How To Raise Your Rate In Private Practice
When you’re in business long enough, you will consider raising your rates for a variety of reasons.
Note this post is relevant only for cash-pay private practices as insurance has a standard rate of reimbursement you signed up for through your contract.
Reasons To Raise Your Rate
Inflation
Moving from associate/provisionally licensed to independently licensed
Standard 3-5% raise annually
To see less clients for whatever reason (e.g. preventing burn out, highly sensitive therapist)
To save more money in retirement and future plans
To pay off loans and debt
To pay for therapy trainings and workshops (e.g. EMDR, IFS, ketamine assisted treatment training, sex therapy certificate). IFS training begins at $4,000, EMDR averages $1,500-1,900, and sex therapy certification ranges anywhere from $7,000-9,000.
Reasons Not To Raise Your Rate
You don’t need to make more money
You have a comfortable life at the moment
You are able to take care of yourself financially, pay off loans/debt, and live the life you want
You don’t feel comfortable just yet due to a variety of reasons including: 1) Recently graduated, 2) Lack of experience, 3) Impostor syndrome, 4) Wanting to work with people who aren’t able to afford a higher fee.
Tips For Raising Your Rate
Let clients know with ample time (30 days is a good time frame, but 60-90 days is even better, so they can plan accordingly to save or find another clinician)
Put the possibility of fee increases in your informed consent so it’s documented and known when clients start treatment with you
Have current clients sign a new informed consent and fee agreement forms if you are raising rates on current clients
Let clients know in session and follow up with an email or letter for their records (put in their file)
Have a reason for why you are raising rates related to your value (1-2 sentence is fine, no need to over explain)
Questions To Ask Yourself When Raising Rates
Do I want to raise my rate on current clients?
Or just new incoming clients?
Will reduced fee/sliding scale clients remain at their rate forever?
What is my policy on reduced fee/sliding scale slots?
What happens if a client at a reduced fee has a dramatic positive change in income (e.g. new job, big raise, etc.)?
If I do raise my rates on current clients, do I want to raise them at once or month by month?
What makes sense for me and my business?
Do I want to incrementally increase my rate (e.g. 5-15 dollars) or a larger fee increase (e.g. more than 20 dollars)?
What if a client is unable to afford my services due to the fee increase?
How will I address this?
Consider Social Work Code of Ethics and charging a reasonable fee (or your respective profession’s ethics)
Have referrals for lower cost clinicians or insurance based clinicians if clients are unable to afford your new rate