Raising Your Prices In A Health Practice

Raising Your Prices In A Health Practice

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Many health practitioners feel anxious about telling their patients that they’re going to raise the price of a consultation, and yet it’s inevitable that you will have raise prices at some time … (unless you go out of business first)

The big worry is … “will I lose patients if I put up my prices?”

In this video, Troy Parsons from The Hive explains that raising prices is one of the things that will allow you to invest back into the practice and then continue to build the “VALUE” in what you offer.

Find out how many patients you could actually afford to lose before a price rise will have a negative impact on your practice income – you might be surprised to learn that you could make the same amount of money even if you do lose a few patients. Often times the people who do leave are the ones who are possibly better served by another practitioner anyway.

Why Should You Raise Your Prices?

Understandably there’s a huge amount of anxiety about putting up prices. No doubt you will be worried that if you put your prices up, you will lose patients.

As hard as it is, don’t be worried about putting up your prices.  The cost of running your business increases each year with expenses on equipment, training, staff and everything else going up.

Your patients know this too!

The cost of living goes up steadily and they expect prices to go up to some extent. As long as you provide a quality service and your patients can see the value they are receiving (be that in new modern equipment and practice space or a new water cooler in the reception room) they will be fine with paying the appropriate amount based on the VALUE you provide.

Raising your rates is something that you MUST do regularly.  By doing so you will be able to make sure that you are getting what you’re worth and you will also ensure that your practice grows.

It is important to give patients adequate notice that your rates will be going up.  This will give them time for it to sink in. For patients who aren’t happy – you may lose some and refer them on elsewhere.  The ones who stay know the value you offer them.

Look At This Simple Pricing Formula

Say you have 100 patients a month paying you £50 per session. You earn £5,000 each month. What would happen if you raised your rate to £60?  Say you lose a few patients, but the ones that stay are now paying £60 per session. You’re still making around the same or more for less work.

It’s about valuing yourself as a practitioner.  You deserve to be paid for the quality of the care and service that you offer.

When thinking about raising your rates and how much to raise them by, factor in

  • the VALUE to the patient
  • your training
  • your experience
  • your knowledge, and
  • what your equipment is worth

Don’t Make A HUGE Price Increase All At Once

You wouldn’t jump from £50 to £90 in one go. A lot of patients would probably walk. (Unless it’s already been 10 years since you last put them up!)

So in this case – the old adage of “slow and steady wins the race” rings true.  Raise your rates incrementally over time – £5 or £10 yearly for example. Most patients can handle a slight increase and they’ll be more likely to stick around.

Believe in the VALUE that you offer.

There are various ways to improve yourself, your staff and your practice that can justify increasing your rates.  Investing in yourself and your practice is the obvious one and one that your patients can see. Maybe you will be offering a new service, or extending hours, or home visits. Whatever it may be, you should feel justified that raising your rates is a reflection of the service that you offer.

Summarising Raising Your Prices

  • When you raise your prices – it allows you to continue to deliver value and raise the bar for your practice and the service you provide.
  • As yourself… What are 5 reasons you are worth that £5 or £10 increase?
  • Review your rates on a regular basis
  • Make sure you are reflecting the value you deliver
  • Expenses go up every year – and prices should go up accordingly
  • Patients understand that this is a part of a sustainable practice
  • Invest back into your practice – your patients can see the value you are adding