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Clinic Economics

How the Clinic Room-Rental Model Forces Patient Churn

When a GP pays a clinic by percentage or by room, the clinic's costs must be covered before the GP earns. This page sets out how that works, with sources, and what it implies.

Contractor GPs typically pay a service fee for rooms, reception, nursing and systems, which Cubiko and William Buck describe as a percentage of billings, often around 35 percent, and some practices charge flat room rates (for example). The RACGP reports an average of 19.7 minutes per patient. How fee structures influence consultation length varies by practice, and this page describes the incentive, not a rule.

How the fees work

A service fee is the amount a practitioner pays the practice for rooms, equipment, staff and administration, most commonly a percentage of billings. Some providers charge flat daily or sessional rates, as in Doctors Rooms and Wellshare listings.

The incentive

When costs are fixed or proportional to billings, higher volume spreads the clinic's costs across more patients. William Buck notes that a practice must fund staff, rent, IT, accreditation, insurance and compliance regardless of billing model.

What the data show on time

The RACGP's 2025 report, as summarised by ABC News, found an average of 19.7 minutes per patient nationally. Many clinics book shorter slots, as discussed in six-minute medicine and how many patients a GP can see properly.

Continuity and patient movement

Patient churn depends on many factors. We do not have a source quantifying churn caused by room rental, so we describe the incentive only. The RACGP's mixed-billing guide discusses how practices make billing decisions under cost pressure.

The alternative on C.A.L.L.S

A flat monthly membership with no commission and 30-minute visits (pricing, how it works). See the cost comparison.

Join C.A.L.L.S

Escape the volume pressure.

Join C.A.L.L.S and run your own GP home visit practice.

Join C.A.L.L.S and run your own GP home visit practice

Frequently asked questions

What is a service fee?

The amount a practitioner pays a practice for rooms, equipment, staff and administration (William Buck).

How long is an average GP consult?

19.7 minutes nationally per the RACGP (ABC News).

Does room rental cause short consultations?

The incentive exists, but we have no source quantifying the effect.

What does C.A.L.L.S charge?

A flat monthly membership and no commission (pricing).

Sources

Keep reading

Six-Minute Medicine →What Clinic Owners Charge GPs →Why Most GPs Already Run Their Own Business →