What is A Facility Services Agreement and Why It’s Important for Your Practice


Facility Services Agreements

The medical industry in Australia frequently uses Facility Services Agreements.  The Facility Service Agreement clearly outlines the provision of facilities and administration services provided to a practitioner.


When a Facility Services Agreement is in place, it is not as simple as taking money in as revenue in the Profit & Loss as the exchange of services must be calculated first – a percentage (as agreed in the FSA) of the practitioner’s income is the recorded revenue.

This requires a systematic bookkeeping process to record the patient fees coming into the Practice correctly and accounting for it as revenue only once the facility services have been invoiced to the practitioner for patient fees invoiced or received.

The income for the practitioners under an FSA should then be held in trust in a separate bank account until the facility services have been invoiced. Using the Profit First system this can be calculated and transferred to the bank accounts regularly ready for the practitioners to receive their portion of the income as per the terms in the agreement.