Navigating your office’s pricing scale and model can be tricky business. On one hand, you don’t want to charge too much and limit access to your services. On the other hand, if you price your services too low, people may question your reputation and worry whether or not you’re legitimate. Of course, neither hand of this issue is discussed during school.
So, how do you find your optimal pricing model that reflects your office’s skill sets and values? We’ve got 4 tips to help! Whether you’re just starting out or looking to remodel how you price your services, these 4 tips can help you find the right rates for your circumstances.
Consider Your Market
Extremely specialized physical therapy, like offices who treat world-class athletes, need to consider charging more for the services provided. If you are an office that is in high demand for your services, then there’s no reason not to charge a premium rate.
Understand Your Pricing Model
How you can price your services will vary on your pricing model. A cash-pay patient system will allow you to have more leeway with your rates. However, if your clinic relies on third-party payers, like insurance, even to a certain degree, if will impact your fee schedule. Reimbursement rates from insurance can help you keep your doors open, but may limit your fee schedule.
When structuring your payment rates you have to respect your unique value. However, if other offices in the area are charging more or dramatically less, you need to consider adjusting your prices to reflect your local market. If you have a good working relationship with some of the other offices in your area, call them to discuss your fee schedule. Reassure them that you would be willing to talk about yours in the future when they opt to adjust theirs.
Use a Single Fee Schedule
Creating a fee schedule for every individual insurance payer would be too time consuming and frustrating. Creating a single fee schedule will benefit your clinicians and your patients. You may still be able to offer small discounts for patients who wish to pay out of pocket or with cash. Be aware of the rules and regulations surrounding discounted services.
Now that you’ve got the tips to create a financially stable and successful PT practice, we’ve got one more bonus tip for you…
EcoPro pillow covers can help you save over $3,000 per year, per therapist. The annual cost of 2 full-time physical therapists using our pillow covers comes to $47.96 a year! If you want to learn more about the benefits of our pillow covers you can read about them here. Shop our classic colors and two-tone colored covers here.