Occupancy Licences For Shared Allied Health Rooms

Letting practitioners use spare consulting rooms can be a smart way to grow your clinic without hiring more staff or signing a bigger lease. You might have a psychologist in on Mondays, a dietitian on Wednesdays and a physiotherapist using Room 2 whenever it's free.

The tricky part is making sure the arrangement is actually what you think it is. A casual room hire setup can start looking like a lease if the practitioner has too much control over the room, or like an employment arrangement if you direct how they work.

The good news is that this doesn't have to be complicated. A clear licence to occupy can give you flexibility, protect your clinic and help each practitioner understand where their responsibilities begin and end.

What Is An Occupancy Licence For A Shared Clinic?

An occupancy licence is a permission to use space, not a transfer of legal possession of the space. In a shared clinic, it usually lets an independent practitioner use a consulting room, reception area and shared facilities at agreed times.

You might also hear it called a shared consulting room agreement, clinic room hire agreement, property licence agreement, allied health room rental contract or occupancy licence agreement. The name is less important than what the document actually says and how the arrangement works day to day.

A well drafted occupancy licence for a shared allied health room will usually cover:

• which rooms and facilities the practitioner can use
• the days, hours or booking system that applies
• fees, invoices, late payments and GST treatment
• reception, admin and software licence access, if provided
• patient privacy, records and confidentiality
• insurance, professional registration and compliance
• cleaning, equipment use and infection control
• how either party can end the arrangement

For example, say Mia runs an allied health clinic in Melbourne with four consulting rooms. She lets a podiatrist use Room 3 every Tuesday and Thursday, and an occupational therapist book casual sessions through the clinic's booking calendar. Mia doesn't want to give either practitioner a permanent room or take on employment obligations. An occupancy licence can be a good fit, as long as the documents and the working relationship match that intention.

Is A Shared Clinic Room Agreement A Lease Or A Licence?

It depends on the level of control you give the practitioner, especially whether they have exclusive possession of the room. If they can treat the room as their own space for a fixed period, exclude others and control access, the arrangement may look more like a lease than a licence.

This matters because leases carry different rights and obligations. In some states and territories, a clinic premises arrangement may also be affected by retail or commercial leasing laws, depending on the premises, the permitted use and how the arrangement is structured.

For example, state and territory retail leasing legislation can impose rules around disclosure, minimum standards, outgoings, rent reviews and dispute processes. The details differ across Australia, so you should check the rules that apply in your state before you give someone ongoing, exclusive use of a room.

A licence is more likely to stay a licence if:

• the practitioner uses the room only at agreed times or through a booking system
• you can move them to a similar room if needed
• the room remains part of your clinic, not their separate premises
• they don't install permanent signage or fitout without your consent
• you keep reasonable access rights for cleaning, maintenance and clinic operations
• the agreement says there's no lease, tenancy or exclusive possession

A written label won't save the arrangement if the practical reality says something different. If the practitioner has their own locked room, stores their equipment there permanently, decides who can enter and operates from it as a standalone business, you may need a lease or sublease rather than a licence.

How Do You Keep A Practitioner Independent And Not An Employee?

You keep a practitioner independent by structuring the relationship so they run their own practice, control how they deliver services and take responsibility for their own professional obligations. If you manage them like staff, the arrangement can create employment law risk.

The Fair Work Act 2009 looks at the real substance of the relationship. Recent contractor law changes have put more focus on how the relationship actually operates, not just what the contract says. If you call someone a licensee or contractor but require them to work set shifts, follow your detailed treatment protocols, wear your uniform and take direction like an employee, you may have a problem.

To support genuine independence, your agreement and day-to-day practices should usually make clear that the practitioner:

• sets their own clinical approach within their professional obligations
• sets or agrees their own appointment availability
• holds their own ABN, and ACN if they operate through a company
• invoices patients or the clinic as agreed
• maintains their own professional registration, if required
• carries their own professional indemnity and public liability insurance
• is responsible for their own tax, superannuation and business expenses, subject to any specific legal obligations that may apply
• can work for other clinics, unless a reasonable restraint or conflict rule applies

You can still set rules that protect your clinic. For example, you can require safe conduct, respectful dealings with reception staff, privacy compliance, no unlawful advertising, use of booking systems, and cleaning obligations after appointments.

The balance is to set clinic standards without controlling the practitioner like an employee. If you need the person to work under your brand, follow your clinical model and be rostered like part of your team, an employment or contractor services agreement may be more appropriate than a room licence.

What Should A Clinic Room Hire Agreement Include?

A clinic room hire agreement should include the practical details that prevent everyday confusion. The more shared the space is, the more useful the detail becomes.

Room Access And Bookings

Your agreement should explain when and how the practitioner can use the room. For example:

• fixed days, such as every Tuesday from 8am to 5pm
• session blocks, such as mornings, afternoons or evenings
• casual bookings through a shared calendar
• minimum booking times or notice periods for cancellations
• what happens if a room becomes unavailable because of repairs or an emergency

If you want flexibility, avoid promising a specific room unless you genuinely mean it. You could say the practitioner can use a consulting room that's reasonably suitable for their services, subject to availability.

Fees, Invoices And Late Payments

Set out exactly how the practitioner pays. Common options include:

• a fixed daily or session fee
• an hourly room hire fee
• a percentage of patient fees
• a monthly licence fee for agreed access
• separate charges for reception, software, consumables or storage

You should also cover when invoices are issued, when payment is due, whether GST is included or added, and what happens if payment is late. Without a written agreement, you may struggle to recover unpaid invoices or stop access quickly when someone falls behind.

Reception, Admin And Patient Communications

Shared health spaces often blur the line between room hire and business support. If your reception team answers calls, books patients or processes payments for the practitioner, write down exactly what is included.

For example, your agreement can cover:

• whether reception can access the practitioner's calendar
• who confirms appointments and sends reminders
• whether reception can take payments or issue receipts
• what scripts or information reception staff can use
• whether admin support is included in the licence fee or charged separately

This is also where privacy and patient consent become very important. Reception staff should only access health information they're authorised to access and need for their role.

Who Owns The Patient Records In A Shared Allied Health Space?

It depends on who provides the health service and how your clinic is presented to patients. You need to be very clear about whether patients are patients of your clinic, the independent practitioner, or both in different ways.

Health information is sensitive information under the Privacy Act 1988 and the Australian Privacy Principles. Many clinics also need to consider state and territory health records laws, such as rules that apply in Victoria, New South Wales and the ACT. If registered health practitioners are involved, professional standards and codes may also apply through the Australian Health Practitioner Regulation Agency and the National Boards.

Your agreement should deal with patient records in a practical way, including:

• who creates and controls the patient file
• where records are stored, such as practice management software, a health platform or the practitioner's own system
• who can access records and for what purpose
• how patient consent is obtained for information sharing
• what happens to records when the practitioner leaves
• how data breaches, complaints and access requests are handled

If the practitioner uses your practice management software, don't assume that means your clinic owns all patient records. You may be hosting or facilitating access to records for an independent practitioner. The agreement should match your privacy policy, patient intake forms and the way appointments are booked.

If your clinic collects health information, the Notifiable Data Breaches scheme may require notification to affected individuals and the Office of the Australian Information Commissioner if an eligible data breach occurs. That can include unauthorised access to patient files, lost devices or sending health information to the wrong recipient.

A simple practical step is to decide this before the practitioner starts seeing patients. Trying to untangle patient ownership, software access and privacy obligations after the relationship ends is much harder.

What Insurance And Compliance Do You Need For Shared Rooms?

You usually need both clinic-level insurance and practitioner-level insurance. Your policy may not cover the practitioner just because they're working from your rooms.

At a clinic level, you may need to check:

• public liability insurance for the premises
• business interruption cover, if relevant
• property and equipment cover
• cyber insurance, especially if you hold health information digitally
• workers compensation insurance for your employees
• whether your landlord's insurance or lease imposes specific requirements

For each practitioner, your agreement should require current evidence of:

• professional indemnity insurance suitable for their services
• public liability insurance, where appropriate
• AHPRA registration, if they're in a registered profession
• membership or accreditation required for their discipline, if relevant
• Working with Children Check or NDIS worker screening, if needed for their work

You should also check your head lease before letting anyone else use the premises. Many commercial leases restrict sublicensing, sharing occupation or allowing another business to operate from the site without landlord consent. If you ignore this, you may breach your lease even if the practitioner arrangement is working well.

Work health and safety laws also matter. As the clinic operator, you need to manage risks in the workplace, including safe access, infection control, emergency procedures, equipment safety and hazards in shared areas. The practitioner should also be required to follow your reasonable WHS policies while using the premises.

Can You Provide Reception Services Without Creating Extra Risk?

Yes, you can provide reception services, but you need to define the service carefully. Reception support can be a great value-add, but it can also create confusion about privacy, branding and responsibility for patient care.

If reception staff answer the phone using your clinic name, patients may assume the practitioner is part of your clinic. That might be fine if that's your commercial model, but it should be deliberate.

Your agreement should say whether the practitioner can:

• use your clinic name, logo or website profile
• use their own business name when seeing patients at your clinic
• receive patient enquiries through your phone number or email
• advertise your clinic address as their practice location
• access your Medicare, private health or payment systems, if relevant

You should also set rules around advertising and clinical claims. Allied health advertising can be regulated by the Australian Consumer Law, AHPRA advertising guidelines for registered practitioners, and other professional standards. For example, testimonials, before and after claims, health benefit claims and special offers may need careful handling.

If your clinic provides admin support, make sure staff are trained on confidentiality and know which records they can access. A receptionist trying to be helpful can accidentally create a privacy issue by sharing appointment details with the wrong person or accessing notes they don't need.

How Do You End An Occupancy Licence For A Shared Clinic?

You end an occupancy licence by following the termination process in the agreement. If the agreement is silent, ending the arrangement can become messy, especially if the practitioner has future patient bookings or outstanding invoices.

Your licence should include clear rights to end the arrangement:

• on notice, such as either party giving a set period of written notice
• immediately for serious issues, such as unsafe conduct, loss of registration, non-payment or privacy breaches
• if your head lease ends or the landlord withdraws consent
• if the practitioner doesn't maintain insurance
• if the room becomes unavailable for reasons outside your control

You should also plan the handover. The agreement can cover:

• final invoices and payment deadlines
• removal of equipment and personal items
• cancelling software access, data access, keys and alarm codes
• notifying patients about the practitioner's departure
• continued confidentiality obligations
• record retention and transfer arrangements

Be careful with patient communications when someone leaves. If the patients belong to the independent practitioner, you may not be able to simply keep marketing to them as your clinic patients. If they belong to your clinic, the practitioner may not be able to take the full patient list. The right answer depends on your intake process, privacy consents, branding and agreement.

Common Mistakes To Avoid

The biggest mistake is relying on a short template that treats every shared room arrangement the same. Templates often miss the details that matter in health settings, especially patient records, reception services and practitioner independence.

Other common issues include:

• Giving exclusive possession by accident: If the practitioner has their own locked room and permanent control over access, the arrangement may look like a lease.
• Ignoring your head lease: Your landlord may need to consent before you share the premises with another practitioner or business.
• Mixing up employment and room hire: If you roster, direct and manage the practitioner like staff, you may create employment risk.
• Forgetting privacy consents: Health information needs careful handling, especially where your reception team and software are involved.
• No insurance checks: Ask for certificates of currency before the practitioner starts, then diarise renewals.
• Unclear branding: Decide whether the practitioner is presented as part of your clinic or as an independent business using your rooms.

A tailored agreement is usually much easier to deal with than a dispute later. It also gives practitioners confidence that the setup is organised, fair and professional from day one.

Key Takeaways

• An occupancy licence gives permission to use shared clinic space, but it shouldn't give the practitioner exclusive possession like a lease.
• Your agreement should clearly cover room access, bookings, fees, reception support, records, privacy, insurance and termination.
• Practitioner independence matters. If you manage someone like an employee, the label in the agreement may not protect you.
• Health information needs extra care under the Privacy Act 1988, the Australian Privacy Principles and relevant health records laws.
• Check your head lease and landlord consent before letting another practitioner operate from your premises.
• Shared allied health rooms work best when the legal documents match the practical way your clinic runs.

If you'd like help with your clinic room licence agreements, practitioner independence settings, patient records and privacy terms, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.