THE Rural Doctors Association of Australia looks set to be granted powers to negotiate contracts with hospitals and health facilities on behalf of rural doctors.

The move would improve the pay and working arrangements of doctors who work in rural and remote communities.

Provisional approval has been given to extend the RDAA's authorisation to visiting medical officers (VMOs) employed by hospital and health services, who currently aren't covered by a state-wide agreement.

It would allow RDAA to negotiate terms and conditions for GPs, locums and other rural doctors who work as VMOs in public health facilities.

It also applies to doctors who provide primary health care services, including after-hours services.

Collective negotiation can deliver cost savings and offer doctors more control over their contract terms.

Importantly, it is expected to help attract and retain doctors who provide essential medical services in the bush.

RDAA chief executive, Peta Rutherford, said it would make life easier for its members by limiting their dealings with government bureaucracy.

"We've had this approval for a while but this would extend our authorisation to allow us to negotiate for VMOs,” Ms Rutherford said.

"Fair remuneration packages and support for professional development are the things we'd be looking it.”

Ms Rutherford said the health system must keep pace with changing demands if it's to hold on to skilled professionals in the bush.

"We're seeing a big change in the way doctors work,” she said.

"It's very rare that a young doctor will settle in a country community like we've seen in previous generations.

"Realistically, if we can keep them in a rural town for five to seven years that's a good result.

"Most of them will leave eventually so we have to plan ahead and always be looking to recruit the next doctor into these communities.

"We also have to ensure there are employment opportunities for their partners and access to education for their kids.”

Under the proposed changes, the advocacy body could take a front seat in negotiations without fear of legal action for conduct that might otherwise raise concerns under the competition provisions of Commonwealth law.

Special permission is granted by the Australian competition watchdog on the basis that the public benefit from the conduct outweighs any public detriment.