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Collecting Fees for a Therapy Practice

financial advice for therapists: Therapy practice financial management

Dear Dangerously in Love with Finance,

I have a private therapy practice located in Las Vegas, Nevada. My practice accepts patients who pay in private or under insurance coverage. Although we have had excellent patient days, time without end is spent fighting to get payment of fees, co-payments, and deductibles. As a therapist, it is awkward for me to ask to get paid for the services we provide or to have one of my staff members do so. This fear of addressing finances is starting to impact our accounting, cash flow and overall financial health of the practice. How can I get over this fear and make sure we collect fees for service?

— Anxious Therapist

Dear Anxious Therapist,

Your problem is one that many in the therapy profession can relate to on some level. The discomfort around discussing money is a common challenge, yet addressing it is vital for the financial health of your practice.

Here are a few tips to collecting payment and protect the financial health of your private practice:

Shift Your Perspective: Acknowledge that the process of collecting fees is an important part of therapy. People who pay for their services hold greater respect and value towards their therapy.

Openly Discuss Fees: This shows respect for one’s concern. This builds a relationship based on mutual respect and transparency.

Establish Clear Financial Policies: Prepare straightforward payment policies and ensure these are presented at the soonest time possible. These must be part of the intake forms and shared during the first session. Establishing clear expectations early on also allows for less awkwardness and confusion later.

Train Your Team: Equip your staff to engage in empathetic and professional financial discussion. Confidence around the discussions can be improved through practice within a simulated environment. Make them understand their importance in ensuring the financial health of the practice, which is needed to keep them employed and to guarantee quality services.

Automated Systems: The other nice thing about having practice management software is the fact that it comes with automated billing and reminders. These tools can save both your staff’s time as well as your own, relieving you of the hustle of following up overdue invoices to ensure cash flow.

Use Professional Support that Specializes in Therapy Practice:

Hire a medical biller. They will take charge of the billing and collection while you and your staff focus on delivering care.

The medical biller ensures that insurance is verified before the first session and checks the patient’s benefits beforehand.

You should also hire the services of a financial accountant expert whose task is to create a streamline process for your bookkeeping, accounting and fee collection.

Have Empathy but Set Boundaries:

Be sensitive to financial discussions but ensure that you set clear boundaries.

Be empathetic, at the same time remember that your therapy practice depends on positive cash flow to stay afloat.

Remember, it is not you who is asking for the money so much as it is guaranteeing continued service of huge value to your patients.

Coupling empathy with firm financial management in a way that assures the protection of your therapy practice and enhances the therapeutic experience of your patients.

If you need any bookkeeping, accounting or financial management for your therapy practice, please do not hesitate to reach out. As this is what we do…

Regards,

Dangerously in Love with Finance

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Struggling with the financial aspects of your therapy practice?

If you are asking questions like, “How can I get over the discomfort of collecting fees for service?” – you’re not alone!

We specialize in managing therapy practice finances, from collecting fees and managing cash flow to setting clear payment policies. Let us help you streamline your billing, accounting, and financial management. Reach out today to discuss your unique needs and find out how we can enhance your practice’s financial health and stability. Don’t let financial concerns hold you back!

Contact Healthy Bodies of Finance today and take the first step towards a brighter financial future.

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This article is designed to provide information only and should not be considered legal or tax advice. Because of the complexity of the law and the variables in your own personal tax and accounting situation, you can’t rely on our advice specifically related to your unique circumstances. In order to get the best tax savings and legal advice available to you, you should consult with your own accountant, attorney or advisor regarding your particular facts and circumstances. Healthy Bodies of Finance is an accounting firm that specializes in working with health and wellness providers. We provide monthly accounting & bookkeeping services and financial education. For more information on our specialized services for health and wellness providers please contact us at [email protected]