YOU NEED A CONTINGENCY PLAN

Psychology Business Owners:  You Need a Contingency Plan

If you run your own psychology practice, it’s important to think ahead about what would happen to your business and your clients if you were suddenly unable to work due to illness, incapacity, or death.

The Psychology Board code of conduct which comes into effect on the first of December this year, stipulates that you:

4.7 a. make arrangements for other practitioners to continue providing services to clients during emergencies or periods of your foreseeable absence,

4.7 b. make reasonable plans for the continuity of service to clients in the event you become unavailable, for example due to your relocation, illness or death,

4.7 c. make reasonable plans for the continuity of service to clients when your relationship must end, including helping clients identify alternative appropriate practitioners and passing on relevant information with clients’ consent when it is practical.  (2024, AHPRA Psychology Board, Code of Conduct for Psychologists)

Having a strong Contingency Plan in place will satisfy these requirements and ensure your clients are supported and your business is managed responsibly in your absence.

How a Contingency Plan Works

Your Contingency Plan appoints another psychologist to step in and manage your patients and practice if the unexpected happens. If you become incapacitated or pass away, your executor (named in your Will) or the person holding your Enduring Power of Attorney will contact your appointed colleague to put the plan into action.

The plan should cover:

• Clients – how their care will continue, including referral to other providers.

• Records – access to and safe storage of clinical files, in line with confidentiality requirements.

• Notifications – informing staff, colleagues, referral sources, insurers, and relevant professional bodies of the situation.

Keeping your executor updated with your appointed person’s contact details is crucial. If you have an office manager, they should also be aware that a plan exists and know the basics of what’s in place.

Keeping Everything Aligned

Your Will, Enduring Power of Attorney, and Contingency Plan should all work together without contradiction. This avoids confusion between your executor, your attorney, and the psychologist you appoint to manage client care.

The level of detail you’ll need to include will depend on:

• The potential risks to your clients if treatment is interrupted (for example, clients experiencing suicidal thoughts versus those awaiting an assessment).

• Whether your executor or attorney has the qualifications to step in directly (e.g., if they are also a registered psychologist).

Practical Matters to Address

There are many practicalities to consider when creating a Contingency Plan:

• Access to your calendar or scheduling system.

• Instructions for passwords, computer access, and keys to filing cabinets.

• Sensitive communication with patients, including explaining what will happen with their records and how long they’ll be stored.

• Clear directions on the secure storage, transfer, or disposal of client records.

Your appointed person should also be able to notify key organisations such as your insurer, the Psychology Board of Australia, and any professional associations you belong to.

Payment for the Appointed Person

Discuss ahead of time how your appointed colleague will be compensated. This may be:

• A one-off payment from your estate (if you have passed away).

• An agreed fee for service (if you are incapacitated).

Review and Update Regularly

Like your Will, a Contingency Plan shouldn’t be “set and forget.” Revisit it every year or so—or sooner if your circumstances change—to make sure it’s up to date and practical.

A Contingency Plan not only protects your clients and practice, but also gives peace of mind to your family, colleagues, and patients knowing there’s a clear pathway forward if the unexpected happens.

Contingency Plan App

I’ve recently come across a very useful contingency planning app created by Australian psychologist Gabrielle McColl. It’s designed to cover a wide range of business functions and provides one central place to store important information—everything from utilities and office access to details you might not have thought of. The plan can be printed or emailed, making it practical and easy to share. It’s comprehensive, affordable, and a really helpful tool for psychologists wanting peace of mind. You can find out more at contingencyplans.com.au.

You can also find my Contingency Plan Checklist