Joining an established private practice: tips and traps

Avant Growth Academy* is a series of two-day, in-person workshops delivering insights specifically curated to empower doctors at each career stage.

We’ve brought together expertise from across Avant’s group of businesses, as well as selected external specialist partners, to deliver a comprehensive program that can can give you the knowledge, skills and tools to help guide your path to success.

Program Director, Steve Macarounas talked to some of the Avant team who will be presenting at our upcoming events in Melbourne in August 2025 about the key considerations for doctors thinking of joining a private practice.

Consider your options

While you can always change your pathway, being clear on your goals and career/lifestyle aspirations up front will help inform the type of practice you join, your contractual relationship and other dynamics.

“Joining an established practice can give you a leg up, reduce the costs of starting out and provide the safety net of immediately starting in a functioning business,” Dr David Williams, a neurologist, practice owner and General Manager, Avant Practice Solutions, says.

However, while following this pathway can seem like a natural step, he says it can often come with unintended drawbacks, which doctors should weigh up.

“Always be clear that there are other options than joining a group practice. Utilising cost-effective practice software and pay-per-use rooms or secretarial services provide highly effective options for setting up your own practice,” Dr Williams says.

Financing options

Fortunately, when it comes to financing a practice as an owner, Kate Farley, Head of Residential Lending, VIC and SA, Avant Finance, says doctors are in the best industry to do this without using their personal assets as security.

“This is achieved by lending options that allow up to 100% of the purchase price for goodwill, equipment, property and fit-out with additional options for funding within super,” she says.

Performing due diligence

If you do decide to join a group practice, doing your due diligence is essential as you are effectively accepting the practice’s standards, culture, processes, cost base and service level.

“This includes understanding the business plan, operations and administration KPIs, staff training, the workflow for managing bad debts, systems for managing data security and privacy, IT strategy, and plans for updating and managing the practice’s software,” Dr Williams says.

If you do discover red flags, discuss these with the practice principals to see how they handle feedback.

Cultural fit

Ensuring you are a good fit for the practice is another important aspect to assess.

“Spend some time with the doctors to ensure you can collaborate effectively, and reach your potential,” Dr Williams says. “It’s also important to understand the practice manager’s skill set and approach, and to get to know the principals to ensure you are aligned.”

Practice support

You should also be mindful of negotiating adequate support. Junior doctors can be relegated to the ‘bottom of the list’ regarding the benefits of working in the practice.

“Be careful that the referrals, access to theatre lists, representations to local referrers and hospitals, on-call rosters and financial structures support you as a fully qualified doctor and not as a ‘lesser valued’ doctor,” he says.

Input into decisions

Agree with the principals how you will provide your input into decision-making processes.

“Without early agreement about how you have ‘your say,’ improvements you find are necessary may never materialise,” Dr Williams advises.

Medico-legal considerations

Understanding and mitigating potential medico-legal risks is essential when transitioning into private practice. Gail Wang, Risk Adviser, Risk Advisory Services, Avant, recommends using this checklist:

Practice support systems

• Are processes in place to minimise the risk of claims and complaints?
• Are there complaint handling procedures?
• Does the practice manager conduct audits and what type?
• Are there efficient systems for recalls and follow-up?
• How are after hours urgent test results managed and are doctors on call 24/7 or are after hours deputing services used?

Clinical meetings

• Does the practice hold regular clinical meetings and how frequently?
• What issues do the meeting minutes reveal and what actions have been taken to address them?

Privacy compliance

• How seriously does the practice take patient privacy compliance?
• Is there staff training on privacy protocols including ongoing training on best practices?

Communication pathways

• Is there efficacy for driving change?
• Is there a clear hierarchy for conflict resolution?

Annual leave

• Does the practice have a buddy system in place for leave? This can help you integrate smoothly and provide a support network.

Exit strategy 

• If you leave the practice, how are medical records managed?
• Can you take records at no cost if patients choose to follow you?

Legal implications

Doctors typically engage with private practices as independent practitioners, rather than employees when joining a private practice.

“So, it’s important to consult your accountant and lawyer early to ensure your terms are clear and you have the right structures in place for tax and legal compliance,” advises Ben Ryan, Partner - Commercial & Corporate, Avant Law.

“As a non-owner consulting doctor starting in private practice, the practice will typically require you to sign a service agreement, which governs the relationship between you and the practice service entity.”

Service agreements should address:

• The practice entity’s obligations to provide various facilities and services to you. For example, their obligation to provide your patients with reception and billing services.
• The amount of the service fees you will pay to the practice entity.
• How you will collect patient funds – whether directly or indirectly from the practice entity, following a deduction of the applicable service fee. 
• Your obligations to the practice entity in relation to how you use their services and conduct yourself with other doctors at the practice.

Doctors should also watch out for clauses which state that you will be liable for patient claims against the practice or which prevent you from consulting elsewhere.

“It’s also important to obtain legal advice before signing any service agreement to ensure you are aware of your rights and responsibilities,” Ben adds.

Whether you decide to join a practice or start your own, this guidance and access to expert resources should help with your decision-making, giving you the flexibility to pivot and take advantage of new opportunities.

2025 Avant Growth Academy events

If you want to hear more insights from Steve and the Avant team, register now for one of our programs coming to Melbourne on August 9-10, 2025.

Transition to private practice

Designed for advanced trainees, recent fellows, and consultants making the leap to private practice, this course ensures a smooth transition into the entrepreneurial world of healthcare.

The future-ready private practice

Tailored for doctors and practice managers with established practices, this course is your gateway to elevating your medical business to new heights.

^*Please visit avant.org.au/growth-academy for more information.