Navigating the Challenges of Independent Contractors in Your Group Practice
If you’ve been a group practice owner for more than a year, you might agree with this statement:
One of the hardest things about this role is letting contractors make their own business decisions.
Does that resonate with you?
I’m speaking to those of you who have independent contractors (ICs) or renters making up your group practice. If so, you’ve likely encountered some of these common scenarios:
Your IC has a private practice on the side, and you’re worried they’re taking clients from you.
Your IC is asking for a higher split or rate—don’t they understand how much it costs to run your group?
Your IC is reducing their availability because they’re focusing more on their private practice—even though you have a waitlist of clients who need them.
From your perspective, these situations can feel frustrating, unreasonable, or even like a rejection of the time, energy, and resources you’ve invested in building your practice. You’ve worked hard to bring in clients, establish your brand, and support your therapists. So when an IC makes a decision that doesn’t align with your business needs, it can feel like a lack of appreciation.
Shifting Perspectives: Why ICs Make These Decisions
But let’s take a step back and consider things from their point of view. Here are some common reasons ICs might not be thinking about your business the way you do:
Financial Pressures: Just like you, they have financial responsibilities at home. With the rising cost of living, what once made ends meet might not be enough anymore. They’re looking for ways to increase their income.
Lack of Business Knowledge: Many therapists choose to work with a group practice precisely because they don’t want to deal with the administrative side of running a business. They might not fully understand the financial and logistical implications of their requests.
You’ve Made It Look Easy: Your success in filling their caseload may have given them the confidence to believe they can do the same on their own. In a way, that’s a testament to the effectiveness of your practice—well done!
Does this shift your perspective a little? Maybe it helps soften some of the frustration.
You’re Allowed to Feel Frustrated
That said, it’s completely okay to feel perturbed, disappointed, or even a bit angry when an IC’s decision doesn’t align with your vision for your business. As therapists, we often feel the need to see every perspective, be endlessly understanding, and accept every situation gracefully. But let’s not forget—you have needs, too. It’s difficult to face financial uncertainty, lose a valued team member, or feel like the effort you put into supporting someone has gone to waste.
Moving Forward: What You Can Do
The good news? You can recover, rebuild, and refine your approach to hiring and managing ICs. Here’s how:
Be Selective in Hiring: Adjust your interview and onboarding process to identify therapists whose goals align with your business model.
Clarify Expectations Upfront: Set clear policies regarding client referrals, rate structures, and practice commitments to minimize surprises down the road.
Accept That Turnover is Inevitable: Some contractors will leave, and that’s okay. Having a solid hiring pipeline can help mitigate the impact.
Share Your Experience
Have you faced a disappointing scenario with an IC? How have you handled it when a contractor asks for more and it doesn’t fit with your business model? Let’s start the conversation in the comments below!