@Sanman I'm sorry but those are lies we’ve been sold. Some of that stuff is parasite in our field which should face ethic boards.
1) cost of living is not a linear function. A 2BR apartment doesn’t cost double what a 1BR apartment. Commercial rentals also don’t function linearly aside from NNN. Billing staff can easily handle many psychologists, so having one billing person cover 10 psychologists is technically “cheaper” than covering 2. At larger economies of scale, you can purchase commercial real estate under a separate LLC and then rent back to your clinic, which makes you a lot richer.
2) market saturation as business is being used as a lie. In healthcare, the market is how many possible patients are there, how many of those can pay, and how many of those are willing to pay. That’s an easy calculation anyone can do over an easy afternoon using epidemiology stuff and public data.
3) Market saturation for salaries is bs. Say you know exactly how many potential patients who are willing to pay in your area. If you can hire a psychologist at $50k, get him/her to put in $100k in billables, then you yield $50k. The strong incentive would be for you to hire as many psychologists as your geographic area can handle and get stupidly rich in a few years if that’s what they actually believe. But that is not what those employers do for the most part. So those employers are basically saying, “I’m screwing you over, you can take it or I’ll find another sucker.” . It’s justification for screwing people over. You’re right in that it’s commonly accepted.
The real leverage, which I have never met someone gutsy enough to use is to threaten a trade restriction lawsuit in an area with one employer, or file a board complaint in a states that use the apa ethical code in their practice acts using the financial exploitation clause. Maybe that’s a potential hobby in my retirement.
In my book, employers negotiation for stupidly low salaries for their employees is likely to drive down incomes in the future, and therefore a short sighted business move. Same as the idiots who are still practicing at 70.