Should You Offer a Sliding Scale in Private Practice?

Should You Offer a Sliding Scale in Private Practice?
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Depending on who you ask about sliding scales, you’ll hear strong opinions in different directions about best practices. Some therapists say that it’s unethical to offer a sliding scale in all circumstances, whereas others will say that it’s our duty to offer a sliding scale. Though I’m not a legal authority when it comes to offering a reduced rate in private practice, there are some key items to consider before offering a sliding scale. In this video I go over some key questions to consider when offering a sliding scale.
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This video is geared for therapists of all kinds, including psychologists, MFTs, LPCCs, social workers, and others in the clinical counseling field.
Welcome to Private Practice Skills! I’m Dr. Marie Fang, psychologist in private practice. I post videos offering tools I learned the hard way about starting and growing private practice so that you don’t have to.
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This video is not intended as professional or legal advice. Be sure to seek the services of a professional if you are in need of them.
So first, what is a sliding scale? A sliding scale is a reduced rate offered to those with fewer resources. A sliding scale is NOT charging clients different rates based on their stated preferences or based on how you feel. It is not a sale or a discount, either. The reduced rate is based on a client’s resources.
I know many therapists who say they offer a sliding scale, but in reality they allow the client to set their own rate. When discussing the fee, they ask the client how much they’re able to pay and charge that amount. This is not a sliding scale, and could potentially be unethical.
Who is allowed to offer a sliding scale?
If you bill to insurance, it’s likely that you’re not allowed to charge a sliding scale fee for your clients who pay out of pocket. The reason for this is it starts to look like insurance fraud: You charge one rate to insurance when you bill them, but you charge something much lower when someone sees you out of pocket. This is a huge no-no. If you are on insurance panels, always make sure to check with them directly before offering a sliding scale.
If you have a cash-based practice, then it could be an option to offer a sliding scale. However, you also need to check with your state laws to see if there are any restrictions about offering sliding scales there.
Here are some items to take into consideration before offering a sliding scale:
1. What is your reason for offering a lower rate?
For me, I enjoy working with college students, grad students, and psychology interns. These individuals definitely cannot afford my full rate without significant hardship. By offering a rate that reflects their income (or debt as the case may be), therapy is much more accessible for them.
2. How many clients are you willing to see at a reduced rate?
Some people have a certain number of slots available at a reduced rate. For me, the majority of my clients are high income earners, so only a handful of clients pay less than my full rate.
3. How low of a rate are you willing to offer?
Do some math here. Consider how many clients you’ll be offering a reduced rate to and how much income you intent to earn. If you need some help calculating how much to charge, check out my video about setting your rate where I help you do the math.
4. How will you assess a potential client’s resources when offering a reduced rate?
We can only offer a reduced rate based on resources. I suggest you you offer a scale that directly corresponds to a potential client’s gross income. I’ve set mine up such that if a clients attended therapy weekly, 10% of their gross monthly income goes to counseling. This helps create a sense of balance so that those paying my highest rate are bought in with the same percentage of their income as those paying my lowest rate. Of course, I have an upper and lower cap on how high and low this goes, but it creates a system for determining how much to charge.

Пікірлер: 31

  • @wsutherland
    @wsutherland2 жыл бұрын

    I’m a dental student and considering implementing a sliding fee schedule. There aren’t many videos in my field that discuss this so thank you for sharing!

  • @josephmartelmusic
    @josephmartelmusic4 жыл бұрын

    Hey I really appreciate this video! I'm not a therapist (though an avid therapy-goer) but I'm looking to implement a sliding scale for another business I'm starting. This video was very helpful! Thanks!

  • @pbxh6740
    @pbxh67404 жыл бұрын

    I offer a sliding fee scale on two conditions: Someone is already seeing me and has problems with employment or insurance after they're established, or someone wants to see me and we're waiting for insurance to kick in. Personally, I think a multimillion dollar insurance company would have a hard time arguing that they meet the income guidelines for a reduced rate, LOL. The rate is based on the income of the payor, and my very lowest fee is the lowest that will still give me the basic income I want.

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    4 жыл бұрын

    That's an interesting strategy!

  • @Ravenccs1
    @Ravenccs13 жыл бұрын

    You are the FIRST person I have seen who has addressed the insurance issue! Well done!! Insurance fraud also includes NOT ensuring correct copays and deductibles are collected. Therapists often don't check with the insurance companies they have contracts with and assume that because others do sliding scales, they can too. This kind of information is USUALLY in the contract that you signed with them. It is very important to remember one must follow ethics, state laws, insurance contracts and to sometimes even call your liability insurance attorney before you even consider making most decisions - not make decisions based on what other therapists do.

  • @JorgeMendoza-zm7ev
    @JorgeMendoza-zm7ev4 жыл бұрын

    This is a great topic! I had never thought of the percentage idea you mentioned and I can see how this would help maintain boundaries. I think also having resources of nonprofit counseling agencies/referrals can help clients who financially can't afford private practice fees.

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    4 жыл бұрын

    Yes that's such a great point! It's so important to have referral resources for clients who may not be able to afford our rate.

  • @privatepracticeworkshop5045
    @privatepracticeworkshop50454 жыл бұрын

    This is such great information!

  • @sherrygreen5428
    @sherrygreen54284 жыл бұрын

    This is great information. I have been doing it all wrong. Thank you so much for your help.

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    4 жыл бұрын

    I'm glad you found it helpful!

  • @user-xs8wr2fd4i
    @user-xs8wr2fd4i Жыл бұрын

    Thank you! So helpful.

  • @bruceburleson8664
    @bruceburleson86642 жыл бұрын

    This is REALLY helpful!

  • @thedogshouterer
    @thedogshouterer Жыл бұрын

    I am a private tutor working with neurodivergent students and, with my recently increased fees, this is becoming a really sticky topic. I LOVE the percentage rate--this way the choice is mine rather than the weird, squishy "pay what you can afford." I also think that if someone is requesting sliding scale it is then reasonable to ask for basic proof, ie. front page of taxes. Anyone else's thoughts on proof? In my case I think I would also need to ask questions about tax filing too as some of my parents are split but both contribute to paying services.

  • @WarrenRichardson
    @WarrenRichardson3 ай бұрын

    Hi Dr Marie, really enjoyed this video. I'm currently seeing a psychotherapist that offers sliding-scale, and I did qualify but just from some initial emails and wasn't required to submit my income or related documents as you described. Does that mean it's purely "honor system" or I might need to show the math later to continue getting the lower / more affordable rate?

  • @CarlaDEllis
    @CarlaDEllis4 жыл бұрын

    Yes very helpful info! I love the song by way lol! May I ask where to find out if I qualify for offering a sliding scale? I am preparing for private practice in a couple of months. Thank you in advance :)

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    4 жыл бұрын

    The song 😅As far as finding out where you qualify, are you referring to your state jurisdiction or to insurance panels? As far as the state, I think you'd have to consult with your jurisdiction's laws directly. But I bet your local colleagues could likely point you in the right direction!

  • @CarlaDEllis

    @CarlaDEllis

    4 жыл бұрын

    Private Practice Skills okay thank you!

  • @juliaoverlinmslpccncc1982
    @juliaoverlinmslpccncc19824 жыл бұрын

    If I am OON w/ an insurance company would you say they still can have a say over whether I offer a sliding scale or not, or is it just if I am aligned and In-Network with an insurance company? Thank you in advance. This was alarming to learn, want to do things right.

  • @soraiasakkaidou1588
    @soraiasakkaidou15882 жыл бұрын

    I’m looking forward to being a home owner and have at the same time had home owners, company owners tell me they cant afford my services... ( because their company’s are running on a negative ) - But their still spending, living as per normal ( i feel its a system thing in their business and the messiness vs not having the resources )

  • @SpeechTS
    @SpeechTS2 жыл бұрын

    Do you have a video about offering a profit sharing program to clinicians you hire, do you have to be a corp? Can LLC do this? Can you offer profit sharing with independent contractors,

  • @rosiegarcia7562
    @rosiegarcia75624 жыл бұрын

    Love it

  • @bridgetnash638
    @bridgetnash6382 жыл бұрын

    Do you have a suggested breakdown of rates based on income? (i.e. if someone makes 100k/year you charge x, if someone makes 75k/year you charge y, if someone makes 50k/year you charge z?)

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    2 жыл бұрын

    Everyone does this differently, but I've personally set mine up so that if folks were to attend therapy weekly, it would amount to 10 percent of their income (within the allotted scale range). Hope this helps!

  • @bridgetnash638

    @bridgetnash638

    2 жыл бұрын

    @@PrivatePracticeSkills It does, thanks!

  • @i.e.presents638
    @i.e.presents6384 жыл бұрын

    I worked in a recovery treatment group where virtually every couple had 5 therapists between them. This is Silicon Valley, so who knows, but it seemed to me that most if not all were paying more in the neighborhood of 20-30%. Now the couples work was not weekly during the program, it it would be for years afterward in most cases, and both the individual work & group work was definitely weekly 50 or so session annually so a frequent situation was that they made a fair amount but the intensive nature of treatment took far more than they could manage. Or at least that is what some said and that made sense...any guesses which therapist ended up caving in and charging less? Yup, the one working with the wives and some couples work where they were priced out of working with the male therapists. In the end I felt ill used and so did the wives. It impacted the way we collaborated on cases at times. Never again. Having said all that, it FELT different because these were not stories, we knew for a fact they were spending nearly $2K monthly on therapy and these people were probably not making $200K annually. Heading out into the private practice world doing the same work will mean collaborating with several separate practices now and I have to admit this feels like a good reason to slide. I’m just no longer willing to be the sacrificial lamb.

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    4 жыл бұрын

    Yikes! Well that certainly would be an investment - $2,000 a month for a whole year?? I can see the issue there. But also, at least in my area, $50 a session would allow me to pay my overhead and that's it. Sounds like a situation where both clients and therapists are bound to be incredibly frustrated!

  • @Viorinx
    @Viorinx4 жыл бұрын

    Yes yes so much yes. You’ll lose out on clients if you don’t who are in need!

  • @PrivatePracticeSkills

    @PrivatePracticeSkills

    4 жыл бұрын

    Glad you agree!

  • @theawakenedheart8783

    @theawakenedheart8783

    4 жыл бұрын

    Such a great topic of discussion! I guess it’s important to know right from the start the target clients you’ll be catering for - goes right back to branding and then policies for having some room to wiggle. Thank you again 😊

  • @laloarr
    @laloarr3 жыл бұрын

    There needs to be a better compromise. Telling the person who's making fair money and seeking therapy to get their shit together and "budget" to afford your attention sounds pretty counterintuitive

  • @johnfudala128
    @johnfudala1283 жыл бұрын

    Give me the short answer.