The shifting legislative landscape around medical payroll tax is creating the obvious headaches for practices – concerned with whether they are going to be hit with a large cumulative tax bill at some point. But what about the indirect costs? The growing need for more stringent financial compliance measures in your practice, the increased workload on doctors and administrative staff, the rising cost to serve patients and how this affects their experience, and the opportunity cost of business capital that’s now going to the taxman.

The other glaring issue is the increased demand for GPs by clinics. With older generations of doctors feeling burnt out and fewer junior doctors and graduates opting into general practice, we are amidst the beginning of a talent crisis that will only see the cost of recruiting quality practitioners go up. In fact, the Australian Medical Association published a paper in November 2022, demonstrating that Australia could be facing a shortage of more than 10,600 GPs by 2031-32.

To ensure practices remain competitive, principals and practice managers will have to drive effective change that supports practitioner retention and improves practice productivity.

Here are 10 strategies you can begin to incorporate into your practice to help ensure you’re still standing once the dust settles.
 

1. Attractive Facility Services

Facility services in a healthcare setting extend beyond physical space, encompassing the administrative, technological, and operational infrastructure that supports medical professionals. For tenant doctors, an environment that offers a seamless experience is key. This includes advanced appointment systems, efficient billing and electronic medical records (EMRs), and a professional support staff. For instance, a clinic can invest in a state-of-the-art EMR system that integrates patient records, appointment scheduling, and billing, eliminating the administrative burden from doctors. This not only enhances the efficiency of doctors' work but also impacts their satisfaction and inclination to continue practicing from the same location. When doctors feel supported by a competent team and top-notch facilities, they can focus on patient care, thereby increasing their likelihood of long-term association with the practice.

2. Flexible Terms and Conditions

Flexibility in tenancy terms reflects an understanding of the varying professional and personal needs of doctors. This involves creating rental agreements that consider part-time schedules, shared spaces, or even expansion possibilities for growing practices. For example, a clinic could offer a 'hot-desking' system for doctors who don’t need a full-time space or a revenue-share model that aligns with the doctor's patient volume. Such models not only provide financial flexibility but also demonstrate an adaptability to doctors’ changing needs. This adaptiveness can be particularly attractive, increasing the tenure of doctors at the practice and fostering a dynamic, accommodating work environment that benefits both sides.

3. Collaborative Environment

A collaborative environment in a healthcare facility is one where knowledge, skills, and experiences are shared, creating a culture of continuous learning and mutual support. This could involve regular interdisciplinary meetings, case reviews, or a mentorship program. For example, implementing a bi-weekly case conference where doctors discuss common issue or experiences and share insights can foster a sense of teamwork and collective intelligence. This collaborative spirit not only enriches the doctors' professional experience but also anchors them to a community of peers, making the practice a more appealing place to work. Additionally, such an environment enhances the quality of patient care, ultimately reflecting positively on the practice’s reputation and productivity.

4. Marketing Support

Marketing support involves assisting doctors in patient acquisition and retention through various promotional strategies. This can include digital marketing efforts like SEO-optimised websites, social media campaigns highlighting doctors’ specialties, or traditional methods like community health workshops led by the doctors. For instance, a clinic might facilitate a targeted online ad campaign to help a new tenant doctor build their patient base. Effective marketing support not only fills doctors' schedules but also cements their loyalty to the practice by contributing to their individual success. Furthermore, a thriving patient base is directly proportional to the practice’s productivity and standing in the community. A shared services model can also lower the cost per practitioner and doesn’t necessarily require a permanent internal resource to manage this.

5. Technology and Innovation

Embracing technology and innovation means providing cutting-edge clinical and administrative technology that enhances the healthcare delivery process. This includes investments in the latest medical equipment, telemedicine platforms, health informatics  and practice management systems. A practice might, for example, introduce a new telemedicine solution that allows tenant doctors to consult with patients remotely. Access to such technology not only attracts and retains tech-savvy doctors but also improves the efficiency and scope of healthcare services, increasing patient satisfaction and drawing more professionals to the practice.

6. Transparent Communication

Transparent communication involves open, two-way channels of communication between the practice management and tenant doctors. This can be achieved through regular meetings, suggestion boxes, or digital platforms for sharing updates and feedback. An example would be a quarterly meeting where management discusses facility updates, financials, and future plans. This transparency builds trust and gives doctors a sense of ownership and inclusion in the practice’s future, thereby enhancing their allegiance. Additionally, open communication can lead to innovative ideas and improvements that boost the practice’s overall productivity and service quality.

7. Professional Development

Professional development in a healthcare setting means facilitating continuous learning and skill enhancement. This can be through funding educational courses, providing in-house training, or offering time off for educational pursuits. For example, a clinic could partner with a medical school to provide tenant doctors with access to the latest research and training. Such opportunities signal a practice’s commitment to its doctors' growth, which not only aids in retention but also ensures that the practice is always at the forefront of medical advancements, thereby attracting more patients and professionals.

8. Enhanced Patient Experience

Enhancing patient experience is about ensuring that patients’ interactions with the practice are positive at every touchpoint. This could involve streamlining the appointment process, reducing wait times, or providing additional patient comforts like a well-maintained waiting area with amenities. For instance, a practice could implement an online check-in system that reduces paperwork and wait times. A superior patient experience reflects well on the tenant doctors, increasing their patient retention rates. Happy patients are likely to return and refer others, contributing to a thriving practice.

9. Financial Incentives

Financial incentives for tenant doctors can take various forms beyond just competitive rental rates, such as sign-on bonuses, profit sharing, or investment opportunities in the practice. For example, a clinic might offer reduced rental rates for the first six months to new doctors or provide an opportunity for high-performing doctors to become stakeholders in the practice. These incentives show doctors that they are valued and that their contributions have tangible rewards, thereby encouraging long-term tenancy. Moreover, when doctors are financially invested in the practice, they are more likely to contribute positively to its growth and success.

10. Community Integration

Community integration involves establishing strong ties with the local community, positioning the practice and its doctors as integral parts of the community’s healthcare ecosystem. This could be through health fairs, community education sessions, or partnerships with local schools for health programs. For instance, tenant doctors could lead regular community health seminars, solidifying their role as trusted healthcare providers in the area. This not only endears doctors to the community but also ties them to the practice’s community-centric mission, enhancing their commitment to the practice. Furthermore, strong community ties ensure a consistent patient base and elevate the practice’s standing within the local area.

For a practice to effectively implement any of these strategies, they need to have a clear snapshot of their financial position, what the initiative will cost and its expected return on investment, as well as the ability to measure its performance and value to the business over time. None of which is possible without establishing robust accounting and financial management processes.

Whether your practice is just trying to remain compliant with the turbulent legislative amendments to state-based payroll tax, or you’ve got your sights set on exponential growth, it will be imperative that you have access to consistent, accurate and timely financial data. Without it, your practice is flying blind and will not only struggle to grow and thrive but could also fail to meet regulatory obligations. Potentially landing you in hot water with the ATO or Commissioner of State Revenue.

As with practice marketing, accounting and financial management lends itself well to being provided under a shared services or outsourcing model. A cost effective and highly proficient outsourced finance model for medical businesses is the Hybrid Outsourcing Model – where local, industry-backed expertise is supported by world-class international execution to deliver you a complete solution. At less than the cost of one full-time internal resource.

When looking to outsource the financial arm of your practice or medical centre, you want to partner with an organisation that can act as an extension of your existing team. Integrating seamlessly into your business and improving operations and performance from the start. Finding your outsourced accounting A-team can be challenging and there are several key characteristics that you should be aiming for. This includes but isn’t necessarily limited to – a committed and experienced team of professionals, an established methodology and infrastructure, level of service and a team that meets your specific needs, ensures real-time information with proactive advice, a passion for small business and creating a win-win, and adequate security processes to protect sensitive patient data and proprietary business IP.

While there is reason for concern with continued payroll tax amendments and its cascading impacts on medical and health practices, there is a somewhat clear path through the chaos. Building a robust financial system within a business culture that can embrace change and development, will set your practice up for years of on-going success, come what may.

If you’d like to discuss optimising your practice’s accounting and financial management system, book a discovery call with Aretex Medical Partner, Anita. She would be delighted to help with any queries you might have.

Alternatively, you can contact us here.

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