How to Take Home 6 Figures in Private Practice
When you started your private practice, what goals did you have in mind?
Maybe you were hoping to achieve the independence that comes with running your own business, or you wanted to specialize in one particular area of practice. No matter what you had in mind, your projected income was likely a big part of your expectations.
According to ZipRecruiter, the prescribing therapists in private practice in the United States earn between $50k-$300k annually. Although earning potential will vary depending on the hours you work, your location, and the cost of living, taking home a six-figure salary while operating a private practice is achievable.
As medical billers, we often see clients who are trying to grow their business and increase their take-home pay. Here’re a few lessons we’ve learned from successful, six-figure private practice therapists.
They prioritize billable work
Can you manage all the coding services, payment tracking, financial and revenue reports while managing your busy schedule? Maybe. But what would your revenue look like if you spent more time on billable work?
Prioritize billable time and tasks that only you can do, and consider outsourcing other business management and accounting tasks.
They do the math
Successful private practice therapists plan ahead by staying on top of their current revenue and make changes when needed.
To earn six figures in private practice, divide your revenue goal by your number of annual work weeks. Then, divide it again by your ideal number of weekly clients. This will determine what you should earn per session.
In most locations, as a prescriber, 20 sessions per week is sufficient for a therapist to break the $200K mark. If your sessions are 50 minutes each, you can have 10 minutes between appointments for a break, for charting, or as a buffer for a session that goes longer.
If you’re outsourcing your billing, try to keep your expense below 10% per month to maintain a long term sustainable relationship.
They’re diligent about filing claims and collecting payments
When you have organized records, you can submit claims quickly and receive payments faster. Not allowing claims and outstanding balances to linger allows deeper insight into the state of your finances.
Hiring a professional medical biller will ensure billing and coding accuracy and timely submissions. At MindEase Billing, we know the importance of having little to no errors when it comes to subjects that include cash outflows, inflows, and essential documents. We have a team of experts with a vast knowledge of the industry and best practices.
Conclusion
Making time to grow your practice can be tough. Whether you’re just starting out, or your practice isn’t accomplishing what you’d hoped, smart financial decisions can help you get where you want to be.
At MindEase, we’ve supported dozens of mental health practitioners who make the leap to private practice successfully. If you’re in private practice and not living the life you love, we can help you do the math, find balance, and achieve consistent positive cash flow.
We’ve prepared this short download to help you see clearly how you can take home 6 figures in private practice. Book a discovery call today.
