Reviewed 5 September 2026.
Disclaimer: General Information Only
This guide is general information only and is not a substitute for advice on your specific arrangement. Hamilton Bailey is exclusively licensed to use the Tenant Doctor™ trademark in legal documents within Australia.
Tenant Doctor™ arrangements are a model for medical practitioners who wish to practise without the overhead of full practice ownership. This guide covers points to consider.
Quick answers
- What is a Tenant Doctor arrangement? A model where a practitioner runs their own practice from premises operated by a Facilities Service Provider, paying a service fee or a percentage of billings for administrative services and facilities.
- Why does the structure matter? How the fee and the arrangement are set up is relevant to whether payments are characterised as taxable wages. The outcome depends on the whole arrangement and on the relevant revenue authority's assessment.
- What should you check before signing? The fee basis, the services included, term and exit, patient-record ownership, and any restraint clauses (which bind only so far as reasonable).
This guide is general information only and is not a substitute for advice on your specific arrangement.
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 operate is relevant to whether payments are characterised as taxable wages. The outcome depends on the contract terms, conduct, flow of funds and the relevant revenue authority's assessment.
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
What are the benefits?
- Lower startup costs compared to practice ownership
- Shared administrative burden
- Immediate access to established patient base
- Flexibility to focus on clinical work
What are the risks?
- Less control over practice operations
- Potential disputes over patient ownership
- Variable income based on fee structure
- Dependence on decisions of the Facilities Service Provider entity
What legal points should you check?
Before signing any tenant doctor agreement, we recommend:
- 1Having the agreement reviewed by a solicitor experienced in healthcare law
- 2Understanding your obligations under the agreement
- 3Negotiating terms that protect your interests
- 4Supporting 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.