We Were Right About Medicare Audits & Doctors Contracts! Best Practice News Alert No 175

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CURRENT CIRCULATION: DATE: ISSUE NO:

7802 th 9 December, 2010 175

Welcome to Health & Life’s free email newsletter service. Tell a friend that we would be happy to add their email address to the distribution list. This service is to provide Health and Life’s clients and those who attended our presentations with up to date information on key financial and Practice management issues that may affect your Practice. Please do not use this as a substitute to seeking professional advice. Writer in charge: Mr David Dahm BA.Acc, FCPA, FTIA, Ffin, FAAPM, GLFG.

Breaking News Update - We Were Right About Medicare Audits & Doctor’s Contracts!

STOP PRESS th

1. Medicare Audits – PSR Forced to suspend prosecutions on the 30 November 2010 nd

This is a quick update from our news alert edition No. 174 issued on the 22 November 2010. We did receive numerous emails of support. We thank those people who supported our position and especially those individuals that have brought this issue to the attention of their medicopolitical and parliamentary representatives. This is the second time we have caught the government out breaking their own laws. The last time was with their pathology kick back legislation in relation to setting a fair rental price for pathology collection centres. (See: News Alert No. 173. The Spare Consulting Room. Email us at pa@healthandlife.com.au if you don’t have a copy). We did receive feedback from one reader stating that I was causing unnecessary ‘paranoia’. I am pleased to report my paranoia was not unfounded and the issues that I raised made the th second page of the Australian on the 30 November 2010 titled the ‘Medicare Rorts Watchdog put on hold’. The Federal AMA Vice President Dr Steven Hambelton has called for ‘natural justice is seen to be done’ which is what we called for a week earlier. We understand a feature story will be issued in the forthcoming Weekend Australian. We were interviewed so you never know you may read about this again. The Australian has reported the Professional Standards Review Committee have had 40 prosecution cases put on hold and uncertainty in relation to past decisions have been brought into question due to a failure to appropriately nominate panelists. All panelists have subsequently been forced to resign. For more information see: http://www.theaustralian.com.au/national-affairs/health/medicarerorts-watchdog-put-on-hold/story-fn59nokw-1225962962770 Our concerns still remain and since our broadcast there have been numerous legal commentators in the media questioning the Federal Governments position of over riding the natural justice rules and their legality. We anticipate there will be much more activity in this area. th

It is interesting to note that in the Advertiser on the 7 December 2010, former Foreign Minister Alex Downer comments on the WikiLeaks issue and the Invasion of Privacy this has caused Governments. More importantly, how powerless Governments from all over the world have been to protect confidentiality. In his arguments, he specifically uses the example of medical records. Readers will recall the Australia Card debate which raised concerns about mandatory recording and reporting of patient information and its ties to accreditation and medical board registration.


The WikiLeaks debacle can only highlight this real concern where patient information may not ever be securely protected. Until these matters are resolved the collection of patient data and the financial incentives that are being used to induce doctors and practices to comply should also be suspended.

2. Negligent Doctor’s Insurer sues Primary Healthcare for $1m for not checking patient contact details – this affects all Practices! We also covered in the last edition that practices are becoming vicariously liable for a practitioner’s medico-legal mistakes – one of the biggest problems it can face. (Also see: News Alert No. 173. The Spare Consulting Room. Email us at pa@healthandlife.com.au if you don’t have a copy). The Medical Observer reported on the 3rd December, 2010 that after 2 doctors admitted to not informing a female patient on a timely basis that she had HIV, they were successfully sued for $942,500. It has been alleged the practice failed to keep the patients mailing address details up to date which is what had caused the damage. The insurer Avant is now suing the practice for negligence which is before the Courts. See: http://www.medicalobserver.com.au/news/protocols-underscrutiny-in-primary-court-battle?hash=9836866d9ecb0ed039d62e0461635df5260537134bb2bcca4c14cba57f37a593&utm_medium=email&utm_campaign=Protocols+scrutinised+in+Primary+court+ battle+Medicare+repayments+up+60+Narcissists+no+more+Fish+oil+after+MI+PLUS+Most+commented+articles+Key+ online+comments+Free+classifieds&utm_content=Protocols+scrutinised+in+Primary+court+battle+Medicare+repaymen ts+up+60+Narcissists+no+more+Fish+oil+after+MI+PLUS+Most+commented+articles+Key+online+comments+Free+cl assifieds+CID_95442256ac8a71cb7ef73b4439826c06&utm_source=Email+marketing+software&utm_term=Protocols+ under+scrutiny+in+Primary+court+battle

This is a sobering reminder to all practices to do the following: 1. Be clear on your legal relationship with your doctors/providers and get this in writing; 2. Practice owners need to understand insurance covers only the treating doctor and not only necessarily the Practice. The treating doctors insurer can and will sue the practice to reduce their liability. Avoid employee or contractor arrangements. Overseas and trainee doctors are high risk providers; 3. Practices are not covered for insurance or cannot get cover for any counter or co-joining claims or such cover is too expensive. Owners should ensure they have excellent asset protection strategies to overcome this problem, such as avoiding equity in the family home. We note there is a common weakness in using family trusts that can be fixed. Practices should review their business structures for medico-legal and taxation purposes to ethically avoid any spurious claims. (See: News Alert No. 145. Your Family Trusts are No Longer Safe which was published in the BRW. Email us at pa@healthandlife.com.au if you don’t have a copy); 4. Have signed written agreements with all your providers that exempt and fully indemnify the practice from a malpractice claim made against a treating doctor; 5. Have clear written protocols in the Practice with regards to screening and following up all investigations; 6. Never assume your systems and procedures work all the time. You need to constantly test them. Actively acting on patient suggestions and/or complaints is the best way to achieve this goal as well as following best practice which are not necessarily just accreditation standards. Even a billion dollar listed company can come under scrutiny. Every practice has exactly the same problem; the little things do make a big difference. 7. All providers should check for themselves that the Practice’s systems and procedures support their clinical practice. Get involved in practice accreditation and review any feedback reports to ensure the practice is complying with any accreditation or patient feedback.


Contact us at pa@healthandlife.com.au for more information or a no obligation assessment of your existing arrangements to see whether our proven template agreements, structures and systems can assist in your compliance with these critical obligations.

3.0 2010/11 Seminar Presentations – New Topic “The World’s Best Practice” We are pleased to report we have received a huge response to our new 2010/11 presentation and series called The World’s Best Practice. This is a new presentation and we have already received excellent reviews. It is new material based on 80 years of international research in the US, Europe, Japan and China on what makes a great organisation. It focuses on the simple and effective elements of what makes a great business as opposed to a good one and reveals simple solutions to common day problems that can dramatically lift practice morale, efficiency and work related stress. It will allow principals and practice managers to work more on and not in the practice, doing the fun stuff. We use this for our Director Pathway program presentation that assists in selecting, grooming and mentoring future like-minded owners for your practice. The surprising thing is these ideas cost nothing to implement. For more information visit www.healthandlife.com.au. New Smart Board interactive webinar technology What is new is our Smart Board interactive webinar technology. It is a medium that allows us to have you in our boardroom even though you may be on your home computer in the comfort of your bedroom. We use this technology for meetings as well as our new national seminar series. It allows live voice interaction for up to 1,000 attendees (subject to licensing and topic), polling and exit surveys from the audience. Questions can be emailed and answered live in a group forum, and this technology together with HD video allows attendees to draw on our electronic whiteboard live to a national audience to demonstrate your ideas. Individuals, practices, Divisions and any other organisation - feel free to contact us to find out how we can instantly deliver our high quality training series to your members or practice staff in a cost and time effective way. Below is a summary of dates for our seminars across Australia. At each seminar there is an opportunity to meet with us face to face for a no-obligation discussion of any practice issues you may have. Email us at pa@healthandlife.com.au to pre-book an appointment. If you would like your local medical organisation to host a seminar, forward them this email with our seminar details and copy us at pa@healthandlife.com.au. We will contact them directly about presenting in your local area. We thank you in advance for your interest and support. You would be surprised how it only takes one person to make things happen!

New confirmed programs are detailed below. Please contact the organisations directly for details about the course program, content and costs. More seminars will be announced early next year.


1.

Contact Name

Host and Where

Date

Health & Life National Office – National Webinar Series

Contact us for further information

Emma Gilbertson

Contact Details

Topics

pa@healthandlife.com.au

Key Note Speaker – David Dahm

(08) 8415 5400 The Worlds Best Practice

2hr live interactive meeting

Limited places – Strictly first in best dressed. Please submit your questions prior to the meeting to ensure we can allocate time at the presentation.

February 2011

2.

Health & Life Melbourne Office Essendon Fields House Level 2, 7 English Street

Contact us for further information

Emma Gilbertson

New England Division of General Practice Armidale, NSW

Key Note Speaker – David Dahm

(08) 8415 5400 The Worlds Best Practice

2hr meeting

Limited places – Strictly first in best dressed. Please submit your questions prior to the meeting to ensure we can allocate time at the presentation.

Date - TBC

Essendon Fields, VIC

3.

pa@healthandlife.com.au

80 years of international research into what key things make a great organisation.

Confirmed th

Kyra Moss

Saturday 5 and Sunday th 6 March, 2011

kmoss@nedgp.org.au

80 years of international research into what key things make a great organisation.

Key Note Speaker – David Dahm

(02) 6771 1146 The Worlds Best Practice 80 years of international research into what key things make a great organisation incorporating: 1. Strategic planning so you have a future and; 2. Efficient practices – Have you got the right systems in your Practice?

4.

Manly Warringah Division of General Practice

2011 Details TBC

Sue Cummins

scummins@mwdgp.com.au

Working more efficiently to maximise income.

(02) 9998 0793

Manly, NSW

4.0 Catching up with David Dahm and the Team If you would like to catch up with us the next time we are in your neighborhood feel free to email us at pa@healthandlife.com.au or call for a no obligation chat in relation to any issues you may be concerned about. We are planning trips to Sydney, Melbourne and Perth in the New Year. Alternatively feel free to contact one of our State Offices to arrange a no obligation appointment.


5.0 Where to from here? 1.

Consult your professional adviser in relation to any advice suggested;

2.

If you require any back issues of our news alerts please email us;

3.

If you are not sure about any issues raised in this broadcast contact David Dahm on 1800 077 222 for an initial no obligation consult or email us at pa@healthandlife.com.au. Health and Life provides comprehensive Practice consulting, accounting, taxation and financial planning advice for group Practices and individuals.

Which topics would you like to be covered? If there is a particular topic that you would like covered in one of our future News Alerts, please email pa@healthandlife.com.au and let us know what it is. We will then endeavor to cover your requested topic.

Do we have your email address? It is apparent in feedback we are receiving that there are persons receiving this regular email who are not on our email list. If you are receiving this email ‘second-hand’ from another source, we would be delighted to receive your email address and we will add you to our database so that you can receive it first-hand on the day it is sent. This invitation is open to all medical Practices. Please send your email address to pa@healthandlife.com.au.

Do you wish to unsubscribe from our list? Please email pa@healthandlife.com.au if you wish to be removed from our distribution list. Copyright Notice 2010 This email, including any attachments, is for the personal use of the recipient(s) only. Republication and re-dissemination, including posting to news groups or web pages, is strictly prohibited without the express prior consent of Health & Life Pty Ltd. Disclaimer Notice Health & Life Pty Ltd’s Best Practice News Alert is designed as a comprehensive and up-to-date Accounting, Practice Management and Healthcare news service to alert readers to the latest in Practice and related developments affecting the medical, dental and allied health professions as they happen. It is published when there is news to report. No responsibility can be accepted for those who act on its content without first consulting us or obtaining specific advice. Health and Life Pty Ltd Accounting, Tax, Practice Management and Healthcare Consulting Services. “Looking after your future” National Head Office: Postal Address:

Level 5, 108 King William St, Adelaide SA 5000 GPO Box 11042, Adelaide SA 5001

Telephone: Fax: Email: Web Site:

1800 077 222 1800 077 555 pa@healthandlife.com.au www.healthandlife.com.au


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