Striking a Balance Between Accepting Insurance and Earning a Good Income
As a clinician, it can be a struggle to balance accepting insurance while still trying to make a good living and not burning out. It can be disheartening to put in the effort and not get the return you’re hoping for. I have talked to many clinicians who feel committed to accepting insurance as a way to remain accessible to clients. However, these same clinicians also often talk about how they struggle to make a liveable and sustainable income. They also address how they struggle to not suffer from the same burnout they sought to escape by leaving agency work.
An Unbalanced System
Sadly, this system is working how it should. Not to provide a good wage to clinicians or support clients in getting what they need, but to make insurance companies and their shareholders' money. So, the problem isn't clinicians but the system as a whole. Insurance companies even have policies in place that make it difficult for clinicians to strike a balance. Non-disclosure agreements, delayed payments, and claim denials are just some of them. But despite the system, there are still actions you can take to support yourself and your clients.
So, how do you strike a balance between accepting insurance and earning a good income as a solo practice owner?
Choose the Highest Paying Plans
Insurance companies tend to put clinicians who accept insurance in a bind. To stick to their values or remain accessible to clients, they have to remain subject to the rules and risks of an insurance-based practice. Or, they have to leave insurance altogether to receive the sustainable income they need to stay afloat.
However, you don’t have to accept all plans from every insurance company. You can choose the highest-paying plans and leave the lowest-paying ones. By doing this, you can increase your earnings per hour. This can, hopefully, allow you to earn more or reduce your caseload.
Increase Your Private Pay Rate
Another way to remain accessible to clients with insurance is by raising your private pay rate. This method is another way to increase your hourly earnings so that you can earn a liveable and sustainable income. Raising the private pay rate will allow you to balance the lower pay rates paid by insurance while still allowing you to remain accessible and accountable to those who need your help.
Stop Offering Sliding Scale
Sliding scale is a wonderful way to remain accessible to those who need it, but you are already providing services at a reduced rate by accepting insurance. You are not obligated to also take sliding scale private pay clients as well. You want to help as many people as you can, but you need to be realistic and take care of yourself first. If you are struggling financially yourself, taking sliding scale private pay clients is not the answer.
Hire a Biller
Saving yourself time and reducing your stress is another way to remain accessible while still maintaining a good income. If you are directly credentialed, hiring a trusted biller can save you hours of time along with a lot of stress. Billers not only handle submissions but also are the ones who will spend hours on hold instead of you when issues arise. By handing off this task to a trusted professional, you obtain more free time to be able to see more clients. Or do whatever else you want to do with that time.
Join a Third-Party Credentialing Service
These companies are considered "big tech" but they do fill a niche in the industry. They are able to accomplish what solo practice clinicians cannot. Which is negotiating with insurance companies for higher rates. They also handle claim submissions and denials. Along with timely payment! This allows you to keep the number of insurance spots available in your practice without risking a breach of contract. As long as these companies act with integrity, they create an opportunity for you to find a balance between insurance and private pay.
Facilitate OON Submissions
Another creative way to remain accessible to clients is to consider partnering with a service to help private pay clients submit for reimbursement. Companies like SuperBill and Reimbusify facilitate OON submission for clients at little to no additional cost. This can allow you to accept more private pay clients while knowing that you will be reimbursed for services. So, if you decide to raise your private pay rates to balance the lower pay insurance rates, you don't run the risk of your practice not receiving payments.
You Cannot Fix a Broken System With Self-Sacrifice
As a solo practice owner, you cannot fix a broken system nor make up for it with self-sacrifice. Implementing these strategies allows you to continue to be accessible to clients while still earning a sustainable and liveable income. All the while still aligning with your personal values and goals. Taking these steps can help you to remain in the business of helping those who need it, without burning out.
Interested in Working with a Business Coach for Therapists in Sacramento, CA, or Nationwide?
Working around a broken system should not take self-sacrifice. Learning strategies to keep your private practice running for years to come, while still making a living is essential. At Balanced Private Practice, we want to help you learn tools that will help increase your income and show up fully in both your personal & professional life. Together, we can keep your practice running for years to come through connection, community, and coaching. So, if you're interested in preparing to launch your own private practice, reach out and we can chat about how we can work together. If you're interested in beginning:
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Other Business Programs Offered at Balanced Private Practice
You may be an already established business owner, but that doesn't mean you can't leverage our services to help increase your knowledge and understanding of the business process. We offer a variety of programs that will help you strike a balance in your practice today. I provide a range of programs for therapists to help them in their practice, from marketing coaching and training to business planning and consulting. This way you can begin building your private practice on your terms or restructuring it to fit your reality. The programs I provide are: Private Practice Mentorship, Private Practice Quick Start, and Fee Setting Success. If you want to gain clarity and direction on building a thriving private practice, I'm here to help. Let's do the damn thing!
About the Author
Meet Audrey Schoen, LMFT, business consultant, and entrepreneur. She supports solo private practice owners in finding a sustainable income while navigating the complexities of accepting insurance. With firsthand experience as a successful private practice owner and a parent of twins, Audrey understands the challenges of balancing work, parenthood, and self-care. By simplifying complex information into actionable steps, she empowers practitioners to launch their practices confidently. While also avoiding costly mistakes, and achieving their dreams. Audrey's passion lies in helping private practice owners create a practice that aligns with their lives. While offering invaluable knowledge and guidance to build thriving and fulfilling practices.