Brendan and Claire had built their psychology and counselling practice together over nine years. four locations across metropolitan victoria. twenty-two people. both were still seeing clients four days per week while managing the business around it. the arrangement had worked when the practice was small. at four locations and twenty-two people, it was breaking.
the partnership had developed an informal division over the years. Brendan handled clinical governance and referral relationships, Claire handled the finances and hiring. neither division had ever been formalised. both overlapped in ways that created conflict rather than coverage. decisions about hiring stalled because both needed to agree. decisions about referral strategy stalled because the financial picture and the clinical picture were never in the same room at the same time. the team felt the tension. two senior practitioners had left in the prior year citing lack of direction. both had been telling the truth.
the practice had a margin problem underneath the structural one. medicare-funded sessions were priced at the rebate rate. private sessions had not been repriced in four years. the gap between what the practice charged and what comparable practices in the same market charged was material. neither Brendan nor Claire had actioned the repricing because they were worried about client attrition. the worry was understandable. it was also costing them approximately $180,000 per year in unrealised revenue.