Terrence Williams, 38, a British national who lives in Launceston, was arrested on Wednesday over the alleged crime and also faces one charge of indecent assault.

Police allege the assault occurred in the medical examination of a 30-year-old woman on Tuesday.

Mr Williams is alleged to have touched the woman's breasts and inserted his finger in her anus in the course of the appointment.

Detective Senior Sergeant Joe Riley, of Launceston CIB, would not elaborate on the details of the alleged offence.

Mr Williams was stood down from practice when the complaint was made.

"He was suspended, pending the result of a medical board hearing," Detective Senior Sergeant Riley said.

"It's not suggested that he is the owner or proprietor of the business."

Mr Williams pleaded not guilty to both offences before magistrate Robert Pearce in a Launceston court yesterday.

"He has been remanded in custody pending the result of a bail application next week," Detective Senior Sergeant Riley said.

Mr Williams will reappear in the Launceston Magistrates Court on November 25.