Running a medical, dental or allied health practice
Clinical skill builds a reputation, but a practice also has to run as a business - with billing, records, staff, marketing and compliance all done right. This guide covers the business essentials for GPs, dentists, physiotherapists, psychologists and other health practices, including the strict rules on health advertising and privacy.
In short
- Registered practitioners must keep their Ahpra registration current, and need Medicare provider numbers for each location where they bill Medicare.
- All health service providers are covered by the Privacy Act, whatever their size, so health records must be handled and secured carefully.
- Advertising a regulated health service can't use testimonials about clinical care, and must be accurate and not create unreasonable expectations.
- Clear fees, informed financial consent and easy payment options reduce disputes and bad debts.
- Good practice software, documented procedures and a strong front-desk team free clinicians to focus on patients.
Who this guide is for
This guide covers the business side of running a practice: medical and GP clinics, dental practices, and allied health practices such as physiotherapy, psychology, podiatry, chiropractic, occupational therapy, speech pathology and dietetics. It doesn’t cover clinical standards, which are set by each profession’s board and professional body.
Registration and provider numbers
- Ahpra registration. Practitioners in the regulated professions must be registered with the relevant National Board through Ahpra, and keep registration, continuing professional development and professional indemnity arrangements current. Check the register for every practitioner you engage.
- Self-regulated professions (such as dietitians, speech pathologists and exercise physiologists) usually require membership of their professional association to access Medicare and private health fund rebates.
- Medicare provider numbers. Eligible practitioners need a provider number for each location where they provide services and bill Medicare. Services Australia handles applications, mostly online through Health Professional Online Services (HPOS).
- Private health funds, the NDIS, workers’ compensation and DVA each have their own registration and billing rules. Register only for the schemes you’ll use, and learn their requirements.
- Business registrations: ABN, business name, and any state or local requirements for your premises. See Registering a business.
Choosing a practice model
| Model | What it is | Things to consider |
|---|---|---|
| Solo practice | You own and run your own practice | Full control; all the admin and risk is yours |
| Group practice | Several practitioners share premises and costs | Shared overheads; need clear agreements |
| Service arrangement | Practitioners pay a practice a fee for rooms and services | Common in medical and dental; arrangements need careful structuring |
| Mobile or telehealth | Services at patients’ homes, workplaces or online | Low overheads; travel, safety and technology |
| Joining an established practice | Working within someone else’s business | Less admin; less control |
The way practitioners are engaged (employees, contractors or service arrangements) has legal and tax consequences. Get advice from an accountant and lawyer who work with health practices. See Joint ventures and business partnerships.
Premises and fit-out
Health premises often need more than an ordinary office: accessible entry and bathrooms, treatment rooms with privacy and soundproofing, clinical hand-washing, storage for records and medicines, waste disposal (including clinical waste), and infection control. Check zoning and approvals with the council before you sign a lease. See Setting up an office.
Fees, billing and payments
Money conversations are easier when they happen up front.
- Publish your fees clearly on your website and at reception, including gap fees and cancellation fees.
- Get informed financial consent before treatment, especially for longer or more expensive treatment plans.
- Explain rebates clearly: what Medicare, private health funds or other schemes cover, and what the patient pays.
- Offer easy payment at the time of service, including on-the-spot claiming where available.
- Have a clear policy for cancellations, no-shows and unpaid accounts, and apply it consistently.
- Follow billing rules carefully. Medicare and other schemes audit claims, and incorrect billing can lead to repayments and penalties.
See Getting paid and Bookkeeping basics.
Health records and privacy
Health information is among the most sensitive personal information. The OAIC says the Privacy Act covers health service providers regardless of turnover, so even a one-person practice must comply with the Australian Privacy Principles.
- Have a clear privacy policy and tell patients how their information is used and shared.
- Collect only what you need, and get consent where required.
- Secure records: strong passwords, multi-factor authentication, access only for those who need it, encrypted devices and reliable backups.
- Know how patients can access their records.
- Have a plan for data breaches: the Notifiable Data Breaches scheme can require you to notify affected people and the OAIC.
- Keep records for as long as your state’s laws and your profession’s guidelines require.
See Cyber security and backups. Practice software providers and professional bodies have detailed guidance.
Advertising a regulated health service
Health advertising has stricter rules than most businesses face. Under the National Law and Ahpra’s advertising guidelines, which apply to anyone advertising a regulated health service (practitioners, non-practitioners and businesses), advertising must not:
- be false, misleading or deceptive
- use testimonials or purported testimonials about the clinical aspects of a service (symptoms, diagnosis, treatment or outcome)
- create an unreasonable expectation of beneficial treatment
- offer gifts, discounts or inducements without stating the terms and conditions
- encourage the indiscriminate or unnecessary use of health services.
Practical points from Ahpra’s guidance:
- Reviews about non-clinical things such as friendly staff, parking or opening hours can be used.
- Your own social media pages count as advertising, so you’re responsible for removing clinical testimonials posted there, or turning off reviews where you can.
- Third-party review sites you don’t control are generally not your responsibility, but responding to or republishing a review can turn it into your advertising.
- Don’t edit reviews selectively to make them compliant.
- Be careful with before-and-after photos, claims about treating conditions, comparisons and titles.
Ahpra’s advertising hub has a testimonial tool and a checklist. Your professional association can also help. Consumer law applies too. See Customer service that keeps customers coming back.
Staff and systems
- The front desk shapes the patient experience. Train reception staff in bookings, billing, privacy and handling upset patients.
- Practice management software for bookings, clinical notes, billing, claiming, reminders and reporting. Check how it secures data and where data is stored.
- Documented procedures for opening and closing, infection control, incident reporting, complaints and emergencies.
- Online bookings and reminders cut no-shows.
- Telehealth needs secure video, consent and clear processes.
For hiring, check the Fair Work Ombudsman and any relevant award, and get advice. See Hiring your first employee and Workplace health and safety.
Growing the practice
- Build referral relationships with GPs, specialists and other practitioners, with permission-based, professional communication.
- Keep your online profiles accurate: business listings, health directories and your website.
- Share genuinely useful health information that complies with the advertising rules. See Content marketing and blogging.
- Track where new patients come from. See Measuring marketing.
Common questions
Does the Privacy Act apply to a small health practice?
Yes. The OAIC says the Privacy Act covers health service providers regardless of turnover, so even a one-person practice must comply with the Australian Privacy Principles and handle health records securely.
Can a health practice use patient testimonials in advertising?
Not about clinical care. Ahpra’s advertising guidelines say advertising a regulated health service must not use testimonials about clinical aspects such as symptoms, diagnosis, treatment or outcome. Reviews about non-clinical things, like friendly staff or parking, can be used.
Do I need a Medicare provider number for each location?
Eligible practitioners need a provider number for each location where they provide services and bill Medicare. Services Australia handles applications, mostly online through Health Professional Online Services (HPOS).
How can a practice reduce billing disputes?
Publish fees clearly, get informed financial consent before treatment, explain what Medicare, private health funds or other schemes cover, offer easy payment at the time of service, and apply a clear policy for cancellations and unpaid accounts.