​NEW GRAD GUIDE TO PRIVATE PRACTICE PHYSIOTHERAPY 2

STARTING YOUR CAREER

You’ve been offered a job and it seems great, you are extremely excited to start your career as a physiotherapist. Before getting ahead of yourself, it is important to be diligent before signing a contract. How does the company want to structure your position – as an employee or an independent contractor?

Employee

Usually reserved for larger, more established practices and government positions.
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Pros:

• Stability in work and pay/ job security
• Structured mentorship
• Leave entitlements
• Industrial relation protections
• Employee benefits

Cons:

• Lack of flexibility in schedule
• Package may be structured differently
• Less flexibility to take on other work

Independent Contractor

Being hired as an employee is straightforward for most graduates, so we will focus on the independent contractor side of the business, since many positions in private practice function this way.

As an independent contractor you have the right to decide where, when and how your work is done. This is extremely important to remember. With the added risk of being self-employed, you gain the flexibility in your schedule and hours.

To check whether the terms of your contract mean indicate that you are an employee or  a contractor please visit the ATO calculator here  and contact the fair work ombudsman here.

TIP: Before accepting a position and starting your career, it is highly suggested that you shadow another physiotherapist at the clinic during a busy day.
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This is good for two reasons:

1. To observe the flow and atmosphere of the clinic
2. To observe the amount of patient traffic

​If you sense an unfriendly atmosphere, an inefficient clinic operation, or a lack of patient traffic, don’t assume it will change once you accept the position. Unfortunately, building a full caseload takes a lot of time and effort, and the location and reputation of the clinic plays a large role in the amount of new patients that walk through the door. Don’t expect to start off extremely busy right away as a new grad until you build your reputation as a clinician. Also, the time of year you start your career will impact how busy you will be. Many physiotherapy clinics have slow periods, such as right after the holidays and during the summer months. Also, there will be many days where a patient will not show up for an appointment or will cancel at the last minute. Remember, as an independent contractor, you only get paid when seeing a patient.

More common in smaller physiotherapy clinics and small-medium sized companies.
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Pros:

• Flexibility in schedule and place of work
• Can deduct business expenses

Cons:

• Less stability in your job
• Have to budget for income tax
• No benefits/employee entitlements (eg. Leave)

Negotiating Pay

Due to the lack of: benefits, job security, vacation, holiday pay, bonuses, and consistent work hours, independent contractors usually receive a higher percentage of billings. As a new graduate, your pay will likely be structured as a fee for service. This model means you are only getting paid when you see a patient.  Typically the fee split is percentage based and can range from 35-50%. New graduates normally receive a lower percentage to start. Percentage will increase with experience, continuing education courses, and negotiation skills.

To determine if you are receiving fair pay compared to an employed physiotherapist position, it is helpful to consider a few variables and run the numbers:

1. Clinic location (busier clinics will be able to bring in more new patients)
2. Service fees (see how much the clinic charges for initial and follow-up sessions; you will make a percentage of this amount)
3. Hours of work (most new grads will start on a part-time basis and may want to find a second job)
4. Adjunct services (determine if you receive a percentage of sales for orthotics or therapy equipment)
5. Employee cost

Employee Benefits

Employee cost is the cost to the employer of hiring an employee instead of an independent contractor.  Typically, an employee will cost the company ~25% more.

​This is due to:

• Benefits (health, dental, etc)
• Vacation pay
• Insurances
• Supplies
• Training

In general, an independent contractor should charge 20-30% more for their services compared to a full-time employee. Therefore, if you could accept a position in a clinic at $20/hour as an employee, an independent contractor should be paid $26/hour (i.e. 30% more) for that same position to be in the same position financially.

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​NEW GRAD GUIDE TO PRIVATE PRACTICE PHYSIOTHERAPY 1