Medical Practice Risk Assessment | Minimising Risk in 2022

As international and state and territory borders open, and we adjust to life with COVID-19 in the community, it is starting to feel like we are approaching the new normal, resuming (to some extent) to life pre-pandemic. However, 2022 will pose some unique risks to medical practices in Australia.

As you might expect, an annual medical practice risk assessment is essential. In this article we outline what we foresee will be of particular risk this year, as well as how to minimise that risk and the effect on your practice.

However, before we get into the risks, it would be remiss of us not to mention that first and foremost, the ability for practices to adapt will continue to be required. As the last two years have taught us, a lot can change in a very short amount of time and it’s not often we know which challenges will be presented, or when. For this reason, it will be vital for your team to continue to ensure they are adaptable.

The effect of the pandemic will be felt by medical practices for a long time to come, although not in the way it has over the last two years. In 2022, we anticipate that there will be four key areas of risk to be managed.

1. Vaccination Related Risk for Medical Practices

Whilst your practice staff are most likely already immunised against COVID-19, and while it is not necessarily a continuing issue for them as there are government mandates in place, it will remain a hot topic in the community.

As you know, in your practice there are two limbs to vaccination. While your team is mandated to be vaccinated for COVID-19, you will have patients coming into your practice seeking exemptions from vaccination. Exemptions are a constantly changing landscape, and you will need up-to-date legal advice to ensure your doctors and team members are following and providing advice that is accurate.

2. GP Resourcing Risk

A forecast conducted by Deloitte in 2019 identified that urban and regional areas in Australia will be progressively undersupplied with GP’s until 2030. Also, there is a so-called ‘War on Talent’ underpinning this problem, making it harder for practices to find staff in general.

As a medical practice owner, one method to avoid this issue of GP shortage is to think about ways in which you can maintain the relationships you currently have with your staff. Set some time aside to think about ways to incentivise your staff or encourage them to stay in your practice.

While the challenge may be real right now, it is expected to worsen, so ensure that your employment and contractor agreements are in place and up to date.

3. Retrospective Payroll Tax Risk

Another hot topic that is causing a stir is a recent Payroll Tax case in NSW. Essentially the issue is that a GP practice lost a legal battle over a retrospective $800,000 payroll tax bill.

The risk to medical practices, in both NSW and the rest of Australia, is that State Revenue Officers are going to start looking more closely at the arrangements between practices and doctors.

This makes it all the more important to review your contracts with the doctors, to ensure they accurately reflect the arrangement that you have (e.g. that a contractor is actually a contractor, not an employee).

See a previous article about how your contractors may instead be considered employees here.

4. COVID-19 Operational Risk

As you know, the risk of exposure to COVID-19 continues. While there are different ways of dealing with this, some practices have accepted a degree of risk but not all have not considered ways to mitigate this risk.

When a staff member or a patient has come into contact with a positive case, there have been a number of practices that have had to be shut down for as long as two weeks. Naturally, this would have a significant impact on your practice and patients if it were to occur.

One way to mitigate this risk is by allowing staff members to have a flexible work schedule and work in two teams. By splitting your workforce, cross-contamination among staff members can be prevented.

This is achievable by continuing to have a telehealth team who can work from home and deliver online. This is particularly wise for practices with at-risk patients and an aging population in their database. Then, in the event of exposure, the other team will be able to continue on-site.

In the end, your practice will need to have an action plan in place for what happens if a team member is exposed to COVID-19. A significant amount of time should be dedicated to managing employees in the coming months, as we adjust more to COVID-19 and its new strains, becoming present in the community.

Get your house in order for 2022

As always, risk is ever-present in business, but a good governance structure can minimise this. There are various areas (that have had particular focus turned to them throughout the pandemic), including:

Occupational Health & Safety (reviewing generally, COVID-related risks and remote work)
Sexual Harassment policies
Privacy policies
Telehealth policies
Cyber risks (online booking, practice management software and general systems)

Overall, a good governance strategy for your practice all boils down to having proper insurance in place and making sure that you are not over or underinsured.

In 2022, we expect that the increased risks related to the bushfires and the pandemic, along with inflation will be considered by insurance companies, which may result in an increase in insurance. Rather than allowing your policies to rollover, now is a good time to have your insurances reviewed by an independent third party.

Your risk appetite will impact how you interpret the risks outlined above. However, being aware of these risks provides you with an opportunity to take steps to organise a review of what you have in place currently, and to be best prepared for the year ahead.

Medical Practice Clients Overpaying For Insurance?

Independent Practitioner Arrangements: Payroll Tax Case

The You Legal team works with medical practices of all sizes, across Australia to review and mitigate risk. To minimise your risk this year, book a time to discuss your practice with one of our specialists. Connect with us here.