Setting Prices

4 min. read

Unless you’re joining an existing practice with established prices, determining how much to charge for your services can feel overwhelming. It actually is one of the trickiest bits of being a business owner.

This is a great time to enlist the advice of your accountant. He or she can help with the expense side and budget to help bring the needed fees into focus. Until then, you can start with the following suggestions.

Take 4 Steps

There are four steps you need to take before you can set prices.

1. Do some market research. What are your peers in the community charging for similar services? See if you can find out by looking at their websites and social media pages. (They may offer discounts that give you some insight.) If that doesn’t work, try calling. Your pricing should be somewhat close to other nearby providers so you don’t price yourself out of the market.

2. Know your income breakdown. It’s important to know what portion of your practice income will come from indemnity, copayments, deductibles or cash. The schedule and written policy must accommodate fees that are reasonable and customary, and reimbursable under indemnity plans, HMOS, PPOs, etc. Know what is covered under the insurance plans you participate in.