Doctors Guide To Starting a Practice

Part 1: First Things First 

Starting your own practice is a milestone in your professional journey. For many doctors and health professionals, the advice is clear: "Start your own practice" or, at the very least, "buy into an existing one." This is often seen as the first step toward securing a solid financial future, and for many, we believe it can be your best investment.

But before you get started,  it's important to take a step back and think carefully about what you really want from your practice and how you plan to achieve those goals. 

While some practitioners go into private practice purely for financial reasons, and others for altruistic motives, most are trying to balance both: running a practice allows you to shape your career and lifestyle while still practicing medicine. There are so many questions to ask before you start; for example:

  • What will set your practice apart from others?
  • What kind of return on investment can you expect, and is it worth the effort?
  • Is private practice the right path for you?
  • How much time and commitment will your practice require, and can you achieve a work-life balance?
  • Should you consider purchasing an established practice or building one from the ground up?
  • What’s the ideal location for your practice?
  • Is it better to purchase or lease your office space and equipment?
  • Will you operate independently, or collaborate within a group practice?
  • What level of profitability can you anticipate?
  • What licenses, permits, and registrations will you need to obtain?
  • How wll you oversee and manage your staff?
  • Should you set up a practice entity or a service entity
  • What IT systems and solutions should you implement?
  • What start uop costs will you have?

Begin with the End in Mind

Spend time reflecting on why you want to start your practice and how you'll do it. Take the opportunity to work in different practices and learn from every experience. Talk to successful practitioners and find out what has worked for them. The more informed you are, the more prepared you'll be for the journey ahead.

The most profitable practices are often the ones that pay attention to the key factors like location, staff, equipment, and infrastructure. The market rewards high-quality care. The more time you spend planning and refining your approach, both before launching and as you continue to grow, the better the results will be.

Get Help Up Front

Running a practice is demanding, and the opportunity cost of a practitioner managing the setup can be high. It might be worth hiring an experienced practice manager and working with a specialist medical accountant and lawyer to help get things off the ground, especially since some big decisions (like the location and premises) need to be made by the practitioners themselves.

If you're joining another practice, it can make sense for one person to act as the "principal driver" for the group. This individual would have the authority to make decisions and manage expenses, while the group as a whole would still decide on major issues. 

Trust is Crucial When Joining a Group Practice  

In most cases, you'll be working with other practitioners, and the true solo practice is becoming increasingly rare. Make sure the relationships are solid and that everyone is on the same page before you commit .It’s essential that you trust your colleagues .While legal documents can provide some security, they can’t replace trust. Disputes in group practices are rare and often resolved outside of court, but a lack of trust can be a deal breaker. If you have doubts about your future partners, address them upfront or reconsider.

Registrations You'll Need

Before you can start practicing, there are a few key registrations you'll need:

  1. College Registration: You must be registered with your medical college before practicing independently. Contact your college for the eligibility and accreditation requirements.
  2. Health Practitioner Regulation Agency (AHPRA). This is the national board responsible for regulating health practitioners in Australia.  A doctor must hold current registration with the Medical Board of Australia, which is a part of AHPRA.
  3. Medicare Provider Number: You need a Medicare Provider Number for each practice location, and it must appear on all relevant documents like bills, referrals, and pathology requests. You can apply online.
  4. Prescriber Number: To prescribe medicines under the Pharmaceutical Benefits Scheme (PBS), you’ll need a prescriber number. This will be required on all prescriptions.
  5. Business Registration The GP will need to register their medical practice as a business entity with Australian Business Number (ABN)and, if applicable, Goods and Services Tax (GST) registration.  If the practice has employees, it will also need to register for Pay As You Go (PAYG) withholding. It's also important to decide on the structure of the business (sole trader, partnership, company, etc
  6. WorkCover Registration (if applicable): If the practice employs staff, the GP will need to register  for Workcover insurance, which covers employees for work-related injuries.
  7.   Health Practitioner Indemnity Insurance : GP practices are required to have professional         indemnity insurance. This is essential to protect both the practitioner and the patients in case of         clinical errors, claims, or other legal matters.

By addressing these basics early on, you’ll be able to focus on the more important aspects of running a successful practice. And as always, remember: preparation is key!  

Want to learn more?

Please click on the links below to view our 4 part series on "Doctors Guide To Starting a Practice"

Part 1: First Things First 
Part 2: To Buy or Not to Buy 

Part3: How to Buy a Practice
Part 4: Location and Premises 


Chris Tolevsky has extensive experience in the medical and allied health fields, with in-depth knowledge of both general and specialist practices.  He provides expert guidance on tax strategies, and building and protecting wealth focusing on individual practitioners and their practices. If you’re interested in discussing how we can help you grow your business or professional practice or optimize your financial strategy, please feel free to reach out for a complimentary consultation by clicking on the box to the right of the screen.

Disclaimer: This article contains general information only . It is not designed to be a substitute for professional advice and does not take into account your individual circumstances, so please check with us before implementing this strategy to make sure it is suitable