The State of Private Practice Finances in 2024
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- Опубликовано: 6 июн 2024
- The State of Private Practice Finances in 2024
Just the podcast-length version this week, because it was so action-packed :)
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The folks at Heard conducted a survey assessing the state of finances for therapists in private practice. I got to sit down with Michael Fulwiler to go over the results. Some of them may surprise you! The report covers topics such as: how much do private practice therapists earn, what are average insurance reimbursement rates, did therapists raise their rates? And so much more.
A huge THANK you to Heard for conducting this survey and to Michael for taking the time to share the results. We touched on lots of stuff, but you can find links to everything we referenced below to follow along:
Download the Heard 2024 Financial Report:
www.joinheard.com/resources/d...
Free Heard webinar on June 14th at 9:00 am Pacific:
"How to Set Your Therapy Practice Up for Year-Round Financial Success"
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If you can’t make that time, you’ll be sent a replay afterward
Check out Heard for a free 15-minute consultation:
bit.ly/3rNmDJx
(this is an affiliate link)
Quarterly Taxes Interview with Andrew Riesen from Heard:
• What you Need to Know ...
S Corp Interview with Andrew Riesen from Heard:
• Heard Tax Expert Break...
Playlist of Prior Videos with Heard:
• Ask the Tax Expert abo...
LINKS
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This video is geared toward 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.
I’ve been in private practice 30 years. My geographic region of practice is a rural/suburban area that is insurance network dominated. The stark reality of private practice finances is disenchanting to say the least. I went to the federal inflation calculation website and entered in the best insurance payer reimbursement rate from my first year of practice of 1993. I was shocked when I learned my projected in network reimbursement rate, if commensurate with inflation, would be twice my current network reimbursement. This means in an average 3% per year cost of living inflation the insurance reimbursement has increased 1.7% per year. To maintain the same standard of living as my first year of practice I need to double my number of sessions per week. So if I saw 15 clients per week in 1993, I now need to see 30 clients per week. This is a painful reality
Thanks so much for having us on!
Aren't we not allowed to share insurance rates per their contract? So that hinders our ability to determine fair rates.
My gross profit is over 6 figures but I scheduled 25-29 clients a week taking insurance. I’m reducing to 22 scheduled.
I cut my teeth in CMH and this pace is sustainable for me but I want more free time.
I also want to add I’m in a poor state and through headway, Alma, some private pay, and my own contracts it averages out to 105-107/53 minutes.
Thanks for this, Dr. Fang. Is there any chance on gaining some nuance? I’m thinking those who work in telehealth vs in-person. Those who work with insurance or just private pay. I appreciate it nonetheless.
Thank you so much for the information, it was very insightful. 😃
This video is so useful! Thank you!
So glad to hear it!
Thanks for covering about the finances part about start your own private practice
Very Helpful!
I also am kind of confused an I’ll have to read the findings closer…
because I took home over 80,000k (gross around 120) and I only worked 30 hours call it at my max accounting for notes and things like that… I don’t have to work 40 hour work week to be six figures. I think that that’s important to note and reflect on too. Most people don’t get to work 30 hours a week
Also I of course think we should be paid more and all that good stuff
What is the average hourly reimbursement?
I’m solo. S Corp. Hybrid (until pregnancy now virtual only) prob 95% caseload is insurbace
I was seeing 23 ish clients a week
My tax lady said my gross was around $120k
Net take home was $85k+
Now I’m part time and have 9-12(every other) a week so call it 40 a month. We will see what I make but it should be half
Reimbursement rates are anywhere from 100-140 for a 90837.
@@its_jess4321 is this with a phd
As a 25 year old adult who doesn’t pay all my bills yet, 100k in profit both seems like a lot, and not a lot. Granted, only a small fraction of professionals are making that. But I mean, it’s WAY more than the national average income and teachers in my area make 40k. However, it’s hard to know how much paying one’s own benefits and taxes cuts into that number. Is it profit before or after taxes? Ultimately, it seems like a decent amount of $$, if someone lives very frugally and doesn’t have a big family … unless you factor in the opportunity costs to even start. I haven’t started my masters so I’m staring down the barrel of five or six years before even being licensed. Unfortunately, this just doesn’t seem like a good idea anymore . I’m a little heartbroken but I think I can explore benign of service to people through volunteering and community programs in my free time.
If you live in a high cost of living area, you can make good money, enough to have a child or two and take time off.
My general advice when thinking about the finances is... whatever numbers you hear, divide by 2. So, $200 an hour is actually $100 (after taxes, expenses, etc.). Plus you're not seeing 40 people a week.
@@ohmynoche thank you for sharing this, this gives me some hope!!!
Do you thinks it’s still worth pursuing for a 25(f) who would like a family given how long it takes to get started?
@@our.secret1130 My personal opinion is that for private practice it’s best to get a Masters degree, because it only takes 2 years (sometimes 3). Then it takes another 2-3 years to get your hours for licensure. So soup to nuts it’s about 5 years to get the license, and that’s when you can start earning a lot more.
I started my grad program at 27, graduated at 29. Took 2.5 years getting my hours for licensure making 50-60k a year. Got licensed at 31, and by 32 was making good money.
Plus, with a masters degree, you will have way less student loans than if you get a doctoral degree. That effectively raises your earnings.
Feel free to ask more!
@@our.secret1130 and regarding starting a family, I guess it depends on what age you want to have children by, and where you want to be in your career when you do it.
Personally I wanted to have my license before having kids, both for the financial security and having the ordeal of getting licensed behind me.
@ohmynoche I would also like to know!
You can’t increase rates if it’s from insuebace and actually get it to change. However we do need to reflect to insurnace we are “billing” a higher rate than what they’re paying because they don’t budge
So I changed my 90837 $150 to $200