Are you thinking about transitioning from insurance to private pay? How do you work out what to charge for the value of your sessions? How does considering the client’s standpoint help you decide?
In this podcast episode, Joe Sanok speaks about how to transition to private pay.
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In This Podcast
- Consider the client standpoint
- Look at your income numbers
- Compare prices
- Marketing and networking
Consider the client standpoint
If you are wanting to transition from insurance to private pay, consider your client’s reaction: it would not be a great feeling if one day your doctor suddenly stopped taking your insurance.
Complete a stocktake of your client base; what are the percentages of each client group that pays you through one of the big insurance companies?
This helps you have an idea of your numbers and which companies you will need to transition away from into private pay.
Make sure you are looking at the [insurance] contracts and studying to see when you can opt-out if there is a period of time and you have to give 30 days or 90 days. (Joe Sanok)
Look at your income numbers
You can also be strategic about transitioning out of insurance into private pay by looking at your income numbers and evaluating which insurance company is best for you.
Look at how close it is to what your private pay would be because sometimes with the number of clients that you are seeing if it’s an easy enough insurance to be on if they pay on time … it might be worth it to keep some insurances strategically. (Joe Sanok)
While you make the transition from majority insurance to majority cash, consider keeping one or two of your best insurance companies on board so that you will still have some reliable income until your private pay is more set up.
Look at what other clinicians are charging in your area for private pay. Depending on the state or the city, some places are more lucrative for private pay than others.
Therefore, you want to make sure what kind of area you are in before you make your final choice: does your area use more insurance, or private pay?
Not only is it about prices, but it is also about how you price your services under the value of your work.
Marketing and networking
Your website should really show this transformation. It really should show the outcomes of therapy [with you]. (Joe Sanok)
Update your social media and your website to align with the value of your work, and to show your clients that private pay is an investment in themselves.
When clients phone your practice, make sure that your assistant is well-trained in explaining the processes of private pay to the client. Be transparent with your clients about why you offer private pay and the different kinds of benefits that they can enjoy when they pay cash versus on insurance.
Books mentioned in this episode:
Useful Links mentioned in this episode:
Check out these additional resources:
- Lisa Lewis and Megghan Thompson on Understanding and Helping Your Highly Sensitive Child | POP 598
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Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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