*This article is really directed for the contractor*
A Clinician's Guide to Contractor Pay
Jun 09, 2021
Oh, this can be such a touchy subject for people. Whether the practice has a fee schedule or a percentage split, contractors often feel it's never enough. So, how much is enough?
Re-Frame your thought process.
I guess the first thing we need to understand is not what the split is or the hourly dollar amount, but more importantly, how much do you want to be earning? Do you want to be working 9 am - 1 pm, 3 days a week, earning $150,000, seeing your ideal clients, who pay and are also so engaged in therapy you don't have to do too much follow up?
Well, let me tell you. It is possible.
How?
Let me tell you:
Let's assume you work 40 weeks a year. (I think that may be generous if you're also keen to take school holidays off to be with your kids)
$2750 per week.
$916 per day.
$312 per client session
That is also assuming:
1. You have a really strong reputation for your ideal client.
2. You have 100% client attendance, 100% of the year.
3. You have zero overheads in room rental, internet, blah blah blah.
4. You have zero reception staff.
5. You have a zero tolerance for late payments, third party payers, and all clients can afford your session, 100% of the time.
6. Your clients have enough self-awareness to know they should be attending and they don't reschedule, stop therapy, or cancel and forget to rebook.
7. Your full fee paying, self-aware clients can come in during your working hours, on your specific days.
Understand its not about the fee schedule or the percentage split.
Let's face it. You may not honestly know how much it costs to run a business. You do know; however, that you want to have a nice take home pay for the hours you work. You also are aware that there is a lot of non-reimbursable hours that you work.
So my suggestion in contract negotiations is first to figure out how much you should/could be making. Realistically. If it is $150,000 you wish to take home, be aware that you are likely going to have to bill, at minimum, double that in a private practice setting.
Know your numbers.
Clinicians have a very hard time talking about money. (Maybe that is most people?) I suggest you know a few facts (not 'my guess is' or 'I think' or 'I have a hunch') of the following:
1. What you want to earn per year.
2. What your client attendance is (if you're new to private practice, just assume its going to sit around 60%)
3. Be real with yourself if you are actually going to enforce your cancellation policy. (want suggestions for ways to talk about the cancellation policy? Check out this post.)
Next time, we'll all make sure to invest in bitcoins.... :-P
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