WHO is paying WHO?

It is important to note that when you are taking new clinicians onboard - to join your group private practice as subcontractors - that they will come with a certain understanding of what to expect, how things are set up, and how things work or don’t work in a group private practice.

Often times, they get this understanding from:

- having consulted at another group private practice,

- having spoken peers whom consulted at another group private practice,

- having spoken to a supervisor, 

- having spoken to an university lecturer,

- having read comments in various Facebook Groups,

- having had discussions at professional events, 

- etc etc...the list goes on…

This means that you can not ASSUME that they know how YOUR group private practice operates and is run (even if they seem like they do or should).

You will be doing yourself (and them) a huge disservice to not ensure that they are 100% across how YOUR group private practice operates.

A common example of this, that often rears its ugly head with my Private Practice Success private clients are….

>> Who is PAYING who <<

Have you ever heard something like this from one of your clinicians...

‘I PAY x% of my earrings to the practice…’

‘The practice TAKES x% CUT of MY earnings’…

And very often these sentences are followed by something like:

‘…and therefore I expect there to always be admin coverage when I see clients’

..or something similar. '

The underlying expectation is that YOU (the practice owner) really works for THEM (the clinician) as YOU are providing THEM with a service because THEY are paying YOU.

[ Interesting fact, should you be in this scenario: Although you are now providing the service, the clinician will have a hissy fit if you dare to actually increase your service fee like any other business would, as how dare you take a bigger CUT of their money - which is just another reason why I stay miles and miles away from this arrangement. If you haven’t guessed by now, I prefer to avoid drama. ]

And if THAT is what you want and how you’ve set up your group private practice, then YOU need to ACCEPT that you made the choice to be working FOR the subcontractor- that is, you as the practice/business is providing this service to them...and they are really your clients, right?

In my opinion, to be honest, THAT is NOT a subcontracting arrangement. It is a Serviced Office (Room Rental) arrangement - and if that is your business vision then that’s cool too.

However, I’m sure you know me well enough to know that I am not in this business to work for someone else. I gladly admit that I like to be ‘the client’ in our scenario.

Why? Because I like to be the boss (nothing wrong with that by the way). Isn’t that why people go into business for themselves?

Which means that if you follow my business model you need to sit your new subcontractor down and wipe the slate clean of how they THINK it works (or should work) and take the time to properly educate them on your model.

Which (in short) is this:

- The client pays the practice

- The money goes into the practice’s bank account

- All the money hence belongs to the practice (not the subcontractor)

- The practice uses that money as it pleases to pay all overheads

- The subcontractor invoices the practice for an agreed amount (often calculated using a %)

- And that is it.

Plan and simple.

To re-iterate.

- The money coming in belongs to the practice - which means the practice is NOT taking a cut of the subcontractor's money.

- The subcontractor invoices the practice - which means the subcontractor is NOT paying the practice - instead, the practice pays them.

Unless you educate your subcontractor on your model, you can expect resentment and other difficult emotions to bubble up that you will have to manage.

So take the time to…

1. Get clear on your model of choice.

2. Get clear on the long-term business and personal implications of this model.

3. Own your model of choice.

4. Proudly share your model with your current and new subcontractors to ensure everyone is 100% on the same page.

Communication is key.

I know I might sound harsh on this topic, but I’ve seen the emotional turmoil that private practice owners face on a daily basis as a result of an unclear model that causes confusion with both parties, as it was never thoroughly thought through and discussed.

You absolutely must get this right.

Yours in Private Practice Success,

Gerda

PS:

Time is running out to join the 90 Day Sprint!

This is one of my best and most popular 1:1 Mentoring Programs to date :)

Although very popular, I can only run it once the majority of my in-person events for the year is done, which means this will only come around once a year - and the time is now!

This is a high-level 1:1 Mentoring & Coaching Program, aimed at sky-rocketing your private practice growth.

Email me at gerda@private-practice-success.com for more details or to secure your place 💜

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: gerda@private-practice-success.com | W: gerdamuller.com.au

WINNER: Queensland MENTAL HEALTH Achievement Award for Best Small Business