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Running a medical practice in 2025 may seem similar to starting any other business, such as ensuring you meet the necessary licensing, registration, business structure and liability requirements. However, the healthcare sector comes with additional, tailored considerations that distinguish it from other industries.
For instance, a medical practice in 2025 means you’ll need to address not only the standard business obligations but also stricter privacy obligations and policies – especially with ongoing innovations in digital health and telehealth services.
Once you’ve sorted everything out, you can establish a stable and compliant business that provides a much-needed service to your community. For more detailed guidance on setting up your legals, you might also want to check our Business Set-Up Ideas and Plans guide.
If you have been thinking about starting your own medical practice, let’s take a look at some of the legal considerations you will need to address to thrive in today’s landscape.
How To Run A Medical Practice
There’s a lot that goes into running a medical practice. For starters, you need properly trained and qualified staff in multiple areas, a range of essential equipment – often including advanced Electronic Health Record (EHR) systems – and a fully functioning management system that can handle patient intake, appointments and efficient planning for emergencies or unexpected circumstances. Digital transformation in healthcare has further raised the bar for operational efficiency and regulatory compliance.
In addition to the logistic and operational demands, a high standard of clinical practice, patient care and data security is required for all medical clinics. Staying compliant with evolving standards and technology is critical in 2025.
You also need to consider the basic obligations of an employer, such as adherence to Work Health and Safety laws as well as ensuring fair workplace practices. Our employment law resources can help you navigate these obligations.
Best Legal Structure For A Medical Practice
There is no one legal structure that works for every medical practice. No two practices are exactly alike, and neither will their business structure be identical. In 2025, whether you plan to expand regionally or remain a boutique service provider, the structure you choose should reflect your future goals, risk appetite, resource allocation and level of investment.
Common legal structures to consider include:
- Sole trader
- Partnership
- Company
- Trust
An operating as a sole trader or partnership structure is straightforward and cost-effective to set up. This may be the best option if you wish to keep your practice small and local. However, it comes with unlimited liability, meaning your personal assets could be at risk if the business encounters financial difficulties.
If you prefer not to risk your personal assets, opting for a company structure can provide limited liability protection. While this option is usually more expensive and complex to set up, it may be the better choice for larger practices or those with higher operational risks. For a detailed comparison, our article on Sole Trader vs Company offers valuable insights.
Register Your Medical Practice
Like any standard business, you will need to register your medical practice. This includes registering the business name, applying for the appropriate taxes and obtaining an Australian Business Number (ABN). In 2025, it’s also wise to consult our updated guide on legal requirements for starting a business.
If you register as a company, you will additionally need an Australian Company Number (ACN). We recommend reviewing our Company Set-Up services to ensure you meet all current regulatory standards.
What Licences Do I Need For My Medical Practice?
All medical practitioners must be registered with the Medical Board of Australia and be enrolled in Medicare. In 2025, additional practice accreditation – such as that provided by the Royal Australian College of General Practitioners or the Royal Australasian College of Physicians – is crucial. Moreover, all clinical and administrative staff need to be properly trained and accredited for their respective roles.
The process of getting your medical practice licensed will vary depending on your state and local zoning regulations. For example, in NSW, there is a specific pathway for obtaining a licence for a private health practice. Always verify the requirements for your local area and follow the process accordingly.
What Documents You Need For Your Medical Practice
Like any business, a medical practice requires a range of legal documents to hold it together, limit liability, and clarify key responsibilities. For additional insights, our guide on Legal Documents for Business is a great resource.
We’ve listed a few common documents below:
Employment Contracts
To run a medical centre, you will likely be hiring a range of staff including medical practitioners, receptionists, nurses, IT personnel and cleaning staff. It is essential to have an Employment Contract in place for each employee. These contracts outline duties, rights, obligations, pay, leave entitlements and conditions for termination.
If your employees are covered under specific awards, ensure that your Employment Contracts reflect your obligations in line with modern award compliance. All agreements should be in writing to facilitate smooth dispute resolution through documents such as a Deed of Settlement if needed.
Supply Agreements
Medical practices require a steady supply of equipment and materials. Establishing a formal Supply Agreement with your suppliers is important to set clear expectations regarding:
- The specific materials to be provided
- Delivery dates and times
- Payment terms and methods
- Termination clauses and warranties
- Liability provisions
If you work with overseas suppliers, ensure your Supply Agreement is internationally enforceable to protect your practice’s interests.
Limitation Of Liability
Given the significant legal responsibilities towards patients, it is wise to include a limitation of liability clause within your agreements. Such clauses can help restrict the amount or types of damages your practice may be liable for, ensuring your business remains protected in the event of unforeseen incidents.
Health Service Provider Terms And Conditions
Every service-based business should have clearly defined terms and conditions. For health service providers, these terms are customised to reflect patient care standards, outline service expectations, and include provisions that help limit liability. Tailoring your website Terms and Conditions can also be beneficial, particularly if you offer online bookings.
Professional Service Agreement
A Professional Service Agreement outlines what patients can expect from your practice. It details the scope of services, liabilities, warranties and waivers, ensuring that both parties clearly understand their rights and obligations. This agreement is especially important in healthcare where the standard of service is exceptionally high.
Health Service Provider Privacy Policy
If your practice maintains an online presence – whether for booking, telehealth, or patient information – you must have a comprehensive Privacy Policy. The Privacy Act 1988 requires any business that collects personal or health information to implement strict privacy measures, regardless of turnover. For more detailed guidance, read our Privacy Policy: What You Need To Know article.
I’m Running A Telehealth Business – What Do I Need To Know?
A telehealth business allows you to remotely provide medical services via phone or video call. However, because not all clinical services can be safely administered online, telehealth is restricted to specific circumstances. In 2025, with the continued evolution of digital health, staying compliant with additional guidelines from regulatory bodies is essential.
For your telehealth operations, ensure your website has a robust privacy framework, secure data storage protocols, and a comprehensive Data Breach Response Plan. These steps protect your patients’ information and help safeguard your practice against potential security breaches.
Do I Need A Telehealth Service Agreement?
It’s highly recommended to have a dedicated Telehealth Service Agreement if you are running a telehealth business. This agreement clearly outlines the scope of services, payment terms, cybersecurity measures and the inherent risks associated with remote care. It also includes the patient’s rights regarding the collection and use of their health information.
Running An Online Pharmacy
Along with offering health services online, running an online pharmacy is an option in 2025. However, online pharmacies are subject to a broad range of rules and regulations governed by the Therapeutic Goods Act 1989 and other state-specific requirements. It’s vital to understand your licensing, registration, and operational restrictions before launching your online pharmacy.
Since an online pharmacy operates as a digital business, you must also implement robust Website Terms and Conditions, establish a clear Privacy Policy and adopt stringent cyber security measures. For more detailed advice on digital business compliance, please refer to our eCommerce Business Guide.
What Are My Obligations Around Medical Records?
You have a legal obligation to store all medical records safely and securely. According to the My Health Records Rule 2016 – which continues to underpin best practices in 2025 – you must take proactive and reasonable measures to keep patient records private. Failure to do so can compromise your practice’s integrity and potentially lead to legal repercussions.
If you are utilising an Electronic Health Record (EHR) system, it is essential to document and monitor all associated processes. Regular audits and consulting IT security experts can further help ensure compliance. Our team is available to provide advice on how to manage and secure your digital records.
Who Can Own A Medical Practice In Australia?
A medical practice must primarily be controlled and managed by a licensed medical professional. In 2025, while there are instances where non-medical professionals may invest in a practice, strict regulations ensure that clinical control remains with qualified practitioners. Always verify local laws and consult legal experts if you’re considering alternative ownership structures.
How To Buy A Medical Practice
Purchasing a medical practice is similar to buying any other business, but with additional factors to consider due to the specialised nature of healthcare. In 2025, due diligence has expanded to include an assessment of digital infrastructure, compliance with modern health data regulations, and the overall quality of patient care systems.
There are two primary methods to buy a business:
- Share sale
- Asset sale
A share sale allows the purchaser to acquire a majority of the company’s shares, while an asset sale involves purchasing specific tangible and intangible assets. Always ensure you conduct thorough due diligence on assets such as the building, intellectual property, trade secrets, client databases, employee agreements and equipment.
Can I Buy A Franchise?
Yes, it is possible to buy a medical practice as a franchise. As a franchisee, you buy into a proven business model with established support from the franchisor. However, your operation will be subject to the franchisor’s requirements, your Franchise Agreement and the Franchising Code of Conduct. For more guidance, our franchising experts are here to help you ensure all legal obligations are met.
Protect Your Medical Practice’s IP
Finally, as your practice grows, protecting your intellectual property (IP) becomes increasingly important. In 2025, safeguarding your intangible assets such as logos, slogans and proprietary systems is crucial to maintaining a competitive edge.
You can register your logo as a trade mark to legally secure your brand identity and even consider licensing your designs via an IP Licence Agreement. If you’re unsure about the process, speak to one of our IP lawyers for expert advice.
It’s always wise to review your existing agreements and take proactive steps to update your IP protection in line with current industry standards, especially as digital marketing and telehealth services continue to expand.
Key Takeaways
Running a medical practice is no walk in the park – but with the right legal support, it can be a manageable and rewarding endeavour. Here’s a quick recap:
- A medical practice requires a robust business structure – whether as a company, sole trader, partnership or trust.
- You must register your practice and secure an ABN and/or ACN.
- Compliance with state and local licensing regulations is essential.
- All staff must be appropriately qualified and accredited.
- Ensure your legal documentation – including Employment Contracts and Supply Agreements – is in place.
- Adhere to your privacy obligations, such as keeping medical records secure.
- For telehealth businesses or online pharmacies, follow the latest online business laws and cybersecurity practices.
- Acquisition of a practice can be achieved via share sale or asset sale, or through franchising.
- Don’t forget to protect your practice’s intellectual property with proper registration and agreements.
If you would like a consultation on running a medical practice or need assistance with any legal aspects, you can reach us at 1800 730 617 or drop an email at team@sprintlaw.com.au for a free, no-obligations chat.
Remember, the legal landscape for medical practices is continually evolving. In 2025, staying up to date with changes in healthcare regulations, digital compliance and privacy laws is more important than ever. Regularly review your contracts and operational policies and consider subscribing to our legal update service for ongoing guidance. Our expert team is always ready to help ensure your practice remains compliant and competitive in this dynamic environment.
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