Updating fee schedules appropriately

Knowing the importance of updating your rates is only half the battle. Now you must actually take care of your fee schedule. If you still feel uncomfortable raising prices and setting new rates, try the following strategies to ease the process and fend off critics:

• Use objective standards to set fair prices. The Consumer Price Index, relative value scales, cost-based accounting, and regional "usual and customary" charge rates provide impartial data to help you create sensible fees.
• Budget time and resources to provide care for those who cannot afford it. One radiologist sets aside one day out of every 10 to provide free care, calling it his medical tithe.

Objective measures and comparisons help you approach fee setting with a proper businesslike attitude. And purposefully helping patients who cannot afford your services may help provide you with the courage to ask for fair payment from those who can.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.