Are you unsure as to whether or not you should accept insurance in your practice? Do the benefits of insurance or private pay outweigh the cons? Would you like some tips to help you make the decision?
In this ‘Five Questions for Private Practice’ series podcast episode, Joe Sanok speaks about the differences between accepting insurance payments and private payments and shares some tips to help you make your decision.
In This Podcast
In this podcast series, episode 2, Joe Sanok will walk you through weighing out the pros and cons of accepting insurance payments or private payments.
The Big Question
The big “taking insurance” question. What drives this question? It’s really, will I make enough money in my private practice? No one wants to fail in practice. We don’t start a practice, only to feel stressed and like we’re letting down our community.
We start a practice to make an impact.
I want to give you a mindset regarding insurance.
Taking insurance isn’t bad, you just have to know when and why you want to do it. First, it’s about where you spend time. Would you rather spend time networking and marketing yourself or working on systems and billing?
Private Pay Benefits:
- You typically make more per hour
- You see fewer people
- Paperwork is easier
- Immediate payment
- Clients are often more dedicated and follow-through on treatment
Private Pay Cons:
- You have to niche down more
- Marketing is key
- You need to understand how to articulate your value
When you have a private pay practice, more of your time is spent on networking with other people that may refer to you. Also, you’ll probably spend about twice as much time on your marketing, website, and branding. If you’re artistic, enjoy the visual side of growing a practice, and enjoy learning about new ways to get the word out, private pay might be for you. Also, you can see fewer clients at a higher rate.
- You have a built-in referral network
- People expect to use insurance
- Doctors refer more often
- You don’t get paid right away
- You need an EHR (Here’s who I recommend – use the promo code ‘Joe’ to get 2 months free), and probably a biller (Here’s who I recommend)
- If your systems are off, you sometimes will lose money and not get paid
An insurance-based practice might be for you if you want to set up systems for automation. Maybe that’s internal systems or finding billers to help you grow your practice. You’ll have to navigate getting paneled with an insurance company, setting up an EHR, and getting paid well after you see someone. Also, overall, you’ll see more people at a lower rate, but if you scale into a group practice, it can be very lucrative.
There are pros and cons to each decision. How will you decide what you’ll do with your practice?
Here are some tips to help:
- Ask other clinicians what they have done.
- Interview billers before you decide.
- Meet with some local massage therapists, doctors, and yoga teachers to learn how and when they refer.
- Come to one of my free live events and ask me 🙂
- How Much Time Should I Spend on My Private Practice? Five Questions for Private Practice Series 1 of 5 | PoP 366
- How to Kill It In Private Practice Masterclass
- Slow Down School
- Killin’it Camp
- Killin’it Camp Tickets
- Next Level Practice
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.
Thanks For Listening!
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