PCN Financial Management: Five Common Challenges and How to Address Them

PCN Financial Management: Five Common Challenges and How to Address Them

Primary Care Networks (PCNs) play an important role in delivering joined-up services across general practice. Behind that work, effective financial management helps networks plan their workforce, allocate resources and maintain transparency between member practices.

However, managing multiple funding streams, monitoring workforce expenditure and coordinating financial responsibilities can be challenging.

Having worked in primary care for over 12 years, including supporting PCN financial management, I understand how much difference clear records, regular reporting and agreed responsibilities can make.

Below are five common financial challenges faced by PCNs, along with practical steps to address them.

1. Keeping Track of Different Funding Streams

PCNs may receive funding through several arrangements, including the Network Contract Directed Enhanced Service (DES), workforce reimbursement schemes and locally commissioned services. Each may have its own payment arrangements and reporting requirements.

Without a clear breakdown of income and expenditure, it can be difficult to understand which payments have arrived, what remains outstanding and how much funding is available against planned commitments.

My advice: Maintain clearly identifiable financial records for each funding stream and regularly reconcile expected income against payments received. Investigate discrepancies promptly so that financial reports reflect the network’s position accurately.

2. Monitoring Workforce Expenditure and ARRS Reimbursements

Workforce costs are often one of the largest areas of PCN expenditure. Keeping track of these costs is particularly important when staffing arrangements change or new roles are introduced.

Where staff are funded through the Additional Roles Reimbursement Scheme (ARRS), PCNs need to understand the applicable reimbursement rules, eligible costs and available funding.

My advice: Maintain a detailed workforce expenditure record and regularly compare actual staffing costs with anticipated reimbursements. Review claims against the applicable guidance and track payments received alongside outstanding claims.

This helps the network identify differences between expenditure and reimbursement and plan future staffing commitments with greater clarity.

3. Providing Clear, Regular Financial Reports

Clinical directors and member practices need a shared understanding of how PCN funding is being used.

Without regular reporting, it can be difficult to spot overspending, anticipate future costs or make informed decisions about resources.

My advice: Produce a consistent financial summary that covers:

• Income expected and received.
• Expenditure incurred.
• Outstanding payments and reimbursement claims.
• Forecast expenditure and existing commitments.
• Differences between budgeted and actual figures.

A clear report should help PCN leaders understand both the current financial position and the commitments that will affect it in the months ahead.

4. Agreeing Financial Responsibilities Across the Network

PCN financial responsibilities vary depending on the network’s organisational and contractual arrangements. Funds may be managed by a lead practice, federation or another organisation.

When responsibilities are unclear, payment approvals, record keeping and reporting can become fragmented.

My advice: Agree and document who is responsible for maintaining records, approving expenditure, submitting claims and reviewing financial reports.

Clear approval processes and reporting arrangements help improve transparency and reduce confusion between member practices.

5. Preparing for Year-End Throughout the Year

Year-end becomes more challenging when financial information is spread across multiple systems or organisations. Missing documents, unreconciled balances and unresolved payment queries can all make the process harder.

My advice: Treat year-end preparation as an ongoing process. Keep records up to date, reconcile balances regularly and retain supporting documentation for income, expenditure and funding claims.

Addressing discrepancies throughout the year can reduce the amount of work needed at year-end and make it easier to provide complete information to those preparing the accounts.

Frequently Asked Questions

Does a PCN need separate financial records?

PCN-related income and expenditure should be clearly identifiable and appropriately recorded, even where a lead practice or another organisation manages the finances.

How often should PCNs review their finances?

Monthly financial reporting can help PCN leadership monitor spending, workforce costs and available funding. Regular reviews also provide an opportunity to discuss outstanding payments and upcoming commitments.

Can a PCN outsource its bookkeeping and financial reporting?

Yes. Depending on its governance arrangements, a PCN can obtain external support for bookkeeping, reconciliations, management accounts and financial reporting. The scope of that support and the responsibilities retained by the network should be clearly agreed.

What is the benefit of working with someone who has primary care experience?

Understanding primary care funding, operational structures and the practical challenges of working across multiple practices can make financial support more relevant to a PCN’s needs.

Specialist Financial Support for GP Practices and PCNs

As a CIMA-qualified finance professional with experience in general practice, PCN finances and primary care business management, I provide independent financial support tailored to primary care organisations.

My services include:

• Bookkeeping and financial record keeping.
• Financial reconciliations.
• Management accounts and financial reporting.
• Expenditure monitoring.
• Year-end accounts preparation.

Working alongside The Medicines Management Team, I help GP practices and PCNs achieve greater financial clarity, allowing their teams to focus on delivering patient services.

To discuss your practice or PCN’s financial support requirements, contact The Medicines Management Team.