BIM54050 - Doctors in group practice

With a view to encouraging the formation of group practices, the local management body, sometimes through intermediaries, occasionally makes interest-free loans to doctors in general practice. The term `group practice' means that the practice is carried on by several doctors working together in close association, consulting about their patients and doing their surgery work wholly or partly in a common building. A group may or may not be a partnership.

Repayment of the loans is normally effected by means of quarterly deductions from the remuneration payable to individual members of the group. Where proper accounts are prepared, no difficulty is likely to arise but in other cases it should be borne in mind that the amounts shown as received may be net sums after deduction of loan repayments.