What is a Tenant Doctor Agreement?
A tenant doctor agreement (TDA) is a contractual arrangement between a practice owner and a medical practitioner who will work from the practice premises. Unlike a traditional lease, a TDA typically covers more than just the use of space – it often includes access to staff, equipment, billing systems, and patient bookings.
Key Elements to Review
1. Fee Structure
The most critical aspect of any TDA is understanding exactly what you'll pay. Common arrangements include:
- Percentage of billings: Typically 30-40% of gross billings
- Fixed rent: A set weekly or monthly amount
- Hybrid models: Combination of fixed and percentage components
Always clarify what's included in the fee – does it cover consumables, staff time, IT systems, and professional indemnity?
2. Patient Ownership
This is often the most contentious issue. Key questions to ask:
- Who owns the patient records?
- What happens to your patient list if you leave?
- Are there restrictions on contacting patients after departure?
We recommend negotiating clear terms that acknowledge the practitioner's contribution to building a patient base.
3. Notice Periods
Standard notice periods range from 1-6 months, but some agreements require up to 12 months. Consider:
- Is the notice period reasonable for your circumstances?
- Are there provisions for early termination in certain situations?
- What happens if the practice is sold?
4. Restrictive Covenants
Many TDAs include restrictions on where you can practice after leaving. Be cautious of:
- Overly broad geographic restrictions
- Excessively long restriction periods
- Unreasonable definitions of "competing practice"
Red Flags to Watch For
- Unclear fee calculation methods
- One-sided termination provisions
- Automatic renewal clauses without notice requirements
- Unreasonable restrictive covenants
- Liability provisions that expose you to practice-wide issues
Our Recommendation
Never sign a TDA without professional review. The cost of legal advice upfront is minimal compared to the potential consequences of a poorly structured agreement.
Contact us for a complimentary TDA review – we'll identify the key issues and help you negotiate better terms.
Lukasz Wyszynski
Principal Solicitor
Expert in healthcare law with over a decade of experience helping medical practitioners navigate complex legal issues.