Tenant Doctor arrangements are an increasingly common model for medical practitioners who wish to practise without the overhead of full practice ownership. This guide covers what you need to know.
What is a Tenant Doctor Agreement?
A tenant doctor agreement is a commercial arrangement where a medical practitioner operates their practice within shared premises, typically paying a service fee, or a percentage of billings, to a Facilities Service Provider that supplies administrative services and facilities. How the fee and the underlying arrangement are structured is critical to whether the arrangement is deemed not eligible for payroll tax.
Key Components
- 1Fee Structure: Most agreements involve either a fixed fee, percentage of billings, or a combination
- 2Service Inclusions: What facilities, equipment, and support staff are included
- 3Term and Termination: Duration of the agreement and exit provisions
- 4Patient Records: Ownership and access to patient records
- 5Non-compete Clauses: Restrictions on where you can practice after leaving
Benefits of Tenant Doctor Arrangements
- Lower startup costs compared to practice ownership
- Shared administrative burden
- Immediate access to established patient base
- Flexibility to focus on clinical work
Risks to Consider
- Less control over practice operations
- Potential disputes over patient ownership
- Variable income based on fee structure
- Dependence on practice owner decisions
Legal Considerations
Before signing any tenant doctor agreement, we recommend:
- 1Having the agreement reviewed by a solicitor specialising in healthcare law
- 2Understanding your obligations under the agreement
- 3Negotiating terms that protect your interests
- 4Ensuring compliance with AHPRA requirements
Conclusion
Tenant Doctor arrangements can offer practical benefits for medical practitioners, but the terms vary widely and proper legal guidance is essential to protect your interests.