Insurance VS Cash Pay Private Practice

Insurance VS Cash Pay Private Practice
Cons of insurance:
1. Below market rates
2. Hard to get off panels
3. Confidentiality
4. Delay in claims (accounts receivable)
Pros of insurance:
1. Built-in clients
2. Payment is mostly guaranteed
3. Serve a broader population
Cons of cash pay:
1. Have to overcome objection hurdles
2. Skews your practice toward serving only the privileged
3. Other therapists might judge you
Pros of cash pay:
1. Clients can often get partially reimbursed
2. Full control of your fees = massive income potential
3. Ability to protect client information
Which one is best for you?
Depends on your goals, your vision, mission, and values, and who you want to serve. Regardless of what you choose, choose wisely and in a way that protects the interests of a long, profitable, sustaining practice.
It's always easier to start cash pay and then add insurance later vs the other way around.
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#insurance #businesstips #privatepractice

[@JorgeMendoza-zm7ev]

Well balanced points! A lot of therapists avoid talking about these pros/cons and treat it like some shameful secret, but it's part of having a business

[@privatepracticeworkshop5045]

thanks a ton Jorge!

[@graesonhowland7127]

Good stuff man. Thank you so much for holding down this space.

[@chalaa8328]

I loved how you provided your opinion and experience as well!!! Thanks I loved your video!!!

[@trishmurray6675]

ANOTHER GREAT video! Thanks John

[@RayaWasser]

Very clear, balanced, and helpful. Thank you!

[@KeilynAriana]

Thank you so much for this! Very helpful 😊

[@micheledolan9636]

I am just starting out in pp and wow, your videos are incredibly helpful! Thank you so much for sharing your experience, helping out new practitioners and doing so in such a friendly and approachable way. You really deliver the goods without any fluff, but in a really digestible manner. I really appreciate it.

[@MrRootbeerme]

I'm so glad you made this video! Insurance within the Mental Health field is not talked about enough. I'm glad you included how other therapists judge others for private pay. It's great to know ALL of the consequences of our actions in business 👌

[@kendramorgan1405]

Thank you soooo much for this information. So helpful

[@ko.o2434]

Thank you! Working on growing my private practice and this was so reassuring

[@privatepracticeworkshop5045]

You got this!

[@TexasRibeye817]

Thank you so much for these videos and input. This is my first year as an LPC and I have all these questions with no one to ask

[@privatepracticeworkshop5045]

So glad you found us :)

[@georgekayser2479]

MFT student here, just getting some knowledge and wisdom on my lunch break. I enjoy your channel John! I may end up working for state agencies since I'm already a state employee, but the idea of private practice intrigues me. I will be watching all your videos to get learned!

[@privatepracticeworkshop5045]

so glad you're here!!

[@mklcounselingcoaching3264]

Oh John, where were you five years ago, ugh.......well said.

[@Enchanteralle]

It seems like cash pay may be more challenging as big corps with EAP models are luring therapists to contract with them, but eventually lowering rates as they grow bigger. They are also dipping foot into collaborating with insurance companies as the middle men. A lot of therapists contract with them due to abundance in referral and adequate pay while they accept private pay clients. However, I don’t know what this means in the future as these companies get bought out…clients may have more access to therapy through them since there are a lot more therapists available, but it seems that they will continue to lower rates for therapists. Then there is the downturn to the economy with all the massive layoffs…I wish there are organizations to protect and stand up for private practice therapists.

[@jackiestevens2853]

Excellent info

[@taktoktek]

My day time work is at non-profit agency. My private practice is only for private pay. I don't need many clients for private practice either. So, didn't chose to be a panel with any insurance company. The hardest things have been my therapist friends' comment of why? and seeing my client suffering some financial issues.

[@privatepracticeworkshop5045]

another way that society keeps mental health stigmatized, and therapists underpaid

[@savetskisayuz2453]

Great info! Thanks for helping out fellow Therapists. What state do you practice in?

[@mhwang521]

Great content! Could you break down EHR in another video? Thanks!

[@privatepracticeworkshop5045]

Yes I'll for sure do one!!

[@Khaled-wl9fk]

I have never heard of a cardiologist who doesn’t take insurance. But I know many of my fellow psychiatrists who wouldn’t panel with insurances. Oddly, those are often the same psychiatrists who complain about the stigma of mental health and how people see it inferior to physical health. Which is a very valid complaint. But maybe by not being in the same “insurance game” and fighting for better contracts like other doctors, maybe they are adding gas to the fire. Anyway, my least favorite patient is the one who says, “I don’t care about your fees I will pay cash!”. Second least favorite patient is the one who has insurance but doesn’t want to use it because “I don’t want it to be on my records”, my answer is usually “are you running for the 2024?”

[@sarahlana5124]

If you don’t mind me asking, why you don’t like cash payment? Is there any issues come with that? I’m curious to know currently an MFT student.

[@Khaled-wl9fk]

@@sarahlana5124 We all, collectively have to participate in insurance to show the demand and the power of the "market share". Then we demand higher pay for our service from insurance. Use the political and economic power of the demand for mental health and the shortage of providers to our advantage and our patients' advantage. We have to grow from trying to achieve parity in mental health reimbursement to get what this field demand which is X2 the reimbursement of other specialties. Putting mental health as a luxury service doesn't help anyone.

[@sarahlana5124]

@@Khaled-wl9fk Thank you for explaining

[@wesmac5]

Do insurance providers pay PhD and Psyd level clinicians more than master level clinicians?

[@bhsimonson]

The exam fee for dental exams is not $300-500. It’s $35-60. I’m a dental hygienist who is about to start grad school in counseling psych.

[@privatepracticeworkshop5045]

i find that very hard to believe :)

[@HammyGirl999]

This probably depends on the health insurance type. Public health state services do pay less.

[@purpletoedbillygoat]

Can you have a mixed business?

[@dyloak6450]

Can I have two private practices/two separate businesses? I want to have two separate business one that takes insurance and a completely separate business that is cash only.

[@jazzyj2243]

Will your program also work for psychiatric nurse practitioners? Or is it therapist only?

[@privatepracticeworkshop5045]

it will work for psych NPs for sure!

[@davidliu8644]

The example of dentist’ rate vs therapist rate is not appropriate. Dentist is a much harder, expensive cost and longer professional training in school.