Have the Primary Care Trust lost its collective mind?

I have been contacted by many local residents who are dismayed that their local GP is on the verge of being closed down. Why? Well he is a sole practitioner and the local PCT say he must operate from about 250 square metres of space (he needs no more than 150 square metres). Apparently there is a drive by the PCT, perhaps with Government's Department for Health in the background - to only support multi-GP practices. So the popular GP has to find two or more GPs to join with him, move into a poly-clinic (that's a big GP surgery to you and me, plus practice nurses etc) or to stop practising. He has a full roll of patients, is respected and liked and can find premises for himself. He doesn't want to merge with others or move into a poly-clinic. Big isn't always best! Why can't he be left alone?