What Is NHS Contract Value in a Dental Practice?
The NHS Contract Value is the total annual amount of funding agreed between a dental practice and NHS England, NHS Wales, or NHSBSA for delivering NHS dental services.
It represents the practice’s guaranteed NHS income — provided contracted activity (such as UDAs in England, or agreed performance measures in Wales) is delivered.
Why Does NHS Contract Value Matter for Dental Practice Owners?
The contract value is the lifeblood of NHS-funded practices. It drives:
- Cash flow – monthly instalments are paid in advance of year-end reconciliation
- Associate pay splits – often linked to NHS delivery targets
- Clawback exposure – underperformance reduces final income
- Valuation – NHS contract value is a key factor in goodwill when selling a practice
Example:
- NHS contract value: £500,000 for 20,000 UDAs
- Practice delivers only 18,000 UDAs (90%)
- Clawback: £50,000 → adjusted income £450,000
How Is an NHS Contract Value Paid?
| Region | Payment Basis | Key Features |
| England | UDAs (Units of Dental Activity) | Fixed annual value paid monthly, adjusted for UDA delivery |
| Wales | Contract Value + Outcomes | Less UDA-driven, more outcome-based targets |
| Scotland | Capitation + Item of Service | No contract value – funding tied to patients + treatments |
| Northern Ireland | Historical contract values | Similar to England but with local variations |
How Does DentPulse Track NHS Contract Value?
| Feature | Function |
| Contract Value Dashboard | Shows live income vs expected NHS contract payments |
| UDA Forecasting | Projects delivery vs target and potential clawback |
| Revenue Recognition Engine | Matches NHS income to treatment delivery, not just payments received |
| Hybrid Revenue Model Forecasting™ | Balances NHS income with private and plan-based income |
DentPulse ensures NHS contract values are monitored, forecasted, and linked directly to practice profitability.
DentPulse Tip™
“Your NHS contract value isn’t guaranteed income — it’s performance-dependent.
Forecast monthly, not annually.”
Related Glossary Terms
- UDA (Units of Dental Activity) – measure of NHS activity in England
- NHS Clawback – repayment when contract value isn’t delivered
- NHSBSA – body that administers contract payments in England
- Hybrid Revenue Model Forecasting – NHS + private + plans balance
- Revenue Recognition – ensures contract income is matched to delivery
Glossary Summary Table
| Term | Meaning |
| NHS Contract Value | The total annual NHS funding allocated to a practice |
| Purpose | Provides stable income but linked to delivery targets |
| DentPulse Advantage | Forecasts clawback, integrates with revenue recognition and hybrid models |
