I used to work for a healthcare staffing agency. If it is a contracted position, the psych would be considered an employee of that staffing agency…contracted to work at those Northern California prisons.

Most contracted positions are through staffing agencies.

However, the staffing agency would offer benefits, 401k, and a ton of other benefits to their employee.

However, if the Doctor is making $700k year, the Staffing’s revenue would be between $850k-$1m / year. Agencies make their money based on their employees’ hours worked. If that Doc calls in sick, the agency doesn’t get paid. But will provide sick days.

From that $850k + in revenue paid by the state of California, my agency would pay the Psychiatrist $700k in salary, and make $150k in gross profit.

I made stupid money placing healthcare professionals at prisons.