Private practice
A private practice is a commercial operation which needs to cover its costs and generate a profit. Like other businesses, decisions have to be made about its location and the services which are provided.
Private practice offers a GP the opportunity to create a workplace and service which suits them and provides financial and professional rewards. It can also involve a range of business and management responsibilities. The GP in private practice can become an employer, property owner, business partner and business manager.
Choosing the structure, or practice model, you want to work in is an important consideration. It will influence how you work each day, the financial rewards, the commitments you take on, and the business relationships you will need to manage.
The traditional practice
The GPs are owner-operators with a long-term commitment to the practice and the community. The GPs carry the principal management responsibilities and in group practices would use partnerships or associate arrangements to disburse revenue and costs. Often the GPs own the practice premises and may have invested significant capital in equipment and other facilities.
Outsourced practice management
The practice owner contracts with a practice management company to provide business management services. These may include any of the following: GP recruitment, practice reception services, patient billing services, credit management, staff rostering, etc. The GPs as practice owners retain the overall business risk but are able to have more focus on medicine.
Serviced medical suites
The practice owner pays a facility charge for practice support services, rent on the surgery, reception services, utilities and practice nurse services may also be provided. The GP practice owner would remain the operating agent and be responsible for all other practice and business management responsibilities including clinical consumables. They don’t need to purchase a practice and can avoid staff employment responsibilities.
Fly-in/ fly-out
A visiting GP service may be the only option available in the remotest of communities. In general these arrangements require subsidisation by government.
The hospital with a co-located GP clinic
In some States the doctors are primarily remunerated through their hospital work but may have rights to private general practice to enhance earnings. In some settings GPs operate a private general practice on the hospital campus. The practice effectively leases rooms in the hospital but may utilise hospital facilities, such as treatment rooms.
The multipurpose centre with a co-located GP clinic
These centres can operate under a variety of management models including the GPs being employers of a range of healthcare staff. In rural health services they might include A&E services, aged care beds and some acute beds.
The GP super clinic
The GP super clinic will bring together general practitioners, nurses, visiting medical specialists, allied health professionals and other health care. There may be a range of contributors to the services provided through the GP super clinic including Commonwealth, State, Territory, or local government, private practitioners including through non government not-for-profit organisations, or private health insurance arrangements.

