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Sub-Contracting21

7.21

The Contractor shall not assign, sub-contract or in any way dispose of any of its rights or duties under the Contract in relation to the Services or any part thereof without the prior written authorisation of the PCT and subject to such conditions as the PCT believes to be necessary.

7.22

The Contractor acknowledges that the PCT shall not grant it authorisation under Clause 7.21 to sub-contract any of its rights or duties under the Contract unless the Contractor has satisfied the PCT that any sub contractor is qualified and competent to provide the service.

7.23

A contract with a sub-contractor must, unless the PCT agrees otherwise in writing, prohibit the sub-contractor from sub-contracting the services it has agreed with the Contractor to provide.

7.24

If the Contractor has a list of Registered Patients or a list of Registered Patients is held in respect of it, the Contractor shall not sub-contract any of its rights or duties under the Agreement in relation to the provision of Essential Services to a company or firm:

7.24.1

owned wholly or partly by the Contractor, or by any former or current employee or partner or shareholder in, the Contractor;

7.24.2

formed by or on behalf of the Contractor, or from which it derives or may derive pecuniary benefit;

7.24.3

formed by or on behalf of a former or current employee of, or partner or shareholder in, the Contractor, or from which such a person derives or may derive pecuniary benefit,

where that company or firm is or was formed wholly or partly for the purpose of avoiding the restrictions on the sale of goodwill of a medical practice in section 54 of the National Health Service Act 1977 or any Regulations made wholly or partly under that section.22

21 APMS Direction 4(d) requires that contracts specify the circumstances (if any) in which any obligation under the contract may be sub-contracted, but does not require any particular wording to be used (apart from Clause 7.24).  PCTs will wish to consider whether the wording suggested in Clauses 7.21 to 7.23 is appropriate for their local circumstances.

22 Clause 7.24 is required by APMS Direction 5(1)(i), but in practice it is unlikely to be relevant to a contract with an out of hours provider, because it only applies where the provider has a list of registered patients.

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