In part two of her series on setting up a clinic, health practice legal expert KAREN CROUCH provides a comprehensive checklist, including many elements that often slip through the cracks.
Following last month’s article on starting a practice, we move to the next phase to ensure your clinic begins on the right note. However, to proceed with certainty, we must assume the following preliminary tasks have been performed to the owner’s satisfaction:
• Business plan & feasibility study: Aspiring owner/s have carefully analysed all ‘foundation’ steps to ensure a clearly documented ‘road map’ of their plans for the venture, including financial elements, and new owner/s are confident the venture will provide high quality healthcare and reasonable rewards (profits);
• Business structure: A well-defined structure has been created and can be used to secure premises and for applications to finance lenders;
• Area/premises selection: Owners are comfortable with the demographics of their operating area. A suitable premises has been selected, occupancy terms and conditions negotiated, and it is ready to be fitted out;
• Finance approval: An application has been submitted to a lender and ‘in principle’, if not formal, approval received.
You are now ready and eager to move to Phase Two comprising:
• Design: Owners, with design specialists, must define the ‘look and feel’ of the premises. Room design speaks volumes about patients’ perception of healthcare and personalised attention they will receive.
• Fit out & construction: Apart from overarching project plans to establish the new practice, this component deserves meticulous planning as several interdependent suppliers, including council/complying development certificate (CDC) approval, must be coordinated to ensure timely completion. Roles of external service providers must be performed in sequential order to ensure no stone is left unturned.
• Mid-term review: A project plan ‘progress review’ should identify delays in deliverables or missed targets. Remedial action must be taken along with suitable modifications to plans. If the delay will impact any milestone dates, possibility of a start date deferral may require consideration.
• Testing to go live: Probably the most critical activity to ensure all equipment and facilities function smoothly and that staff are familiar with technological aspects of their roles.
• Business insurance: The business must be insured against events that may negatively impact operations, including relevant professional insurances.
• Recruitment: Engagement of administrative/clinical employees are undertaken in parallel with aforementioned activities, including execution of various employee contracts. This critical task requires time and effort involving job advertisements online and other media, receipt and screening of resumes, interview appointments, interviewing. To recruit appropriately, position descriptions must be prepared and management structures, administrative and clinical, finalised so recruiting personnel (agents or owners) fully understand the type of person required for each role.
• Other (practice & business management) plans: These background actions are undertaken so staff have clear reference sources for performance of tasks/jobs and that all necessary tools are accessible e.g. budgets, monitoring, risk management, supplier management, staff induction and assessments, records management, policy & procedure manual, meetings and board/owners’ management plans.
Other set-up to consider
• Practice furniture: Usually selected by owners, should be colour coordinated and compatible with general office layout and branding;
• Logo design & business documents: Design specialists should develop a pictorial theme that depicts the business on all documents.
• Website & marketing: Creation of a meaningful, informative website is a modern day essential. It may also take patient bookings and other communications. Professional web designers are usually engaged.
• Technology – hardware & software: There are various software applications for practices and familiarity with more than one will help selecting the most appropriate.
• Medical equipment/furniture/supplies: A clinical person should review available options and select the most suitable.
• Security: Engagement of a security firm is straight forward but internal facilities must also be installed to secure premises and alert the security firm if required. Purchase of an office safe may be necessary.
• Signage: An important aspect, displaying the practice name, as it advertises services offered and professionals administering them.
• Telephone system: Usually arranged by contract with a reputable supplier but may require knowledge of a few to select from.
• Maintenance contracts: Usually provided by suppliers but require careful scrutiny to ensure adequate cover e.g. after hours.
• Waste disposal: A facility secured through an experienced provider.
• Miscellaneous: Toys and TV may be some items necessary for a well-equipped waiting room.
Summary
This particular phase is key to the practice’s start-up, ongoing operations and success. Engagement of an experienced organisation/s is essential to achieve a professionally coordinated effort. Our next article will cover implementation of the “go live” phase.
ABOUT THE AUTHOR: KAREN CROUCH is Managing Director of Health Practice Creations Group, a company that assists with practice set-ups, administrative, legal and financial management of practices. Email: kcrouch@hpcnsw.com.au or website: www.hpcgroup.com.au
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