Why embracing high-quality associated providers could future-proof your care delivery

As the Aged Care Act 2024 ushers in a new era of reform, aged-care providers are re-evaluating how they deliver allied health — a critical pillar of reablement, functional independence, and quality of life for older Australians.

Across the sector, many organisations are moving to internal allied-health employment models — building their own teams of physiotherapists, occupational therapists, speech pathologists, and other clinicians. The motivations are clear: greater control, alignment with organisational culture, and perceived improvements in compliance and quality oversight.

However, as the new “associated provider” regime under the Act takes shape, it’s becoming equally clear that the external allied-health partner model — when executed with the right partner — remains not only viable but strategically advantageous. The key lies in partnering with accredited, high-quality allied-health providers that can meet the rigorous governance, compliance, and reporting expectations the reform demands.

Understanding the new landscape: “Associated providers” and accountability

The Aged Care Act 2024 introduces the concept of an associated provider — any external entity engaged by a registered aged-care provider to deliver part of its funded services.

As legal commentary from firms such as Lavan notes, this definition is intentionally broad. Whether you engage an allied-health company, a locum agency, or a sole practitioner, if they contribute to your funded care delivery, they are an associated provider — and you remain responsible for their conduct and quality outcomes.

This framework reflects the regulator’s message: you can outsource the service, but not the accountability.

Why many providers are moving to internal allied-health models

The shift toward internal models is understandable — and, in many contexts, sensible. Providers want:

• Direct oversight of allied-health practice, quality, and compliance.
• Cultural integration across nursing, personal care, and clinical teams.
• Continuity for residents and clients, avoiding the perceived variability of contracted services.
• Cost control, by reducing agency mark-ups and managing allied-health labour in-house.

For some large, well-resourced organisations, building internal allied-health teams aligns with long-term strategy. It allows full visibility and seamless integration within multidisciplinary models.

But this approach comes with new challenges — particularly in the current tight labour market, where allied-health professionals are in high demand, “short-stay” employment trends are common, and the recruitment treadmill never seems to stop turning. Maintaining coverage across wide geographic areas, especially for in-home service delivery, can quickly become operationally unsustainable.

The case for embracing high-quality associated providers

Amidst this reality, many providers are re-examining the benefits of partnering with external allied-health providers — now formally recognised as associated providers under the Act.

When the external partner is well-credentialed, accredited, and governance-mature, the model offers significant strategic advantages:

• Workforce stability and reach – A high-quality allied-health organisation can draw from a broader pool of clinicians, providing reliable service continuity across diverse geographies — without the endless recruitment cycle.
• Scalable flexibility – External partners can adjust resource levels in response to demand surges (e.g., short-term reablement, seasonal programs, transitional care), supporting efficient use of funds.
• Governance strength – Mature providers have established quality systems, clinical governance frameworks, credentialing processes, and data reporting capabilities — often already aligned with recognised frameworks such as the Primary and Community Care Standards.
• Operational relief – The provider manages recruitment, professional development, credentialing, and rostering, allowing aged-care operators to focus on core service delivery and compliance oversight.
• Outcome measurement – Many external allied-health organisations have robust outcome and utilisation metrics, giving aged-care providers the evidence base needed for regulatory assurance and quality improvement.

Importantly, under the new regime, a strong associated provider relationship is no longer a loose arrangement — it must be a partnership built on shared governance, transparent data, and mutual accountability.

The challenge for sole traders and micro-providers

The reforms also raise a sobering point: while sole-practitioner allied-health providers remain essential to the aged-care ecosystem — particularly in rural and regional communities — the new compliance expectations will be difficult for many to meet alone.

The requirements for worker screening, reporting, governance, risk management, and documentation — along with the administrative and insurance costs — are significant. For a sole trader, developing and maintaining the level of quality system expected of an associated provider could be time-consuming, costly, and operationally unfeasible.

This doesn’t diminish their value — sole practitioners are often the lifeblood of local aged-care access. But it does suggest a likely market shift: many may seek to align with or operate under the umbrella of larger accredited allied-health organisations, where governance, systems, and compliance infrastructure are already in place.

What a “good” associated allied-health provider looks like under the new Act

As aged-care organisations navigate this new compliance landscape, selecting the right allied-health partner is crucial. The ideal provider should demonstrate:

• Accredited quality and governance systems — aligned with recognised standards such as the Primary and Community Care Standards, ensuring structured clinical oversight and risk management.
• Comprehensive workforce credentialing — evidence of professional registration, police checks, screening compliance, and adherence to the Aged Care Code of Conduct.
• Proven integration capability — ability to work within your digital systems, care plans, and multidisciplinary teams, maintaining seamless communication.
• Transparent reporting — outcome data, utilisation rates, incident logs, and client satisfaction metrics.
• Geographic and service flexibility — capability to deliver in-home, residential, and community-based allied-health services across metro and regional locations.
• Shared governance — participation in joint quality meetings, escalation pathways, and co-branded compliance reviews.

Providers like Agestrong exemplify this approach — offering aged-care organisations the assurance of accredited governance, robust quality systems, and scalable service delivery, all aligned to accepted primary and community care standards.

The balanced way forward

The internal allied-health employment model will continue to make sense for some organisations — especially where scale, stability, and direct integration can be achieved.

But for many, the future lies in strategic partnership: engaging high-quality, accredited allied-health associated providers who bring the compliance rigour, flexibility, and workforce capacity that the new Aged Care Act demands.

Rather than viewing outsourcing as a risk, providers can see it as an opportunity — to strengthen governance, enhance client outcomes, and remain agile in a rapidly evolving sector.

In the new regulatory environment, one principle holds true:

It’s not about who employs the clinician — it’s about the quality, governance, and outcomes behind the service they deliver.