An Essential Step for all Psychologists: Future Proof Your Practice
As a psychologist you tend to consider the future and think about risk often, so this article might answer some questions you have had on your mind. Have you ever thought about what would happen to your practice if the worst were to happen to you? Would your clients be taken care of?
Unexpected events can leave psychologists and psychology practice owners in a precarious situation. Bankruptcy, divorce or separation, permanent disability, incapacity or death (“Trigger Events”) can pose a significant risk to psychology practice operations and the continuity of client care. The importance of planning for these events cannot be overstated. A proactive approach, and focussed foresight, ensures your practice is protected, clients looked after, and loved ones spared the stress, worry and angst of navigating these challenges.
This article is not about estate planning, for that we suggest speaking with a specialist estate planning lawyer, we’re here to work through why it’s important to consider these issues and how and what to plan for your business, if a Trigger Event were to occur.
Why is Contingency Planning important for Psychologists?
Confronting the ‘what-ifs’ is never easy, but preparation is crucial – particularly for psychologists. As a psychologist or practice manager for psychologists, you already know that an unexpected closure – whether temporary or not – can severely impact clients, particularly when you are working with vulnerable people.
The Australian Psychological Society (APS) Code of Ethics imposes strict obligations regarding confidentiality and continuity of care. Contingency planning is not only about protecting the practice’s physical and financial assets, but it also reflects a commitment to clients and makes good on your ethical responsibility to provide confidential, uninterrupted, and professional care in the event something goes wrong. By identifying and proactively mitigating risks, contingency planning can safeguard a psychology practice’s future and maintain the trust of its clients.
Contingency planning ensures (1) continuity of client care, (2) ensures your practice’s professional reputation is maintained, (3) makes good on your legal and ethical compliance, and (4) enables operational resilience.
Legal and Ethical Considerations
When developing a risk management and practice contingency plan, psychologists must navigate essential legal and ethical considerations. These elements not only protect the practice but also reinforce trust with clients.
Compliance with Healthcare Regulations:
A primary legal consideration is adherence to healthcare laws, including privacy regulations governing patient information. Psychologists must ensure their contingency plans specify how client data will be safeguarded, particularly during temporary closures or transitions of care. Compliance with APS, AHPRA, and other relevant professional bodies is essential.
Patient Confidentiality and Continuity of Care:
Maintaining patient confidentiality and ensuring continuity of care are paramount. Contingency plans should detail measures for transferring care to a qualified nominee while upholding confidentiality. Clear consent processes for sharing patient information with appointed colleagues or for referrals must be established.
Legal Advice for Documentation:
Consulting with a legal professional specialised in healthcare is advisable when drafting wills and practice contingency documents. Legal professionals can provide insights into obligations and help structure documents that protect both the psychologist’s and the clients’ interests, including guidance on enduring powers of attorney and professional wills.
Ethical Obligations to Patients and Staff:
Psychologists have an ethical duty to prepare staff and clients for possible practice disruptions. This includes developing guidelines for staff to follow in the psychologist's absence and ensuring clear communication with clients regarding care continuity.
Professional Wills:
A professional will serves as an ethical document that outlines how patient care will be managed in the event of the psychologist’s sudden incapacity or death. While not legally binding, it reflects a commitment to professional responsibility and client welfare, ensuring provisions are in place for the ethical handling of patient care.
By integrating these legal and ethical considerations into your contingency plans, you can protect your psychology practice from potential legal challenges while reinforcing your commitment to ethical standards and high-quality patient care. This proactive approach reflects a dedication to professionalism and ensures that the highest standards of care are upheld, even in uncertain times.
Practical Steps for Implementation
Creating a Practice Contingency Plan doesn’t have to be overwhelming. Below are simple, practical steps to help you develop an effective plan.
STEP 1: Risk Assessment:
Identify potential risks that could disrupt your practice, such as natural disasters, health crises, data breaches, or legal issues. Evaluate and prioritise these risks based on their likelihood and impact on patient care and operations.
Step 2: Develop the Plan:
Create specific action steps for each risk identified, including protocols for patient care, communication, and data security. Assign roles to key staff members and appoint a professional nominee, ensuring they understand the demands of their role.
Step 3: Ensure Legal and Ethical Compliance:
Consult with healthcare legal professionals to review your plan for compliance with confidentiality laws, ethical standards, and patient transfer protocols. In particular, ensure your plan addresses APS Code of Ethics, AHPRA Regulations, and Privacy Laws under Privacy Act 1988.
Step 4: Communicate the Plan:
Share the contingency plan with staff, your professional nominee, and where appropriate, your patients. Ensure everyone understands their roles and how to execute the plan during a crisis.
Step 5: Leverage Technology:
Implement secure, cloud-based electronic health record (EHR) systems for patient data access and telehealth services. Ensure all data backup processes are reliable, secure, and easily accessible.
Step 6: Legal Documentation:
Draft, sign and securely store key legal documents such as a professional will, power of attorney, and other relevant agreements. Make these documents easily accessible to appointed individuals.
Step 7: Regular Review:
Review and update your contingency plan annually to reflect changes in risks or operations. Adjust the plan based on new technologies, regulatory changes, or lessons learned from actual or simulated crises.
Step 8: Staff Training and Preparedness:
Train your team on the plan’s emergency protocols and communication strategies. Conduct periodic drills to ensure staff are familiar with their roles and can execute the plan effectively during a crisis.
These practical steps will ensure the sustainability of the practice while reinforcing a commitment to patient care and ethical standards, creating a resilient and responsive practice ready to face any challenge.
Client Story
As health law lawyers, we frequently encounter the struggles faced by psychologists during crises. The stress, worry, and anxiety can be debilitating.
One of our clients, a clinical psychologist who experienced an unexpected health crisis, which required her to be suddenly hospitalised for several weeks. She had not prepared a contingency plan, which meant her practice encountered significant challenges in her absence. Clients were left without guidance, causing distress not only for them but also for their families, and her support people were left grappling to work out what to do. Plunged into uncertain waters, her family struggled to manage the clinic without clear guidance. This only added to the overall stress at an already difficult time, as her health crisis meant she had difficulty communicating with them.
Fortunately, this experience motivated her to create a comprehensive contingency plan once she recovered. Clear protocols, procedures, and designation of responsibilities means she now feels secure knowing her clients will continue to receive the care they need, if another health challenges suddenly arises for her.
Next Steps & How We Can Help
Preparedness is not merely a legal obligation for psychologists; it’s a commitment to your practice and your clients. By taking proactive steps to establish a Practice Contingency Plan, you can safeguard your interests and those of your clients.
At You Legal, we believe in empowering clinicians to take charge of their future. Our team has extensive experience in providing advice and insights for psychologists. We have assisted in many psychologists to protect their clients and clinics If you want to get started immediately, we have a Fast Track Solution to purchase. If you would prefer to discuss this, contact our team here, and we can work through the next steps, together.