Weigh the full cost of contractors before you switch

What we covered

• Who Chris and Trystan are and why they started a live, unscripted stream on what they hear across Allied Health
• Contractor versus employee models, including sham contracting, margins, brand risk and why Trystan recommends a mix of both
• Reform on the horizon: Thriving Kids, NDIS pricing, Support at Home price caps and Payday Super, with several changes due in July
• Why Chris said at least 80% of his clients are still actively hiring despite the reform risk
• New grads: supervision gaps, mismatched first roles and balancing new grads against senior staff
• Siloed care, limited career progression and fewer non-billable leadership roles across Allied Health

Key moments

“Contractors, they’re so common in our space because people think it’s low risk, but it’s not always lower risk than having employees.” (Trystan)

“I’ve never been busier in my life from a recruitment perspective.” (Chris)

“…your network’s your net worth, right? So think about that network. If you don’t have a good one, build it.” (Trystan)

“You can’t have five new grads and no supervisors.” (Trystan)

“The best businesses that I work with are always constantly hiring. They’re always ready to find the right person.” (From the stream)

If you run an Allied Health business

• Consider a mix of employees and contractors: employees alone give no flex, contractors alone risk continuity and brand; Trystan noted Fair Work cases are rising
• Plan for the reforms due around July, including Support at Home price caps, NDIS pricing and Payday Super, instead of waiting to react
• Recruit ahead of need and balance your team so new grads have supervisors and senior staff have room to progress
• If referrals have dropped, define a clear niche, build your network with support coordinators, case managers and GPs and look at underserviced regional areas

If you are a clinician

• Compare the full package before choosing contracting: Chris compared a three day salaried offer at 117k pro rata with a contract at 65% billables and found the contract paid about $3,000 more, with more risk and admin
• Build skills across funding streams, for example an OT who only writes FCAs picking up some Aged Care work to de-risk
• Treat a new grad role that does not deliver the promised supervision and PD as a red flag; a poor first role can lead to a better second one
• Regional areas are underserviced and Trystan pointed to cheaper rent and a long career for clinicians who go there

Questions from the chat

• How can Allied Health, acute care, primary care and Aged Care integrate better to improve the continuity of care for consumers
• Our referrals have dropped since the start of the year; are other practices seeing the same
• What should sole traders do now the sole trader golden days are over
• We are a small practice thinking about hiring a new grad; is now the right time given the uncertainty
• AFL tips for the weekend