Key takeaways
SNP contract redefines local healthcare delivery
Streamlines commissioning and integrates services for local populations
Incorporation gives PCNs control and flexibility
Corporate structure enables contract holding and risk management
Act now to secure future opportunities
Early preparation positions PCNs for higher-value contracts
Unlocking the opportunity
What the SNP Contract means for PCNs and why incorporation matters
From April 2026, the NHS is expected to introduce the Single Neighbourhood Provider (SNP) contract, a new contract designed to streamline commissioning and integrate services at neighbourhood level.
What is the SNP Contract?
The SNP contract is part of the NHS’s wider shift from hospital to community-based care. It will consolidate services and health inequality initiatives under a single accountable provider for populations of around 30,000 - 50,000 patients (typically aligned with existing PCN footprints).
Why PCN incorporation is key
To hold an SNP contract, we anticipate that a provider must be able to:
Deliver regulated services across multiple sites.
Demonstrate robust governance, operational capability and integrated working; and
Employ staff, hold contracts, and manage risk independently.
This is where the formation of a corporate vehicle becomes an attractive option for PCNs. By forming a corporate vehicle, such as the commonly used company limited by shares, PCNs can:
Hold contracts directly (including the SNP contract);
Employ ARRS and clinical staff centrally;
Limit liability for individual member practices; and
Bid for additional services (e.g. community diagnostics, outpatient care).
Incorporation also enables PCNs to future-proof their structure, making them more agile and attractive to commissioners when they are awarding future iterations of the neighbourhood contract.
The commercial opportunity
For PCNs ready to incorporate, the SNP model opens the door to:
Potential for longer-term, higher-value contracts;
Greater autonomy in service design and delivery;
Stronger negotiating power with ICBs and Trusts;
The potential to scale up into Multi-Neighbourhood Provider (MNP) models in future.
PCNs should act now to assess their readiness, explore incorporation options, and prepare to bid.
How we can help
We support PCNs through every stage of the incorporation journey:
Governance and legal structuring
Company formation and registration
Contract readiness and bid support
Due diligence and risk management
Staff transfer and TUPE advice
Whether you’re a lead practice, a federation, or a group of practices exploring collaboration, we can help you build a robust, compliant, and future-ready provider vehicle.
This article was co-authored by Sandy Ibbotson.
