Physio Pricing: Why $261/hour Changes Everything

$261/hour: The Pricing Correction That Changes Everything

Two years ago, I said $200/hour was the floor. Now the data says $261/hour. We’ve moved from opinion to evidence — and this time, there’s no excuse left.

For too long, physiotherapy has lived in the margins — good clinicians trapped in broken business models. The result: exhaustion, burnout, and a talent drain from the profession. 33% of physios cite salary as their reason for leaving; 38% name burnout. These aren’t just stats — they’re a warning.

This month, the Australian Physiotherapy Association published the **Hourly Rate for the Provision of Physiotherapy Services** on their advocacy site. Check it out here. For the first time, we have formal pricing evidence: $261 per hour.

After decades of undercharging, cross-subsidising, and apologising for profit, the profession finally has an economic anchor. This is not a “recommended fee” — it’s a sustainability benchmark. Anything below it, and your practice model is mathematically broken.

Why This Matters

When I first wrote about pricing strategy, I said that how you price is how you position — it’s an act of self-respect. Undercharge, and you teach your market (patients, referrers, even staff) to undervalue you. That mentality has cost us decades of talent and trust.

What Nous Group has done is plant the first real benchmark for physiotherapy’s economic self-worth. $261/hour isn’t about charging more — it’s about correcting the signal.

Why the APA Got It Right

The smartest move was not publishing a “graduate rate.” If they had, insurers and schemes would use it as a ceiling. Instead, we have a single benchmark that reflects real delivery costs — and it protects both floor and ceiling for the profession.

So What Does $261/hour Actually Mean?

It means the market finally caught up to reality. At a 30-minute equivalent, that’s $130–$150 per session — exactly where many high-performing clinics already sit. If you’re below that, you’re either subsidising volume or underpaying staff. The numbers don’t lie — the benchmark just makes them visible.

Commercial Competence Beats Tenure

Nous refers to the $300/hour tier as for “extensive experience.” I call it commercial competence. Time in the job doesn’t guarantee value — reputation, outcomes, demand do. If you’re driving referrals, building your funnel, and delivering results, you’ve earned that band.

From $193.99 to $261/hour: The Market Finally Aligned

A few years back I argued NDIS effectively anchored the floor at $193.99/hour. The new data validates and lifts that anchor. This is structural correction, not incremental change.

The Next Battle — Private Health Insurers

Private health will be the next front line. The APA’s benchmark dismantles the “reasonable fee” narrative. As clinics align to $130–$150 sessions, rebates will either adapt — or become irrelevant. Clinics that own their private-pay strategy will prevail.

What to Do Now

• Raise your 30-minute rate to $130–$150. This is the new baseline.
• Tier pricing by skill / outcomes. Let senior and specialist rates live above the base.
• Stop apologising for earning. Profit funds culture, training, infrastructure.
• Double down on private-pay marketing and conversion. To see how to build this, read my guide on how to attract private patients to your physio practice.

Nous Group (2025). Hourly Rate for the Provision of Physiotherapy Services, commissioned by the Australian Physiotherapy Association — published on the APA advocacy site.