Should You Accept Private Pay or Insurance
Before you hang your shingle as a private therapy practice, one of the first questions you’ll need to ask and answer is this one: Should I go with insurance or a self-pay model?
Even after you’ve been in practice for a while, you may find yourself revisiting this question as insurance rates or even local demographics change. For example, if a large employer in your area closes down, it can negatively affect how many people have access to insurance and therefore, your insurance-based private practice. It would make better sense to set up a self-pay strategy so that you’re able to anticipate and accommodate cash paying clients.
But on the positive side of that example, a large employer can decide to move to your area and set up shop. They’ll hire and provide insurance to a group of employees to whom you can market your private practice. In this case, it would be smart to accept insurance, specifically their insurance.
As you can see, there isn’t a one-size-fits-all payment model for private practice. In this post, we’ll tackle the top reasons to choose either self-pay or insurance for your private practice
. Also remember that you’re free to do both, as well, however most practices lean more toward one or the other.