consultation and examination of patients, chaperone facilities, resuscitation equipment
and access to appropriate clinical investigations. Facilities for more complex investigations and
scans should be available but not necessarily present on site.
Interventions
If any form of intervention is undertaken, suitable sterile conditions, equipment and nursing
support must be available, along with recovery facilities if sedation or anaesthesia is given. Major
interventions may demand operating theatre facilities with trained nurses. Appropriate radiological
imaging modalities are required, such as an image intensifier and ultrasound. Patients should follow
a defined and documented pathway of pre-operative assessment, informed consent, procedure,
recovery, ward care and discharge.
On-call cover
A consultant will need to be on-call and available for their own patients throughout any hospital
admission. They will also need to provide some form of availability at other times for their patients
who are undergoing treatment. It is advisable to arrange cross-cover with one or more colleagues in
the same specialty. This allows adequate cover for patients during holidays and other absences.
Multidisciplinary work
Although it is less usual for pain consultants in independent practice to run multidisciplinary clinics,
referral pathways to the relevant allied health professionals such as physiotherapists, occupational
therapists, psychologists and pharmacists should be available in order to provide appropriate
standards of care.
Fees
Fees should be set in accordance with the advice set out in ‘Billing and financial considerations’
above. Most PMIs provide schedules of benefit maxima for pain therapy procedures.
Indemnity
Consultants undertaking independent practice in pain medicine will require full indemnity from
their MDO, which should be informed of the exact nature of the consultant’s practice, i.e. the
relative proportions of the consultant’s income that are sourced from pain management and from
purely anaesthetic practice.
Intensive care
Patients may elect to continue to be fee-paying or to become an NHS patient if they are entitled
to receive free NHS care. If the patient is too sick to make a decision, then they remain a privately
funded patient in an NHS hospital until such time as they are competent to express their preference.
Under these circumstances, some PMIs will try to claim that, if the patient is entitled to NHS care,
they will no longer provide cover after such a transfer. Patients, or their next of kin, should be told
that this is not usually the case and they should be advised to contact their relative’s PMI to seek
confirmation of continued privately funded patient status.
If no retrieval contract has been agreed, it remains the responsibility of the independent hospital
to undertake the transfer of the patient. Such transfers must be prearranged in accordance with
Intensive Care Society guidelines, with the availability of appropriate monitoring and equipment.
Accompanying medical and nursing staff should have suitable training and experience in
transporting critically ill patients.
Accurate records of procedures undertaken and time spent treating patients should be kept in case
submitted accounts are questioned by the patients or their healthcare insurance companies.
Pre-operative assessment
Within NHS hospitals there has been huge growth in the provision of pre-operative assessment
and management by anaesthetists. This has not wholly been mirrored by similar expansions
within independent hospitals for privately funded patients. The Association Independent Practice
Committee fully supports the notion that care for privately funded patients should reflect advances
in practice within NHS funded hospitals. The expansion of anaesthetic-led pre-operative services
in the independent sector requires significant time and effort on behalf of the anaesthetic team
involved. Some PMIs have been slow to realise the importance and benefits of such pre-operative
assessment and management, and have failed to provide appropriate remuneration for this
service. The benefit schedules of most PMIs fail to provide appropriate fee codes for such work
and, at present, it remains for discussion and remuneration on an individual case-by-case basis
after consultation with both patient and PMI. The Association Independent Practice Committee
strongly urges the PMIs to embrace the advances in patient care that anaesthetic-led pre-operative
services provide and to remunerate anaesthetists accordingly. Until this is agreed nationally then it
remains for an individual anaesthetist to negotiate with the patient and PMI and decide whether it is
appropriate for the patient to proceed to surgery without a formal pre-operative assessment before
the day of surgery.
Many will find that an established group practice or partnership already exists and if their job plan
makes them attractive to the established group or they express an interest in becoming part of the
group, an invitation to join might be forthcoming after appointment. Within the specialties such as
anaesthesia, radiology and pathology, group practice or partnership is particularly attractive as a
result of the usually discrete episodes of direct patient responsibility.
For others there are attractions to working as an individual within the independent sector. Both ways
of working, along with the pros and cons are discussed below.
Single-handed practice
It is appreciated that there are many aspects of group practice that are favourable but these do not
necessarily apply to all anaesthetists practising independently. This is particularly relevant to those
working in large metropolitan cities and especially London.
Advantages
• Complete control over when to work, who to work with and where to work
• Complete financial control. Can employ whomever one wants to do administration and
secretarial work
• Financial advantages for husband/wives/partners. Either in administration or as anaesthetic
partnerships. May provide better options for incorporation as limited companies
• When established, can choose known surgeons with good reputations and low complication
rates
• Only responsible for complications arising out of own practice. No requirement to be available
to sort out other clinicians’ postoperative complications
• Can work as hard or as infrequently as you want. What You Work is What You Earn. Rewards are
potentially very high
• Able to set own fees
• Can also choose to work with on-call syndicates if wanted and available
• Independently responsible for the whole care of each patient from pre-assessment through to
discharge. Not reliant on others for decisions and management pathways
• Satisfaction of having built a true partnership/friendship with surgeon/s. A relationship where
both enjoy working together and rely upon each other’s expertise in ensuring the best possible
outcome for their patients
Disadvantages
• Potential surgical pressure to perform cases and the impact this can have on relationship with
such surgeons in your NHS practice
• Risk of operating outside area of competence/scope of practice
• Need to ensure additional provision for sickness at a financial cost
• Potential for decrease in appropriate work/life balance in the relentless pursuit of greater
financial gain
• Fear of loss of practice due to sickness/holiday or other unavailability
• Poor bargaining position in relation to the surgeons with independent hospitals leading to
poorer packages/relative income
• Fully self-employed so no work = no income
• May take longer to become established therefore early in career may have an inefficient
Working as a group can range from a loosely related group sharing certain duties or facilities, to
formal partnerships. The set-up of the group will determine the working practices within that group
with particular attention to fee structures in light of recent CMA rulings.
Chambers
This title has been borrowed from the legal profession in the UK. Here, following completion of
his or her training, a new barrister must find a seat or ‘tenancy’ in a set of chambers. Chambers are
groups of barristers and tend to comprise between 20 and 60 barristers. The term can equally be
used to describe any group of professionals who choose to work together and who share rent and
facilities such as the service of secretaries and other support staff. Most chambers offer a system
whereby the members contribute to these common expenses by paying a percentage of their gross
income. However, there is no profit-sharing as in a partnership (see below), there can be no joint
agreement on patient fees and individual members of the group keep the fees they themselves
earn beyond what they have to pay towards the chambers expenses.
Partnerships
This title has a much more significant legal meaning under UK law whereby a partnership is a type
of business entity in which partners share the profits or losses of the business undertaking in which
they have all invested. The shares may be equal (equity partnership) or fractional, based upon the
seniority or some other factor that varies only by the consent of all partners. A true partnership must
have a legally drafted partnership agreement signed by all partners and there should be regular
partnership meetings.
Generally, partners have an obligation of strict liability to third parties injured by the partnership.
Partners may have joint liability or joint and several liabilities depending upon circumstances.
The liability of limited partners is limited to their investment in the partnership, hence the term
Limited Liability Partnership. Without a legally drafted partnership agreement, the group acting
as a partnership will be regarded in law as a ‘sham’ partnership and will not benefit from the legal
advantages of a real partnership, such as the ability for all partners to charge the same fee without
an accusation of price fixing.
The key to the success of a partnership rests in a sense of mutual trust between partners so that
there is a feeling that the work is genuinely being shared equally. One important element in
achieving this feeling is the part played by the partnership manager who allocates work according
to the agreed partnership rules laid down in the agreement. Partnership administration can be
largely left to the salaried partnership manager who acts under the immediate direction of the
elected partnership chairperson. Larger partnerships may also choose to appoint a partnership
secretary and a treasurer, but the arrangements of the partnership executive are matters to be
decided by the members of the partnership with professional advice from their nominated legal
and financial advisors.
Since partners are jointly responsible for third party damage, one important item that must be
agreed at the onset is the individuals’ responsibility for medical indemnity insurance, which
should ideally be made an absolute obligation for continued membership of the partnership.
Some partnerships take on the responsibility of payment on behalf of the individuals to avoid any
inadvertent lapses.
Group practice
Group practice brings many benefits and advantages to patients, independent hospitals, surgeons
and anaesthetists, which advocates believe cannot be offered by an individual working alone.
Disadvantages
Republic of Ireland
This section is for consultants working in the Republic of Ireland (ROI). The other sections should be
read in conjunction as they apply broadly for private practice in the ROI, in particular the appendix
about the billing of patients. Specific areas and issues for anaesthesia private practice in the ROI are
outlined below.
Hospitals in the ROI are either public or private institutions. To attend a private hospital the patient
must have the appropriate health insurance plan for that institution or pay the hospital directly.
Patients presenting to public hospitals may have either a medical card, which provides for free
medical care, or can be admitted to public hospitals as a public patient for free (under the Health
Care Act 1970) or can be admitted as a private patient either from private rooms or elect to go
private from public outpatients. Once admitted as a private patient, they are liable for both hospital
and professional fees. These are reimbursed by an appropriate health insurance plan or through
direct payment by the patient.
In terms of the standards required to practice anaesthesia independently in the ROI, the Medical
Council states ‘Doctors with general registration may practise independently without supervision
but may not represent themselves as being specialists. Doctors with specialist registration may
practise independently, without supervision and may represent themselves as specialists.’
The College of Anaesthesiologists of Ireland and the National Clinical Programme in Anaesthesia
‘believes that only anaesthetists whose names are included in the Register of Medical Practitioners,
Specialists Division (Anaesthesia) of the Irish Medical Council, or who are eligible for inclusion,
should practise independently, that is, as consultants.’ Most private and public hospitals will only
employ an anaesthetist as a consultant if they are on or eligible for the Specialist Register.
The Irish Standing Committee states ‘All anaesthetics should be administered by or under the
supervision of a consultant anaesthetist.’
Private professional fees are mainly paid through health insurance plans with the consultant
choosing either to ‘fully participate’ or take a non-participating standard (lower) fee and invoice the
patient for any difference. This is known as balance billing. However a consultant can elect to have
no relationship with an insurer and deal completely with the patient. Most consultant anaesthetists
fully participate with all health insurers. Patients can elect to pay consultants and hospitals directly,
and are known as private cash paying. These numbers are small outside of aesthetic practice.
The main health insurance companies are VHi Healthcare with a 53% market share, Laya Healthcare
and Irish Life Health (22% each), and some other smaller companies mainly covering occupational
schemes. In 2015, 46% of the population had some form of private health insurance cover, down
from a peak of 51% in 2008.
As in the UK, neither the Association nor the medical representative groups, Irish Hospital
Consultants Association and Irish Medical Organisation can negotiate professional fees with health
insurers without being in breach of the Competition Authority’s regulations. However, individual
anaesthetists or recognised groups of anaesthetists within a hospital can negotiate as one entity
without being in breach of the Competition Authority.
All consultants should ensure they are covered for medical liability with appropriate insurance
cover. The Clinical Indemnity Scheme only covers private practice within the recognised hospital
or affiliated institutions. Private patients referred from public hospitals to private ones and who
are cared for by the public hospital’s doctors in the private institution are usually covered but this
should be confirmed with the Clinical Indemnity Scheme in writing before performing anaesthesia.
Supplementary insurance such as from the Medical Protection Society (Ireland) is advised for private
practice in public hospitals and mandatory for private practice done in private institutions. The exact
level of cover should be confirmed with the indemnity company.
It is possible in the ROI to practice as a group of anaesthetists who bill, collect, and distribute
monies on an agreed profit sharing basis without becoming a ‘partnership’, as legally defined. The
individual anaesthetists can remain as a sole trader. A more appropriate term would be ‘group’.
There should be articles of association or a memorandum of agreement for issues such as joining
the group, sickness, etc. The group should have a group accountant, a tax number and provide
group accounts at the end of each tax year. Incorporation as a company is also possible. In either
case, independent accountancy and legal advice should be sought.
Resources
Unlike regional centres or hospitals, the Greater London area can be geographically different and
more challenging for the anaesthetist and intensivist. There are hundreds of work locations spread
across densely populated areas. Despite this opportunity there is often a lack of high end skilled
providers of peri-operative care. The workload is far from predictable due to client demands,
surgeon availability and resource sharing. It is rare to have a predictable single speciality, single
clinical team delivering care for more than a few hours. This leads to increased travel and timing
conflicts as surgery is never exactly time defined. As hospital costs are higher, the theatre resource
is densely packed, variable and moveable to capture as much income as possible from each theatre
time block.
There are also huge differences between how a doctor is paid for many London based patients.
Syndicates and group practices are relatively rare in this area but there are some large and effective
groups. In general, these have shared secretarial services with individuals deciding individual
charges. They carry no group liability, rarely have profit share and ‘membership’ is usually by
invitation only.
Travel between multiple worksites within a single day is very common in London and given the
variability in traffic and public transport, consideration must be given to avoid clinical delays and
unplanned double booking of services. Given external communication on the underground trains
can be challenging, especially if unexpected train delays combine with variable surgical times,
single day multiple site working can be more stressful than rewarding. There is always a potential to
be delayed in returning to an NHS session later in the day due to travel or surgery and this should
be contingency planned as per other sections of this booklet.
Self-funding UK residents
These can be invoiced as per the usual rules of that doctor established above.
Many such clients will have healthcare cover under policies from large organisations such as:
• National Embassies – e.g. Kuwait, America
• Health Offices/attachés to embassies – Saudi, Kuwait, and many others
• Military attachés of countries or embassies – Kuwait
• Student offices – Saudi Cultural office
• Insurers providing cover to section of a population – Saudi Allianz or Saudi Aviva
n.b. clients of these groups will not pay any invoice themselves, before or afterwards.
Payment is not guaranteed, either in amount or time of payment. It is not unusual for payment
to arise many months or even years later and yet at an amount that may not match the invoice.
Repeated reminders are commonly necessary. Some sole traders prefer to not care for some
organisation’s patients due to historical issues with recompense. It is advised to know the funding
authority prior to agreeing the clinical care – to negotiate or cancel on the day of surgery is deemed
unprofessional by many private hospitals. Many large hospitals now have International Patient
Affairs offices to assist clinicians, but even these offices struggle.
It should be noted that these large highly funded organisations have non-European style
administration and office work flows. If their clients identify invoice issues then those clinicians
involved can be excluded from future clients and also remain unpaid for their work already
delivered.
Private hospitals
Greater London contains a very large number of hospitals, clinics, offices, and surgeries that
require anaesthesia. This is an ongoing challenge for the CQC and the individual anaesthetist. It
is an administrative load to maintain distribution, to multiple independent platforms, of appraisal,
GMC, indemnity and vaccination data that are required – this is not to be underestimated. Many
doctors have practising privileges at many institutions. This is often in contrast to non-large city
practice across the UK. Many institutions require demonstration of the Scope of Practice and only
allow independent practice that is reflected in the appraisal Scope of Practice – this can of course
become a challenge as careers develop and should the clinician leave the NHS to become fully
independent.
The CQC has encouraged many clinical areas to have an anaesthetic on-call rota, funded or
voluntary. The local regulations govern these; however, potential conflicts exist: scope of practice
declaration, content/cover (especially of paediatrics, obstetrics, cardiac, and pain); whilst the rota
may not seem onerous in frequency, it is easy to find crossover/overlap issues (probity) between
two or more rotas from the NHS and private sector, especially if the doctor has admitting rights at
several institutions.
Staffing at so many providers is frequently transient, with large numbers of bank and agency staff
covering regular, ad hoc sessions and isolated sites. With the buildings themselves rarely being
built for purpose, this can lead to a lack of essential knowledge. Therefore the occasional user
should clearly establish local safety procedures, location and access to the difficult airway trolley,
sugammadex, professional help (colleague), cardiac arrest trolley and dantrolene/Intralipid® – as
these things are rarely known by non-permanent staff.
A number of the hospitals will have high dependency or intensive care facilities on site with
separate formal rotas and trained registered medical officers, and frequently there are multiple
theatres and suites – this gives easy access to colleague/peer support in a crisis situation but should
not be relied upon and anticipated escalation of care should be pre-planned.
VIPs
Occasionally there are clients who describe themselves or are described as very important people
(VIP). As such they may demand special treatment, service and follow up. Some are self-pay, some
are covered by larger organisations as above, some on special polices within these organisations.
Of note, these clients may travel with an entourage of family and friends and, of course, personal
medical teams who have ill defined roles in healthcare delivery of the individuals but may affect the
traditional relationship UK clinicians have with their patients/clients.
Introduction
In 2008, the Association produced the Voluntary Code of Practice for Billing Private Patients in
response to requests from members and in order to guide members in matters relating to invoicing
patients for private medical services. This has been updated for 2018 and is included here as
an appendix rather than a standalone guideline. This guidance refers only to billing for patients
with private medical insurance and self-funding patients. It does not refer to NHS funded work in
independent hospitals.
The private health market, particularly around billing, continues to experience huge change.
Traditionally fees were payable by patient to anaesthetist directly but as online billing opportunities
increased there was pressure for anaesthetists’ fees to be paid directly by third parties as part of a
treatment ‘package’ or network. The Association believes it is important that the direct professional
and contractual relationship between consultant anaesthetist and private patient be maintained.
The guidance provided in this document underlines this relationship.
Summary of recommendations
• An anaesthetic consultant (henceforth ‘consultant’) sets the fees that they charge their patients.
PMIs set benefit levels for their customers. Until recently there was no requirement for any
correlation between fees and benefits
• Some PMIs now insist, as part of the process of recognition with the provider, that any new
consultant agrees to set their maximum fee to the benefit level or below
• Once a patient has agreed to the fee to be charged by the consultant for a procedure, there
exists a contract under which the patient becomes liable for the payment of the fee, regardless
of whether or not the patient holds private medical insurance
• Consultants should charge transparent and reasonable fees, and should make every effort to
inform their patients of the fees before surgery
• Insured patients should be encouraged to check the benefit levels provided by their particular
policy with their PMI before undergoing surgery
• The fee charged should ideally include the totality of the care involved in the planned
procedure. Any additional fees should be disclosed to the patient before surgery
• Consultants may send invoices to the patients, their PMI or both. The Association recommends
that consultants always send the invoice to the patient. A copy of the invoice may also be sent to
insured patients’ PMI
• Increasingly PMIs request online billing as part of their terms and conditions of recognition, with
no requirement to bill the patient directly. While this has become common practice the contract
of care remains between anaesthetist and patient
General comments
• When a consultant anaesthetist offers medical care to a private patient in return for a disclosed
fee and the patient agrees to this arrangement, a contract is created in which the patient is
wholly responsible for the payment of the consultant’s fee
• This contract is not affected by the fact that the patient is a subscriber to a PMI; the patient
remains ultimately responsible for payment of the fee but the PMI may pay some or all of the
fee to the consultant on behalf of the patient
• There exists no legally enforceable contract between a consultant and a PMI except where both
parties enter willingly into such a contract
• Private patients will remain responsible for payment of a consultant’s fee under the contract
between them unless the consultant agrees to accept that the responsibility for payment should
be confined to the PMI or other third party
• Whenever possible, the consultant should inform the patient before treatment of the likely fee or
explain how it will be determined. Where, as often happens, patients take the decision to undergo
an operation before they have spoken to their anaesthetist, they should be advised to contact the
consultant anaesthetist if they wish to be told more about the fee that will be charged
• The scope of the fee quoted by the consultant should be explained. It may for example be a totalled
fee for all the planned elements of the expected treatment process, such as:
o Routine pre-operative evaluation whether performed shortly before surgery or some time in
advance;
o Intra-operative care, including payments to assistants or consultant colleagues for services
provided during the treatment;
o All drugs and equipment used in connection with the procedure;
o Invasive monitoring lines used before, during or after surgery;
o The performance of peripheral or neuraxial regional anaesthetic or analgesic techniques
supplementary to or in place of general anaesthesia; and
o Postoperative care, to include high dependency and intensive care, and the management of
continuous neuraxial or peripheral analgesic techniques.
• If the fee quoted does not cover the totality of planned care, the consultant should tell the patient and
clearly describe the additional fees that may be charged
• The patient should be warned that if the procedure and care differs from that planned, the fee may also
vary, but that this variation will be fixed by the same means.* If any specific variations are envisaged
these should be described at least in outline and the fee scales explained
*If the fee for the planned procedure is, for instance, 125% of the benefit maximum provided by the
patient’s PMI, then the fee for the procedure actually performed would be expected to be approximately
125% of the benefit maximum offered by the PMI for the actual procedure performed
• The consultant may choose to provide a separate estimate of high dependency or intensive care fees.
This is advisable where it is less likely that these costs may be incurred
• The consultant should recommend that all patients check the benefit levels that are available for the
treatment under the policy held with the PMI
• The patient should be told that they are ultimately responsible for the payment of the fee or the
payment of any shortfall
• The consultant may wish to ask the patient to sign a financial agreement before the treatment in which
the patient guarantees that the consultant’s fee will be paid
• If the consultant chooses not to be paid directly by the PMI, the patient should be told as far in advance
before the planned treatment as possible
• The consultant should tell the patient if they know they are not recognised for benefits by the patient’s
PMI
• The consultant should keep a record of the fee quoted to the patient
• It is acceptable for a consultant to request payment of fees in advance of treatment under certain
circumstances
• Sometimes fees are negotiated by a third party on behalf of the doctor. The fee set by the consultant
anaesthetist may be agreed with the patient by the surgeon or by the surgeon’s secretary or other
agent. Sometimes it will be by a hospital administrator. Consultant anaesthetists must ensure that
their agents have a clear, complete and up-to-date list of their charges and that they make a record of
precisely what has been agreed
• Sometimes, particularly in emergencies or where there are linguistic problems, the patient’s
agreement will be given by an accompanying relative or other agent acting on their behalf. In all these
circumstances it is vital to ensure the representative has the authority of the principal they represent.
Parents and spouses have ostensible authority to negotiate on behalf of their children and partners; in
all other cases the doctor will be wise to ensure there is a binding agreement with someone identifiable
• If separate charges are to be made by the consultant in respect of anaesthetic agents, other drugs or
equipment, they should ensure that the patient appreciates this
• If the consultant surgeon and anaesthetist plan to use a coding system, e.g. CCSD codes,
when billing the patient, they should agree the code or codes relating to the procedure or
procedures performed, and should ensure that members of the operating theatre staff are
informed of these codes
• In choosing codes, the consultants should agree upon the code or codes that best describe
the procedure or procedures performed, bearing in mind that some codes are specifically
constructed so as to include the performance of more than one procedure. Consultants should
not break up the elements of a single surgical or anaesthetic procedure into its constituent parts
in order to maximise the benefit provided to the patient by his PMI
After treatment
• If the consultant agrees to set their fee within the PMI’s benefit maxima, they can send an
account only to the PMI if they so wish. Alternatively, the consultant can send an account to the
patient and a copy to the PMI (or vice versa), making clear that this has been done
• If the consultant’s fee is likely to be in excess of the PMI’s benefit, they would be wise to send an
account to the patient and, if they wish, a copy to the PMI (or vice versa)
• If the patient does not hold private medical insurance or if the consultant does not wish to be
paid directly by the PMI, the consultant should send an account to the patient and should ask
to be paid directly by the patient. Under these circumstances, the consultant should offer to
provide the patient with a receipt so that the patient can claim benefits from their PMI if he has
one
• If a consultant uses a billing service, they should consider themselves responsible for the fees
charged in the bills sent on their behalf and for the way in which the fees are collected
• Only one invoice (and copy if appropriate) should be sent for each discrete treatment episode
• Consultants are not obliged to put a CCSD code on their accounts, unless they have entered
into an agreement with the patient or their PMI to do so, but it may assist the patient if codes are
included in the account
• The consultant may include a descriptive narrative of the procedures performed in the account
in order to assist correct coding by the PMI but should not do so in order to maximise benefit
payment
• The consultant should not normally allocate portions of the fee to particular codes or narratives.
The fee should represent the whole amount payable for the entire treatment episode
• The consultant may, if it has been specified as a term of the contract, set a time limit for payment
and should detail any penalties or additional payments that will be incurred by late payment
Emergencies
• Emergency treatment is more complex and carries more risk than elective treatment. It also
frequently takes longer than elective treatment and is often more disruptive of the consultant’s
life, being conducted outside routine working hours. Thus the consultant will frequently feel it is
appropriate to charge a higher fee
• Some procedures specified by CCSD codes are always performed as emergencies and the
PMI’s benefit maxima associated with those procedures may take this into account
• Other procedures specified by CCSD codes are commonly performed electively so that benefit
maxima are less likely to cover the fees consultants charge for acting in an emergency. Where
the consultant charges a higher fee because of some factor particular to the case, such as the
fact that it has been performed as an emergency, then this should be made clear to assist the
patient in explaining the situation to the PMI
• The consultant should make every effort to warn the patient of the fee in advance of surgery but
Example of an invoice
Dr H Featherstone FRCA
Consultant Anaesthetist
21 Portland Place
London W1B 1PY
Tel: 020 7631 1650
PMI Ref: HF 04786
Provider Ref: 152320
To Mr A Patient
Address
£325.00
With compliments
Our work and members span the globe, yet our voice is local and personal. We stay in close contact
with our members, look after their day-to-day wellbeing, and act as their champion.
Our world-class conferences, journal and online resources educate and inform, and our respected
guidelines continually improve standards of patient safety.
We preserve and learn from the history of anaesthesia. We use that to inform the present, and
facilitate vital research and innovation into its future.
As an independent organisation, we speak up freely and openly for the interests of anaesthetists
and their patients. We influence policy, raise public awareness and are at the forefront of safer
anaesthesia across the world.
Association of Anaesthetists is the brand name used to refer to both the Association of Anaesthetists
of Great Britain & Ireland and its related charity, AAGBI Foundation (England & Wales no. 293575
and in Scotland no. SC040697).