by Ray Foxworth, D.C., FICC •
President & Founder, ChiroHealthUSA •
Know Your Demographic
Before setting fees, understand your patient demographic. EHR software can help analyze patient data, including age, gender, location, and insurance coverage. This data is crucial in setting appropriate pricing and ensuring your services align with your community’s needs. You can also find the average household income by zip code in your state by going to: incomebyzipcode.com.
Analyzing Costs
Understanding your costs is essential when setting fees. Knowing your break-even point ensures your fees cover expenses and set you up for profitability. Use this cost calculator to determine your baseline.
Monitoring and Adjusting Your Pricing Strategy
Pricing strategies should evolve. Regularly review and update your fee schedule to reflect cost changes, inflation, and market trends. This proactive approach helps maintain financial stability and ensures you remain competitive. Many insurers adjust payments annually, but not all. Set up a calendar reminder to update your fees by calling the carriers you work with.
Updating Your Fees – Are You Charging Market Value?
Chiropractors reluctant to raise their fees could end up sinking their practices. Here’s how occasional increases can benefit everyone.
Chiropractic’s market value is set the same way as any other business: by the law of supply and demand. It’s one law that can’t be repealed; a fact that can be hard to accept for chiropractors who don’t want to inconvenience or alienate their patients with higher prices.
Here’s another hard fact: Overhead in a typical practice can average 50%. Those reluctant to update their fees to reflect market value must accept that ultimately, this means falling financially behind their competition.
That’s not a position that benefits a practice or its patients. Inflation continually raises the cost of everything a chiropractor needs, making smart fee-setting even more essential.
Are you hesitant to raise your fees? Don’t forget how budget-friendly chiropractic remains compared to standard medical treatments, surgeries, and drug regimens, which continue to climb in cost.
Those who update their fees are more likely to stay competitive and afford what they need to function. This isn’t just a smart move in the present but also a safeguard for the future.
Market Value in Your Local Area
Understanding how broader market value affects your fees is only half the process. Knowing the local market value for chiropractic is the other. Setting fees based on Fair Market Value (FMV) ensures compliance with healthcare regulations. Resources like ChiroCode.com and FairHealthConsumer.org help determine FMV based on zip code and CPT codes.
Review Provider Contracts
Have you signed contracts for less than your cost to deliver care? Review your agreements carefully to ensure that reimbursements align with your actual costs. If a payer underpays but is a top referral source, consider how it might still fit into your business strategy.
Communicating Your Value
Be transparent with patients about your pricing and the value you provide. Use:
- Testimonials and case studies to highlight success stories.
- Formal financial report of findings to outline treatment costs and options.
Profitable Discount Strategy
A Discount Medical Plan Organization (DMPO) can help patients access affordable care while maintaining compliance. Look for a DMPO that lets you set your own rates to ensure continued profitability.
Bottom Line
Quality care costs money to provide, and that money comes from fees. Keep yours in line with the market (and inflation) to maintain the good work your practice does. As you elevate your fees to match the market, ChiroHealthUSA is here to help you keep care affordable for your patients while ensuring your practice remains profitable.
Rising healthcare costs affect both chiropractors and their patients. A well-planned pricing strategy, adherence to accurate billing practices, and compliance with insurance guidelines can help ensure long-term success. By setting appropriate fees, staying compliant, and offering value-driven services, chiropractic practices can thrive in an increasingly competitive market.
Need Help? Download our guide to a Profitable Discount Strategy for your practice.
▶︎ Need Help? Download our guide to a Profitable Discount Strategy for your practice.
