The market value of a pathology rent is an unnecessary concern for practices. Our blog series on pathology rents demonstrates there is a right way and a wrong way to negotiate rents.
2020 COVID-19 Practice Pathology Collection Centre 50% Rent Reduction Alert
According to the Royal Australian College of General Practice all major pathology corporations are requesting a 50% reduction in their rent from General Practice.
As the Guardian media nationally reported David Dahm from Health and Life had estimated a $7,000 to $15,000 p.a. of lost income per Full time equivalent GP.
If you accept you may be insolvent and be forced to increase what service fees you charge your GP’s to keep your doors open.
If you have received one of these letters you do not have to agree.
Click on this template on how to respond and for more information on what to do next.
Leases
There are up to two types of leases that we have produced with an independent law firm, a practice may have namely:
Head lease Commercial property leases between property owners and the practice to ensure they are sub-lease friendly and encourage succession planning.
Sub-lease These are leases where there is a head lease in place where the tenant has an opportunity to sub lease the same premises. The deregulation of pathology licences on 1 July 2010 resulted in a ‘gold-rush’ of pathology collection centres being established in general practice. For Health and Life clients only, we also introduced a lease tendering service to ensure competitive rates are paid for collection centres.
How do we get the best leasing deal for you
- Do not accept corporate prepared contracts without seeking independent legal advice.
- We tender out with all corporate head offices with special buying power due to our national client base, so we can usually secure a better deal than you can so a fair market value is achieved.
- We prepare a national expression of interest to ensure you get the best and fairest deal for practice than can fund your practice expansion so you can build better facilities and services for your patients.
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We can provide an independent valuation for your practice if you are concerned about complying with the Red Book pathology market rental valuation rules. Note criminal prosecutions may apply if excessive rent is being paid to practices.
Contact us for more information.
Who do you contact about legal questions?
If you have any legal questions in relation to the practice agreements Template documents, then you can use the legal helpline that the law firm Hamilton Bailey Legal and Maddox Lawyers (via Cleardocs) provides to Health and Life. They are our preferred independent lawyers. They sign-off on master documents.
The first thing to do is ring us. We will arrange for you to speak with the right legal firm for you.
If you require other legal advice in relation to your particular circumstances, then this will be charged for.
Our number is 1800 077 222.
For more insights visit our blog.
About me: David Dahm BA (Acc.), CA., FCPA, CTA, FFin, CPM, FAAPM, FAIM, FGLF.
Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service
David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)
After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.
You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.
