Understanding Tenant Doctor Agreements: A Comprehensive Guide

Quick answers

• What is a Tenant Doctor agreement? A commercial contract between a practitioner and a Facilities Service Provider (FSP). The practitioner runs their own practice from the FSP premises and pays a service fee, or a percentage of billings, for administrative services and facilities.
• What should you check first? The fee basis, what is included, who owns patient records, the exit terms, and any restraint.
• Should you sign without a review? No. The cost of a solicitor review is small next to the cost of a poorly structured agreement.

This guide is general information about Australian arrangements. It is not advice on your particular contract.

What is a Tenant Doctor agreement?

A Tenant Doctor agreement is not a simple room lease. It usually covers access to staff, equipment, billing systems and bookings, as well as the premises. How the fee and the rest of the arrangement operate can be relevant to whether payments are characterised as taxable wages. The outcome depends on the contract, the parties' conduct, the flow of funds, and the relevant revenue authority's assessment.

What to review before you sign

Fee structure

The fee is usually the clause that matters most. Common models include:

• Percentage of billings — often in the range of 30 to 40 percent of gross billings
• Fixed fee — a set weekly or monthly amount
• Hybrid — a fixed component plus a percentage

Confirm what the fee covers: consumables, staff time, IT systems, and professional indemnity are often assumed and not written down.

Patient records

This is often the most disputed clause. Ask:

• Who owns the clinical records?
• What happens to your patient list if you leave?
• Are there restrictions on contacting patients after you go?

Negotiate terms that recognise the practitioner's work in building that patient base.

Notice and exit

Notice periods commonly run from one to six months. Some agreements ask for up to 12 months. Check:

• Whether the notice period is workable for your circumstances
• Whether there is a path to earlier termination
• What happens if the Facilities Service Provider entity is sold

Restraints

Many agreements restrict where you can practise after leaving. Treat these as binding only so far as they are reasonable. Watch for:

• Geographic areas that are wider than the real catchment
• Restraint periods that last longer than needed to protect a legitimate interest
• Vague definitions of a "competing practice"

Clauses that should slow you down

• Unclear fee calculations
• Termination rights that run only one way
• Automatic renewal with no notice requirement
• Restraints that are broader than the work you actually did
• Liability clauses that put practice-wide risk on you

What this means in practice

Do not sign a Tenant Doctor agreement without a solicitor who works in healthcare law reading it first. Hamilton Bailey can identify the clauses that matter and help you negotiate terms that fit the arrangement you actually intend to run.

Book a consultation if you want the agreement reviewed before you sign.