Medical practice structure and practice services agreement
Structure your medical practice correctly and protect yourself from the liability of other practitioners.
What is a practice services agreement and why does it matter?
A practice services agreement is the contract that governs the relationship between a medical practice owner and an independent practitioner who uses the practice’s facilities, staff, and systems in exchange for a service fee. It is the key document that establishes that the independent practitioner operates their own practice and that the practice owner is not liable for the practitioner’s clinical obligations. Without it, the nature of the arrangement is legally ambiguous, creating exposure for both parties in relation to tax treatment, employment law classification, and professional liability.
How do I know whether a doctor is an independent practitioner or my employee?
The distinction turns on the degree of control the practice owner exercises over how the doctor performs their clinical work. A doctor who works under your direction and control is likely an employee. A doctor who operates independently and sets their own terms of practice is likely an independent practitioner. Getting this classification wrong has significant tax and liability implications, so it is important to get legal advice before you structure the arrangement.
Can I use a standard template for a practice services agreement?
Generic templates rarely capture the specific arrangements of your practice. They may omit important provisions, use terms that do not reflect your actual arrangement, or fail to address the regulatory and liability issues specific to medical practices. We recommend a purpose-drafted agreement that accurately reflects how you and the practitioner intend to operate.
Clarify your structure
Limit your liability
Protect both parties
Structure your practice before the gaps become problems.
The right documentation protects your practice and every practitioner in it.
Many medical practice owners operate for years under informal arrangements or outdated documents that do not reflect how the practice actually works. An arrangement that was appropriate when the practice started may no longer reflect the current relationship, the current number of practitioners, or current legal requirements. When a dispute arises, or when the ATO or a professional body asks questions, the absence of clear, current documentation creates problems that could have been avoided.
- We will advise on the appropriate legal structure for your practice arrangements.
- We will draft a practice services agreement for independent practitioners.
- We will draft employment contracts for employed practitioners as required.
- We will advise on partnership and shareholder structures where relevant.
- We will update your company constitution or shareholder documentation where needed.
A new doctor is joining your practice
What's included in your medical practice structure service
- Practice structure advice.
- Practice services agreement drafting.
- Employment contract drafting as required.
- Partnership agreement or shareholder documentation as required.
- Company constitution review or update as required.
The relationship between a practice and its doctors needs to be documented clearly and correctly.
A medical practice that allows other practitioners to use its facilities and staff is entering a legal and commercial relationship that needs to be carefully structured. Without a practice services agreement that clearly defines the arrangement, a practice owner can find themselves exposed to the professional liabilities of independent practitioners, in dispute over the basis of the service fee, or unable to enforce their rights if a practitioner leaves.
These are problems that are significantly more expensive to resolve after they have arisen, but can be prevented with clear documentation.
From informal arrangements to a properly documented practice
We will advise you on the right structure for each practitioner relationship in your practice and prepare the documents that make it work. Whether you need a practice services agreement for an independent practitioner, an employment contract for an employed doctor, or documentation for a partnership or corporate structure, we will ensure the arrangement is clearly documented, legally sound, and consistent with how you actually intend to operate.
If your existing documents are outdated or inadequate, we will identify what needs to change and implement the updates.
From informal arrangements to a properly documented practice.
Advise on structure
We assess your practice arrangements and advise on the appropriate legal structure for each relationship.
Draft the documents
We prepare the required agreements and constitutional documents tailored to your practice.
Finalise and implement
We execute the documents and ensure all parties understand their rights and obligations.
Commercial lawyers experienced in advising medical practices on structure, agreements, and documentation.
We understand you want to know the cost, before we get started.
We will map out our process, from beginning to end, so you know what the journey will look like before you get started.
We will provide you with a clear and detailed Work Proposal covering each step along the way.
Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.
Our great lawyer guarantee
We want to be part of your team over the long term. We achieve this by adhering to these core principles:
Take the time
We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.
Share our knowledge
We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
Stick to our knitting
We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.
Work as one team
Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
Fair pricing
For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.
It's your show
We're not in this for our egos. We're in it for a front row seat to witness your success.
