Negotiating Fees with Patients
December 17th, 2009 by Jim Du MolinFor many doctors, the ultimate test of self-confidence comes when a patient questions your fees. You may feel that they are questioning your personal and professional integrity, your technical competence, and/or the value of your services.
You have invested years of education and financial sacrifice to master your craft. Yet, invariably, you continue to encounter patients who question your right to be adequately compensated.
In addition, the patient is making you feel that you are overpriced for the marketplace and can’t compete. You worry about losing the time you’ve invested in preparing the treatment plan, if the patient goes to another practice that’s willing to cut fees to compete.
While all of these thoughts and emotions may come to mind, the reality of the situation may be entirely different. In reality, the patient is setting the stage to negotiate. The reality is that the patient hasn’t the slightest clue of what it costs you to provide the treatment. When a patient makes this type of statement, she is really making her opening move to negotiate a lower fee. She is “bottom fishing” for the best deal.
The first thing you must understand is that caving in and cutting your fee is never acceptable. Cutting your fee is cutting your throat. It is tantamount to telling the patient that your craftsmanship is overpriced and your fees are negotiable.
On top of that insult, you are adding injury to the basic economics of managing your practice. It costs money to deliver quality health care. Inadequate compensation can only lead to a reduction in qualified support staff, the use of lesser materials, and reliance on inadequate or obsolete equipment.
Your best choice is to play the game, understanding that you and the patient are really negotiating on the quality of the patient’s health care. You must structure the negotiation so that both you and the patient can win. Remember that in the psychology of negotiating, the person who blinks first often loses. You just have to say that you feel good about your fees and that they are correctly calculated. At this point, eighty percent of the patients will stop negotiating and accept treatment.
It is rare that a patient will persist in questioning your fees. The implication to the patient is that if you want your treatment performed with lesser quality materials or by a less experienced doctor, you are welcome to go elsewhere. In any case, you have made the statement in such a way as to reinforce your personal and professional integrity without embarrassing the patient.
In developing financial strategies for our consulting clients we are often asked, “What should my fees be?”
Our answer is invariably, “Whatever you feel confident in charging.” There is essentially no limit to what you can charge for your services. (Except for insurance fee schedules, of course, but that’s another issue entirely…) The basic premise is that you are confident that your fees are representative of the quality of the materials you use and your experience in performing the treatment. The key word is confident. Any lack of confidence or hesitation will be detected by the patient and exploited in the negotiation.
One of the most successful doctors we know accepts no insurance and requires all fees be paid in full prior to beginning treatment. The cost to a patient for a single gold crown ranges from $950 to $1,250.
He presents his treatment plan by saying, “My fee for performing this treatment is $950. I will attach a copy of the lab bill detailing the materials and their preparation cost to your bill.” Now, in case you missed it, the lab bill was separate and added to his fee for the crown. His case acceptance level is in the 90% range.
Patients immediately perceive that this doctor knows his worth. I must also add that every stage of the patient’s interaction with the doctor’s staff, facility and post-treatment care are of the very highest quality. This high level of quality supports the 90% acceptance level and reinforces the sense of value the patient perceives in the doctor’s capability to deliver the treatment.
The best confidence-builder to help you feel comfortable with your fees is very simple. Just remember that quality treatment must be supported by commensurate fees.















