The Ins and Outs of Raising Your Clinic Fees
It can be a challenging endeavor to run a successful clinic while balancing rising operational costs. Oftentimes, raising fees is the only way for owners and practitioners to maintain their business and ensure they are fairly compensated. Broaching the topic of money in the context of delivering care can be uncomfortable.
But while the task of raising fees may seem daunting, the ethos behind it is one of sustainability and, ultimately, care for patients. A sustainable business employs its staff, pays bills, and provides quality equipment for treatments. Charging what you're truly worth allows this sustainability. A small annual rate increase, between 5 and 10 percent, can dramatically alter the landscape from struggling to stay afloat to operating with enhanced efficiency and care.
Choosing the Right Increase
Ensure your charges align with the market rate. Consider the overhead costs and ideally position yourself at the mid-to-higher end of the spectrum, as higher prices subtly signal quality. Keep in mind, though, that you must feel comfortable with your price, as confidence translates into positive client experiences.
Managing a Fear Backlash
Resistance to fee increases usually says more about the client's persona than the price itself. The client base typically consists of superfans, a silent majority, and challenging clients. It's essential to remember that catering to the small fraction of difficult clients could negatively impact your business, affecting all your clients.
Transparency is Key
Creating a communications plan is key along with creating a game plan two months in advance. Be sure your team or associates are aligned with the new plans for consistent messaging. It’s also necessary to decide which communications channels you’ll use, whether that be website banners, appointment reminders, clinic voicemail messages, newsletters, and social media. Don’t forget clear signage posted in your waiting room in advance of the increase taking effect.
Avoid “explaining too much” – it's best to state the facts without apologizing or opening up for negotiations.
Flexibility and Exceptions
Clinic owners have room to be human and empathetic. If a client expresses a difficulty to meet the new prices, it's okay to offer them a discount. But remember, it's a rare exception, not a rule.
When to Raise Fees
The beginning of the calendar year, when insurance benefits renew, or other transitions like the start of the school year in September are ideal times for fee increases. However, prices can go up anytime based on operational costs, additional skill training, and economic factors such as inflation.
Fee increases are a normal, important aspect of the healthcare industry, reflecting economic realities and ensuring the clinic's sustainability. Approach this process with a transparent communication plan and a confident, factual stance that reflects your value. The goal is to set the path for a sustainable business model. Remember, as clinic owners and practitioners, navigating discomfort is often the path to reward.
This blog is based on a Front Desk magazine article. Front Desk is published by Jane, a practice management software for health and wellness professionals.
