Why is Health and Life offering free support?
Unfair demands are being placed on your practice.
We need you stay strong and focused on solving the right problem, the right way the first time around.
At Health and Life we want patients keep in touch with your GP. We want to keep GP practices open and remain strong so the local hospital does not get overwhelmed.
Against public interest, this issue potentially can systematically affect our GP front lines that we need to attack the virus.
Pathology Collection Centre Demands a 50% Reduction may unfairly and irreversibly hurt your practice
In response to the RACGP report that practices are being forced to unfairly reducing their rents by all major pathology suppliers, it is important to know you do not have to agree.
Of greater concern, is that you may not be able to renew or replace your lease if you make things difficult. It is not clear what the Australian Consumer Competition Commission (ACCC) thinks of any misuse of market competition and or whether this is a cheap way of buying a good local general practice.
Eitherway nobody needs this distraction and telling your doctors to take a pay cut is a concern.
So this is what you could do to ensure a more co-operative process.
What to do next?
1.Contact your trusted experienced healthcare financial and legal advisor
The RACGP recommends, you should seek financial and legal advice now.
If you cannot confidently consult your external accountant, we can help you with free second opinion.
For a free consult if you register for our 101 GP Practice Survival Guide playbook as featured in the Medical Republic article 9 APRIL 2020 Six vital steps to take if your
Do not reinvent the wheel with pathology lease negotiations or documentation.
Health and Life can provide access to independently legally prepared and commercially friendly pathology lease templates. They are prepared by a qualified and experienced lawyer in all states in accordance with the Federal Government Red Book guidelines.
Some advisers often overlook because they are not asked to review the fine print.
To ensure you do not fall foul of any kickback rules see our article
To arrange an initial free consultation go to Health and Life.
2. Use this 50% Reduction Pathology Response Template copyright-free and for more information
The idea is to collect more information to ensure you have a valid basis for responding to the request and working out an appropriate response. The alternative is to permanently risk financial and operational damage to your practice. You never know it may have been a misunderstanding from the pathology lab.
After you have registered for free for our General Practice 101 Survival Guide and Checklist and Playbook Guide you can use and modify the template for your advisers to review in order to respond to a 50% pathology request.
Only use the marked red texted area and amend where appropriate. Consult your external financial and legal advisers first before using.
Template COVID19 Pathology 50% Rent Reduction
[Insert GP Practice Letterhead]
Re: Pathology Laboratory Request to GP Practice to reduce rent – COVID – 19
We write in reference to your letter dated X April 2020 regarding your request to discount the rent that our General Practice (“Practice“) currently charges your Pathology Clinic (“Clinic“).
We acknowledge the concerns you have raised in relation to the impact that the Covid-19 event has caused your business.
We are open to consider your request although it will have an impact on our Practice, which may have unintended implications on your Clinics.
We do not want to run the risk of having to close our Practice or be forced to sell or merge with another due to this request.
For this reason, to consider your request we require your office to provide us with the following information in writing on your company letterhead (Please note that this cannot be provided verbally):
A copy of externally and independently Audited Financial Statements confirming the statements made.
- For example, the Board of Directors, Management and all staff have agreed to a fifty (50) percent pay cut and are eligible for the Job Keeper program and/or Cash Boost. We may require this information, for the Government assistance program.
A Statement of Position whether you are prepared to make good catch up rent for the time period lost. Are you prepared to have any outstanding rent debt factored into your terms e.g. delayed payment or overextended payment periods?
(Health and Life can quickly arrange for the practice to be paid up to 100% of the outstanding rent and the financier can chase the debt – we do not receive any commissions or fees from these arrangements)
In precise terms, written communication on how we can work with you to ensure your Clinic remains viable to enable our Practice to consider whether it is possible to negotiate a rent reduction.
Please confirm you have received this letter in writing, with the approximate date of expected response from your office.
In the event that we do not receive a response from your office in relation to the above-mentioned, we will deem your request to reduce your rent withdrawn or no further action is required. Accordingly, all existing arrangements will remain the same.
Upon receiving your response we will consult our Legal and Healthcare Accounting specialist advisers so that we may respond accordingly.
© Health and Life, 2020
We recommend you seek in writing independent financial and legal advice before acting on this information. We do not accept any responsibility for any harm or loss suffered.
Conflicts of Interest
We do not receive any commissions or fees from suppliers for any advice or recommendations given. The only affiliation is that are a supplier is providing a nominal patron donation. They have voluntarily paid $10 per month for our not for profit project because they share our vision.
They are part of our probono not for profit international healthcare standards and ethics project called the International healthcare standards and ethics board(IHSEB) at www.ihseb.org.au.
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This free template is proudly brought to you by
as featured in the Medical Republic article 9 APRIL 2020 Six vital steps to take if your practice is in COVID-19 distress.