This HAS To Stop...
Gerda Muller
Allied Health Private Practice Business Consultant. I help you build a Self-Running Practice, giving your more time and financial freedom, as you help more people in better and more effective ways.
I AM SICK OF OTHER CLINICIANS & OTHER PRACTICE OWNERS SHAMING PRACTICE OWNERS WHOM PAY THEIR SUBCONTRACTORS ‘ONLY’ 50%.
Yip, you’re basically making a fool of yourself for commenting on something you know nothing about.
Sick of it!
Sick of it!
Sick of it!
This condescending, ill-informed, high-horsery has to stop.
The insinuation - and at times open accusation - that this in essences makes us bad people and unscrupulous business owners, who don’t care for their staff and team, is just ludicrous and smacks of total ignorance around running a business.
I do get it to a big extent when it is done by clinicians whom have never actually run a private practice and or any other business for that matter….
But when it actually comes from other practice OWNERS….!!!
Well, that just tips me over the f&%$@g edge!
So here we are…
Allow me to share with you a few more ‘ONLIES’ when it comes to these ‘brazen’ practice owners whom ONLY pay their subcontractors 50%...
1. They are the ONLY practice owners who know that it is not really about the %, but more about the dollar amount that their subcontractors are being paid. Because 50% at a practice that charges $180 per hour (i.e. $90 goes to the subcontractor) is way more than even 100% at a practice which bulk-bills at $84 dollars per hour – that being just one example.
2. They are the ONLY ones that get that we – as the practice owner – are not TAKING from the subcontractor. Let that sink in for a second…. We are NOT taking a cut of the subcontractor’s money, we are GIVING the subcontractor a cut of OUR money.
The money goes into the business bank account and we pay the subcontractor an agreed upon rate from OUR money. So stop acting like we are TAKING FROM them. We are PROVIDING them with an income, with a business, with experience – get this right people!
3. They are the ONLY ones that know that subcontractor costs are considered ‘cost of goods’ and hence the 50% that remains after we have paid the subcontractor their 50%, now has to cover 100% of our costs.
Business expenses aren’t cheap people and the cost of these things go UP every year!!! God forbid we actually tell the subcontractor we are going to pay them less because our expenses have increased!
And in case you were wondering (and who am I to let an opportunity go by and NOT educate you on this topic) below is a NON-exhaustive list of just some of the Expenses incurred by a group private practice...
- Accounting Fees
- ASIC Fees
- Bank Fees
- Cleaning Expenses
- Computer & Equipment Servicing
- Building and Contents Insurance
- Legal Fees
- Office Equipment (printers, etc)
- Printing & Stationery
- Publications & Resources
- Subscriptions (Software)
- Staff Amenities (tea, coffee, milk, etc)
- Internet, Phones
- Repairs & Maintenance
- Training (Professional & Staff)
- Wages
- Super
- Leave
- Leave Loading
- Work Cover
- Recruitment Costs
- Website Hosting, Updates & Maintenance
- Networking
- Facebook & Social Media Adverts
- Brochures/Business Cards/Flyers
- Client Booking Subscriptions
- Accounting Subscriptions
- HICAPS Fees
- Eftpos Fees
- Rent
- Land Tax
- Electricity
- Tax
But let us continue….
4. They are also the ONLY ones whom won’t be old and grey and still seeing clients 4 days a week, to pay the practice bills and pay their subcontractors whom is most probably even earning more than they are! I know you don’t believe me when I say this…. But I have spoken to a truckload of seemingly successful practice owners whom tell me that their subcontractors earn almost double what they earn!!! Not on my watch! Sorry, not sorry!
5. They are also the ONLY one’s whom will be building a SUSTAINABLE business that will be around to achieve long-term positively impact on the mental health of the community.
Money is a resource that can do a lot of good in this world by reinvesting it back in expanding the practice and hence helping more people in better ways.
Now, I’m probably sounding a bit cranking in this blog, but that is because I am.
Nothing annoys me as much as someone commenting on something they know nothing about and take it from me….
Until you have built and run a GROUP private practice and YOU have experienced the challenges that go with it, please shut your mouth and stop making an idiot of yourself.
Or as the fabulous Brene Brown have said – way more eloquently than I could ever…..
“If you aren’t in the arena also getting your ass kicked, I’m not interested in your feedback.”
Yes - as in any industry - there WILL be those bad apples trying to exploit their team, but that is NOT the general rule and the amount paid is most certainly not the only variable to consider here.
For me being a good business owner includes being FISCALLY RESPONSIBLE, as I need to ensure a sustainable business for myself, my team and very importantly my clients - so stop judging us for being good business owners.
I realise being a business owner (which you are when you run a group private practice) does not come naturally to most helping professionals, so please do not judge those that have put in the effort to gain the skills and competencies around how to do it well, as they are the essential Impact-Entrepreneurs of our industry out to impact mental health for the better.
And now…..
I will get off my little soapbox and get on with my day.
~ Namaste ~
Yours in Private Practice Success,
Gerda
PS: Come join me and an intimate group of like-minded practice owners at my June 2019 Get-It-Done Residential Retreat. Only 2 places remain!
All details here: https://www.gerdamuller.com.au/get-it-done-retreat/
About the Author:
After starting her PhD on the topic of "Psychologists as Practice Owners: Current Challenges, Coping & Success Predictors", Gerda was appalled at the lack of support for Allied Health Professionals going into Private Practice and decided to do something about it.
This was the start of Private Practice Success Australia.
E: [email protected] | W: gerdamuller.com.au
WINNER: Adult Allied Health Private Practice Excellence Award
WINNER: Queensland MENTAL HEALTH Achievement Award for Best Small Business