Partner Exits
When a partner leaves — whether planned or not — everything changes. A practical guide to getting it right, for those leaving and those staying.
1. Types of exit
Not all exits are equal. The type of exit shapes the timeline, emotional impact, financial settlement, and legal complexity.
Voluntary retirement
Planned exit, usually at or near pension age. Full notice period (usually 6 months). Clean, orderly handover.
Resignation
Planned exit before retirement. May signal dissatisfaction. Can affect remaining partners’ morale and workload.
24-hour retirement (pension crystallisation)
A deliberate strategy: resign all NHS posts for 24+ hours to crystallise pension benefits, then return to work. Planned and financially motivated — not a crisis exit. See section 5.
Ill-health retirement
Exit due to medical incapacity. May trigger ill-health pension benefits. Occupational health must be involved.
Expulsion
Partnership agreement allows removal (e.g., for serious misconduct). Legal and emotional consequences are severe.
Death
Partner dies in service. In a two-partner practice, the partnership automatically dissolves. In larger practices, the partnership continues (unless the deed says otherwise), but the estate must be settled promptly.
Expulsion is rare but nuclear
If your partnership agreement includes expulsion clauses, take them seriously. Expelled partners often pursue legal action. The cost and stress can damage the entire practice.
2. The human side
Partner exits are personal. Staff and patients develop attachments. The departing partner may be grieving their identity. The remaining partners face uncertainty and workload stress.
Emotional reality
Being a GP partner is deeply tied to identity. Leaving can feel like grief, even if the exit is positive. Expect:
- Departing partner: relief, sadness, anxiety about identity and income post-exit
- Remaining partners: resentment (extra work), anxiety (can we sustain this?), sometimes relief
- Staff: uncertainty about roles, fear of redundancy, sadness if they bond with departing partner
BMA mediation service
The BMA offers mediation for partnership disputes and difficult exits. It can help you communicate clearly and reach agreement before things escalate. Use it.
Communication with staff
Staff learn about exits from gossip unless you tell them first. A clear, honest conversation reduces panic:
- Tell all staff together (face-to-face if possible)
- Explain the timeline and what it means for their roles
- Confirm the practice is stable and hiring if needed
- Address redundancy fears if relevant
Communication with patients
Patients need notice of their GP's departure. Leave time for them to transfer care:
- Use a poster in reception 8–12 weeks before departure
- Mention it in newsletters and online
- Encourage continuity with another named doctor
- Offer a final consultation to discuss ongoing care
3. Step-by-step timeline
A planned exit typically unfolds over 6 months. Here's the rhythm.
Month −6: Decision and legal review
- Partner decides to leave
- Review partnership agreement for exit clauses
- Consult solicitor and accountant
- Check pension position with NHS
Month −5: Notification begins
- Meet with other partners and practice leadership
- Agree on departure date and handover plan
- Notify CQC and relevant bodies (check what applies)
- Start recruitment process if needed
Month −3: Notice given formally
- Issue formal notice to partnership
- Notify PCSE of intended change
- Begin staff and patient communication
- Arrange financial settlement discussions
Month −1: Handover and final arrangements
- Transfer patient records and caseloads
- Brief remaining partners on ongoing cases
- Finalise financial accounts
- Organise farewell (optional)
Departure day: Exit complete
- Cease all NHS contractor duties
- Hand over all keys, passwords, clinical systems access
- Sign final discharge papers
- Partner formally removed from partnership
Month +1: Post-departure
- Final accounts drawn up
- Capital repayment processed
- NHS pension arrangements confirmed
- Goodwill payment (if applicable) settled
CQC notification
Not all exits trigger CQC notification. Check the current CQC guidance for your practice type. If unsure, ask your accountant or solicitor.
4. Financial settlement
The money side of an exit can be complex. What does the departing partner receive? What happens to the practice's assets?
Final accounts
The practice draws up accounts to the date of departure. The departing partner receives:
- Their share of any profit (or loss) up to departure day
- Refund of any loan they made to the practice
- Repayment of their capital account (equity in the practice)
Capital repayment
Each partner's capital account reflects their stake in the practice's property, equipment, and working capital. Most partnership deeds specify repayment over 3–12 months, often in instalments. The remaining partners must have the cash (or arrange financing) to pay it — or the departing partner becomes a creditor.
Undercapitalised practices struggle
If a practice is undercapitalised, the remaining partners may not have funds to repay the departing partner's capital account. This can lead to disputes and protracted negotiations.
Property buyout
If the departing partner owns a share of the practice premises (freehold or leasehold), that must be resolved:
- Sale to remaining partners:They buy out the departing partner's share
- Refinance: The practice refinances the mortgage and pays off the departing partner
- Hold as trustee: A remaining partner holds the property in trust (unusual, risky)
Goodwill (section 259)
Under section 259 of the NHS Act 2006, it is illegal to sell the goodwill of an NHS general practice. This means a departing partner cannot be paid for their share of the practice's patient list or reputation. Goodwill is valued at nil.
Goodwill disputes are common
If your partnership agreement doesn't define goodwill clearly, expect conflict. Have this conversation when healthy, not when someone is leaving.
5. 24-hour retirement — pension crystallisation
This is a deliberate, planned financial strategy — not a crisis exit. It is often confused with a partner suddenly walking out, but the two are completely different. 24-hour retirement is a pension crystallisation tool used by GPs who want to unlock their accrued pension benefits while continuing to work.
What is it?
You resign from partnership and cease all NHS work (including locum, sessional, and non-pensionable posts) for a continuous 24-hour period. This triggers immediate crystallisation of your pension benefits — you can access them as a lump sum and/or annual pension. After the 24 hours, you return to work and begin building new pension rights from scratch.
This is planned, not chaotic
Unlike a sudden departure, 24-hour retirement is coordinated with your practice in advance. The partnership continues, clinical cover is arranged, and the 24-hour gap is administrative — not a disruption to patient care.
How it works
Step 1: Resign all NHS posts
Resign partnership and all other NHS posts simultaneously. You must have zero NHS employment or contractor status for the full 24 hours.
Step 2: 24-hour break
Step back from all NHS-contracted work for 24+ continuous hours. Since April 2023, the old 16-hour rule no longer applies — a full 24-hour break is required.
Step 3: Pension crystallises
Your accrued pension benefits become accessible immediately. You can take a lump sum (up to 4.28 times your annual pension under the 2015 Scheme) and/or begin drawing your annual pension.
Step 4: Return to work
Return to work as a locum, salaried GP, or re-join as a partner. You start building new pension rights from zero as a new scheme member.
Key risks
- You lose death-in-service benefits during the break and afterwards unless separately insured
- You lose ill-health retirement cover unless separately insured
- Returning as a new member means your pension starts from zero — your future pension will be smaller unless you work many more years
- Complex tax calculations — the lump sum and pension income interact with your other earnings in the tax year. Get specialist advice
- If you return part-time, your new pension accrual will be proportionally lower
Get specialist pension and tax advice
24-hour retirement can unlock significant benefits, but the decision is irreversible. Consult a pension specialist and accountant experienced in NHS GP pensions before committing. The interaction between crystallised benefits, annual allowance, and lifetime allowance (now abolished but with transitional protections) is complex.
Planned exit vs sudden departure
To be clear: 24-hour retirement is not the same as a partner walking out without notice. The comparison below shows the difference between a properly planned exit and a genuine sudden departure.
| Aspect | Planned exit (6 months) | Sudden departure |
|---|---|---|
| Notice period | 3–6 months, orderly handover | None — partner leaves without warning |
| Remaining partners | Workload managed, income stable | Sudden workload spike, emergency cover needed |
| Patient continuity | Gradual handover possible | Abrupt change of care |
| CQC risk | Managed transition | Potential concerns raised |
| Practice viability | Remains stable | May be threatened |
| Financial impact | Predictable settlement | Disputes and emergency costs common |
Prevention is easier than recovery
Sudden departures (not 24-hour retirement) are the real risk. Build a healthy partnership culture. Regular partner meetings, clear communication, and willingness to address conflict can prevent sudden exits. If a partner is unhappy, surface it early.
6. NHS Pension
GP partners in the NHS Scheme have a special relationship with the pension. It's not a simple employee scheme.
The core scheme
Most GP partners contribute to the NHS Pension Scheme. You pay a percentage of earnings; the NHS tops it up. On exit, you have options.
Annual Summary Certificate (ASC)
Before or on departure, you must receive an ASC from NHS Pension Services. It shows:
- Your total pensionable service
- Your contributions to date
- Your benefit statement
Do not sign off on your exit without this. You need it to understand your pension position and to claim benefits later.
What happens on exit
When you leave the partnership:
- Your NHS Scheme contributions cease
- You become a deferred member — your service is frozen
- You can draw your pension at normal scheme age (subject to rules)
- If you rejoin the NHS Scheme (e.g., as a locum or salaried GP), service counts
Get pension advice early
Pension decisions are irreversible. If you're unsure about ill-health retirement, deferred status, or transfers, consult a pension specialist before you leave.
Ill-health retirement
If you leave due to medical incapacity, you may be eligible for an enhanced pension (ill-health benefits). You must apply before or very shortly after departure. The process involves occupational health assessment.
7. PCSE requirements
PCSE (Primary Care Support England) manages NHS contractor arrangements. When a partner exits, PCSE must be notified and must process specific forms.
Forms and timelines
The partnership (usually the practice manager or remaining partners) must:
- Notify PCSE at least 3 months before the partner ceases to be a contractor (if possible)
- Complete a Contractor Change Formconfirming the partner's exit date and the practice structure post-exit
- If the partnership continues, confirm the remaining partners and their shares
- If the partnership dissolves, confirm the new contractor (individual or new partnership)
Late notification can be costly
If PCSE is not notified by the agreed date: payments continue to the departing partner (practice must recover the money), revalidation and appraisal status becomes unclear, CQC concerns may arise, and regulatory risk increases. Notify PCSE early and in writing.
Performers List
Important distinction:Leaving a partnership does not mean leaving the NHS Performers List. If you're continuing to work as a GP (locum, salaried, or joining another practice), you stay on the Performers List — you simply update your entry via PCSE Performer Home to reflect your new working arrangements. You only withdraw from the Performers List if you are stopping all GP work entirely.
Special cases
If the practice changes its structure after the partner exits (e.g., to a single-handed contract or a new partnership arrangement), PCSE must approve the new structure. This can take weeks.
8. Practice survival
Will the practice survive after a partner leaves? That depends on recruitment, workload redistribution, and financial stability.
Recruitment
Hiring a new GP partner can take 6–12 months. In the meantime:
- Locums fill the gap (expensive, variable quality)
- Remaining partners pick up extra work (burnout risk)
- Salaried GPs may be temporary cover
Start recruitment immediately
Don't wait until the departing partner has left. Begin advertising as soon as notice is given. Even a 2-month head start matters.
Locums and emergency cover
Locum costs are typically 40–50% higher than salaried equivalents. A 24-hour exit may require emergency locum agencies (even more expensive). Budget accordingly.
Workload and burnout
Remaining partners will work harder. Plan for:
- Temporary reduction in appointment availability
- Reduced administrative time
- Staff support (extra workload for reception, nursing, admin)
- Risk of further departures if remaining partners are exhausted
Financial impact
In the short term, practice income drops. Longer term, it depends on recruitment:
- If you recruit a new partner, income returns to baseline (after probation)
- If you stay short-staffed, income stays depressed and other partners earn less
- Costs may rise (locums, emergency staffing)
Some practices don't survive
Partner exits are sometimes the catalyst for practice failure. If the remaining partners cannot absorb the work or cannot afford locums, the practice may become unviable. Have a succession plan in place before crisis hits.
9. When things go wrong
Not all exits are clean. Sometimes disputes, misunderstandings, or misconduct derail the process.
Dissolution
If the partnership breaks down completely and cannot agree on the exit, it may dissolve. This means all partners cease to be partners simultaneously. The practice must then become a new legal entity.
Dissolution is expensive and time-consuming:
- Legal fees for dissolution documentation
- Accountant fees for final winding-up accounts
- Dispute over asset division
- Potential litigation over goodwill or property
- Regulatory risk (CQC, PCSE) during the transition
Litigation
Disputes over capital repayment, goodwill, or alleged breaches of contract can lead to court cases. This is rare but devastating:
- Legal costs run to tens of thousands of pounds
- Years of uncertainty and stress
- Risk to practice reputation and staff morale
- Clinical workload doesn't pause while you fight
Mediation and arbitration first
Before litigation, try mediation (BMA, ACAS) or arbitration (if your partnership agreement includes it). It's faster, cheaper, and confidential.
Common traps
- No written exit plan: Partners assume different things. Confusion and anger follow.
- Undisclosed goodwill clause: Departing partner expects payment; remaining partners refuse.
- Property entanglement: Partner owns property in their name personally; exit stalls until resolved.
- Pension surprises:Partner didn't understand pension implications. Blames remaining partners after the fact.
- Rushed settlements: Departing partner accepts cash offer to exit quickly; realises later the offer was far below fair value.
10. Neighbourhood Health implications
With Neighbourhood Health contracts expected from 2027–28, the landscape around partner exits is changing. A departure that might once have been a purely internal matter can now attract attention from ICBs and NHS England — particularly if your practice is in a neighbourhood being reorganised.
Structural pressure at exit
When a GP partner exits, your ICB or NHS England may suggest the practice consider a different model:
- Salaried model: All GPs employed, not partners — removing the need to recruit a new equity partner
- Merger: Joining with a larger practice or another practice in your PCN/neighbourhood
- Single or Multi-Neighbourhood Provider contract: Your practice becomes part of a larger provider holding the Neighbourhood Health contract for your area
- APMS contract: Handover to an external provider — a commercial or community interest company — if the partnership can no longer sustain the GMS/PMS contract
You have the right to refuse. These are proposals, not requirements. But be aware that support (funding, resilience funding, locum subsidies) may be offered alongside the proposal — and declining may mean declining the support too.
Don't be forced into a bad deal
A partner exit is a moment of vulnerability. System partners may see it as an opportunity to restructure your practice. Take time to evaluate any proposals. Consult your BMA rep, LMC, and accountant before signing anything. Understand what you're giving up — not just what you're being offered.
11. Glossary
ASC
Annual Summary Certificate
Shows your NHS pension contributions and service.
Goodwill
The intangible value of a business. Under section 259 of the NHS Act 2006, it is illegal to sell the goodwill of an NHS general practice. Goodwill is valued at nil.
PCSE
Primary Care Support England
Manages NHS contractor payments and arrangements.
SNP
Single Neighbourhood Provider
A single provider holding the Neighbourhood Health contract for a defined area.
MNP
Multi-Neighbourhood Provider
A provider holding contracts across multiple neighbourhoods.
Ill-health retirement
Early exit from partnership due to medical incapacity, allowing full pension access without actuarial reduction.
24-hour retirement
Partner retires and ceases all NHS work for 24 continuous hours to crystallise pension benefits, then returns to work.
Capital accounts
Each partner’s share of the practice’s tangible assets.
Dissolution
Legal ending of the partnership — all partners cease to be partners.
Notice period
Time between announcing departure and final exit date (typically 6 months).
12. Practice action checklist
Use this checklist to ensure nothing is missed. Tick off each item as it's completed.
13. Sources and further reading
- BMA: Leaving or retiring from a GP partnership
- BMA: Interpersonal mediation for GP partnerships
- BMA Law: Partnership exits and dissolution
- PCSE: Changes to your partnership
- NHS BSA: NHS Pension Scheme for GP providers
- NHS BSA: Retiring from the NHS Pension Scheme
- CQC: Telling us about changes to your registration
- NHS Act 2006, Section 259 — Sale of goodwill prohibition
- Mills & Reeve: Partnership agreements in general practice
Speak to your advisors
This guide is general information. Before you exit (or manage someone else's exit), consult your solicitor, accountant, and BMA. Every practice and every partner exit is different.