If you are a Medical Professional you must have Have a Written Contract to manage and mitigate your risks.
First, we recommend you have a written contract which details both parties’ obligations,
agreed upon fees, the services provided, any termination conditions and your rights in regards to disputes, etc. This contract will clarify that the room rental practitioner is in fact running their own business and thus responsible for their errors. First and foremost they must have Australian Medical Indemnity Insurance, as well as, workers comp and public liability. And, if you are renting space to a doctor, request to see their Doctors Medical Professional Indemnity Insurance.
Medical Professional Indemnity Insurance for those with with a receptionist or nurse
If you happen to be a healthcare practitioner with a receptionist and a nurse and you most probably have your own personal Medical Indemnity policy that covers you. Be careful, you might discover that if your reception staff makes an error on a patient of the room rental doctor (e.g. like poor patient communication at the reception desk), you may find your own medical indemnity insurance will not cover that. You might need a separate Practice Medical Insurance Policy.
Depending the feel and design of the rooms, the room rental practitioner might look like a part of your business. So be careful that have done all the due diligence possible, in fact do the same level of due diligence as you would if you were hiring them yourselves. Certainly, your reputation is truly a highly valued asset, so take as much time as you need to choose the right room rental practitioners.
As an independent business, you are responsible for your errors, so take the time to ensure you understand what you are signing up for.
Finally, having an insurance broker as part of your team is one of the best risk management actions you can take. Use a broker who specialises in the medical field, as the risks in medical practice are unique and complex. A broker will provide you advice on your circumstances, just as your lawyer or accountant does.
This publication is general in nature and is not comprehensive or constitute legal or medical advice. You should seek legal, medical or other professional advice before relying on any content, and practice proper clinical decision making with regard to individual circumstances. Persons implementing any recommendations contained in this publication must exercise their own independent skill or judgment or seek appropriate professional advice relevant to their own particular practice. Compliance with any recommendations will not in any way guarantee discharge of the duty of care owed to patients and others coming into contact with the health professional or practice. Tego Insurance Pty Ltd is not responsible to you or anyone else for any loss suffered in connection with the use of this information.
Eric is the CEO of Tego, an insurance agency offering specialist indemnity insurance solutions for the healthcare and life sciences sectors. His qualifications include a bachelor’s degree in business and law, a master’s degree from UNSW in law and management and an MBA from the AGSM.