Your Guide to Understanding Supervision Agreements for Medical and Allied Health Independent Contractors

When new allied health professionals, international medical graduates (IMGs), or registrar doctors join the healthcare profession, they bring fresh knowledge, enthusiasm, and a commitment to patient care. However, transitioning to private practice can be challenging, requiring guidance and oversight to ensure safe and effective delivery.

If a practitioner in your healthcare practice is engaged as an independent practitioner and required supervision services, it is important to consider implementing a supervision agreement alongside their existing services agreement.  This is especially so if the practitioners providing the services are also independent.

In this article, we’ll explore

  • Why supervision agreements are important;

  • Who needs them;

  • Key components of the agreement;

  • Practical steps for implementation; and

  • Why engaging an expert is critical for this important document.

 Why are Supervision Agreements important?

Supervision agreements establish clear roles, responsibilities, and expectations between the supervisor, supervisee and the practice. These agreements aren’t just a formality, they provide:

Clarity and accountability: Supervision agreements ensure all parties understand their duties and obligations, reducing potential disputes.

Regulatory compliance: Regulatory bodies mandate formal supervision arrangements for certain professionals, particularly IMGs and registrar doctors. Having a written agreement formalises the relationship and helps ensure your practice is compliant with industry standards.

Professional reputation and patient safety: Structured supervision promotes high standards of care - safeguarding your practice’s reputation and demonstrating a commitment to patient safety.

Risk minimisation: By clearly defining the scope and terms of supervision, these agreements help reduce the likelihood of employment disputes, which can often escalate into legal disputes and heavy costs.

Who Needs a Supervision Agreement?

Supervision agreements are particularly relevant if your practice deals with:

  1. New Allied Health Professionals: This could include university students completing clinical placements, new graduates transitioning into practice and post-graduate students undertaking specialised training.

  2. International Medical Graduates (IMGs): All IMGs with limited or provisional registration must be supervised, as mandated by the Medical Board of Australia.  Many practices choose to engage IMGs as independent practitioners making the formalisation of the arrangement with a Supervision Agreement critical for compliance purposes.

  3. Registrar Doctors: Registrar doctors require supervision to meet their training and accreditation requirements, once they come out of a hospital setting and become independent practitioners a Supervision Agreements can assist both the practice and practitioner with providing a framework to meet these obligations effectively.

What Should a Supervision Agreement Include?

A well-drafted supervision agreement is essential to ensure a structured, compliant, and effective supervision arrangement that supports both the supervisee’s development and the safety of patients. While the specifics may vary depending on the context, all supervision agreements should include the following essential terms:

  1. Details of parties: The agreement should clearly identify the supervisor, supervisee (e.g., student, registrar, IMG), and the practice.

  2. Scope of Supervision: Define the areas of clinical practice or tasks for which supervision is required.

  3. Roles and Responsibilities: Outline the duties of the supervisor (e.g., providing feedback, overseeing work, reporting) and the supervisee. The agreement should also specify the practice’s administrative role in facilitating the supervision, if applicable.

  4. Duration of Agreement: State the start and end dates of the supervision arrangement (this will usually be short-term), as well provisions for termination and renewal.

  5. Payment Terms: Detail how the supervisor will be paid for the supervision and whether the practice will receive any fees for facilitating the supervision.

  6. Legal and Regulatory Requirements: Ensure compliance with relevant privacy, confidentiality and employment laws, as well as any supervision-specific guidelines set by your relevant professional board.

Practical Steps for Implementing a Supervision Agreement

Creating and implementing supervision agreement and plan may seem daunting but breaking it down into manageable steps can help simplify the process. Let’s explore how you can implement an effective supervision agreement – one step at a time.

Step 1: Assess Requirements: Begin by determining whether a supervision agreement is necessary based on the role and regulatory requirements of the supervisee. Consider industry-specific requirements and professional standards to ensure compliance.

Step 2: Draft a Custom Agreement: Create a tailored supervision agreement which aligns with your practice’s needs and the roles of the parties involved. Remember generic templates rarely address your practice’s unique risks and often overlook key issues.

Step 3: Legal and Ethical Review: Consult with legal professionals specialising in healthcare to ensure your agreement aligns with legal regulations and ethical guidelines.  Or even better get them to help you with step 2 and cut out this step completely.

Step 4: Engage the Parties: Ensure both the supervisor and supervisee have an opportunity to review, discuss and have buy-in on the agreement. This fosters clarity, prevents misunderstanding and strengthens their commitment to the process. 

Step 5: Review and Update Regularly: Conduct periodic reviews of the agreement to ensure it remains relevant, particularly if the supervisee’s role evolves or regulatory requirements change.

Step 6: Educate and Train: Equip the supervisors with the skills and tools they need to effectively mentor and guide the supervisee.

How Can You Legal Help?

At You Legal, we believe that supervision agreements are more than just a nice to have - they are essential for ensuring compliance, fostering professional development, and safeguarding patient care.

Our experienced team has assisted numerous practices create tailored supervision agreements that align with legal and regulatory standards while meeting the unique needs of their practice.

If you’re ready to implement a supervision agreement or need advice tailored to your practice’s needs, contact our team here, and we will put you in touch with the best professional for your needs.

Sarah Bartholomeusz