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Allied Health in Australia: A Shortage, or a Symptom of Poor Resource Utilisation?

Despite being one of the fastest-growing workforces in the Australian healthcare system, allied health continues to face scrutiny over accessibility and equity of service provision. Is there truly a shortage of allied health professionals—or are systemic inefficiencies, a fragmented workforce model, and underutilised digital solutions to blame?

The Numbers Say Growth, But Access Says Otherwise

According to the Australian Institute of Health and Welfare (AIHW), allied health professions have seen the largest full-time equivalent (FTE) workforce growth across all healthcare disciplines—an increase of 226 FTE per 100,000 people between 2013 and 2022. Allied Health Professions Australia (AHPA) estimates over 200,000 practitioners now work across fields like physiotherapy, occupational therapy, speech pathology, and psychology.

Despite this, communities—particularly in rural and regional areas—continue to report long waitlists, sparse provider coverage, and inconsistent service quality.

Sole Traders: The Double-Edged Sword

One contributing factor may be the structure of service delivery. A significant portion of allied health services under the National Disability Insurance Scheme (NDIS) are provided by sole traders. Estimates suggest up to 50% of NDIS providers are sole operators.

While sole traders offer personalised care and local community ties, the model also brings clear constraints:

  • Limited capacity for high client volumes
  • Administrative overload
  • Minimal peer collaboration
  • Difficulty scaling service coverage across regions

In isolation, sole trader models may inadvertently fragment the allied health system, reducing efficiency and limiting access.

So, Is It a Shortage? Not Exactly.

The problem appears not to be workforce volume, but rather workforce distribution and service model inefficiencies. Access issues stem more from:

  • Geographic clustering of providers in metropolitan areas
  • Disconnected funding and referral pathways
  • Inefficient rostering and underutilisation of clinician time
  • Provider burnout and high turnover, especially in sole practices

What Needs to Change? Practical Solutions

  1. Strategic Workforce Coordination
    • Encourage multidisciplinary allied health hubs in regional areas
    • Promote shared caseload models to reduce burnout and improve continuity of care
    • Support sole traders to join provider collectives or cooperatives for shared admin and back-office functions
  2. Embrace Telehealth—Fully
    • The pandemic proved telehealth works. It’s time to embed it as a standard option, especially for rural clients.
    • Incentivise telepractice in public and NDIS-funded services through enhanced rebates and training.
    • Prioritise digital literacy for both providers and clients to ensure equitable access.
  3. Smart Utilisation of Technology
    • Adopt digital practice management and rostering tools that can identify underutilised clinical time
    • Use virtual supervision and inter-professional learning to maintain high service quality in remote teams
  4. Targeted Investment in Underserved Areas
    • Use provider mapping data (e.g. from the NDIS Data and Insights Hub) to direct funding and provider outreach
    • Fund local workforce pipelines—support rural students to study allied health locally and return to practice

The Bottom Line

Australia doesn’t necessarily have an allied health shortage—we have a problem with how we’re using the workforce we already have. Addressing accessibility requires rethinking how services are delivered, embracing scalable digital tools like telehealth, and supporting providers beyond the sole trader model.

With the right coordination, investment, and innovation, Australia’s growing allied health workforce can become not just larger—but smarter and more accessible.

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