What You Need to Know About Purchasing a Medical Practice?

Purchasing a medical practice is not to be taken lightly. It is a truly consequential professional and financial decision. At Tego Insurance, we are not just experts on Medical indemnity Insurance Australia and Entity Medical Malpractice Insurance, but we are here to guide you through the major decisions you need to make as a medical practitioner. Here are 6 questions and issues you should consider before you purchase a medical practice. 

What Exactly Are Your Purchasing?

Are you purchasing? Here are some options-

  • A practice’s reputation
  • Business intellectual property
  • Plant and equipment
  • Outstanding debts
  • Property lease and/or equipment
  • Benefit of staff contracts

Be Certain You Understand the Sales Process

There are three major iterations to all sales/purchases-

  • Negotiation
  • Exchange Contracts
  • Completion

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What About the Location and Premises?

Have you decided if you are going to operate from the same location and premises? If you decide to operate from their location and premises, think about obtaining a long lease.

Privacy Obligations

Be certain that in the Sales Agreement, you are covered in regards to the Health Records and Information Privacy Act (2002) (NSW) and the Privacy Act (1988) (Cth) (if applicable).

Do You Need a Restrictive Covenant?

Think about if you want to keep the previous doctor away from your new practice location for an initial time period. If yes, be certain your request is reasonable. 

Keep Communicating

The best way to save money, frustration and your precious time is to keep all communication channels open. Be certain all parties are in the loop so a stalemate will not occur.

Tego Insurance Understands the Business of Healthcare

If you are thinking about purchasing a medical practice, let us help you. We can go over with you the medical malpractice insurance costs and other important issues. We offer medical indemnity insurance for medical practitioners and have a profound understanding of the Australian medical profession and the ever-changing healthcare industry. 

The legal team at Tego Insurance are ready to help you understand the restrictions and standard practices for purchasing a medical practice. With the laws changing, you need to protect not only your patients rights and wellbeing, but also your business and livelihood. From Doctors indemnity insurance and medical professional indemnity insurance to GP medical indemnity insurance, we are experts at providing insurance coverage with more options, innovation and greater flexibility. Contact us to find out more.

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. 

 

By Eric Lowenstein on Monday, April 27th, 2020 in General. No Comments

Eric Lowenstein

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.

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