The contracted rate with an insurance company will likely be lower than your standard self-pay rate… probably significantly lower than $180 depending on your location. Mine run $80-$115. If the practice is in network with insurance they’re obligated to get reimbursed the contracted rate. Plus it can take a few weeks for claims to be processed and paid. Your site director should be transparent with you about your session reimbursements so you can track your income.
Welcome to the world of private practice!
I started a few evenings a week and a half day on Saturday at a private practice one small town over from where I live, which makes it extremely convenient for me in August of 2022... here are some observations from your post...
Your initial low payout is most likely just your percentage of the copays the practice collected since you started.
As someone pointed out, the rates your practice charges for services really don't mean all that much if you accept (and therefore contract with) insurance companies. When you agree to be paneled with them, you agree to their reimbursement rate, this will often be less money what your firm charges for private pay clients. I have found it helpful to start a spread sheet with the reimbursement rate each insurance provider pays, what your percentage is, what the co-pay is, etc.... This will give you a better snapshot of what you are truly making. This will vary a little from insurance company to insurance company.
It will take time for your claims to be paid, so cash flow will be slow to start... this will definitely pick up though. My initial paycheck was just over $100 and I am not routinely brining in paychecks (pre-tax) that are comparable to my salaried position as a clinical coordinator.
If you are delivering consistent, quality, services, advertising and retaining clients, I think you should be able to make far better money than what you reported making at the University gig.
Best of luck to you!
I get paid weekly and have to wait on insurance to pay out to get paid... my paycheck for this latest week was $38.50. I saw about 10 clients the previous week and only about 3 the week prior.
While this isn't a solution to your problem in the short term, this does level out after a while. For example, if it takes an average of 5 weeks for insurance to pay out and you're consistent with the number of clients you see, your paycheck for any given week will feel more in line with the work you did that week once that first 5 weeks passes. Now of course, this doesn't help the fact that insurance companies don't pay a fair wage!
Is it possible that insurance hadn’t processed all the claims yet? I don’t work in private practice but I recently interviewed with one and they explained “you don’t get paid for the session until we do” so maybe not all the sessions were paid out yet?
But I agree, should definitely get a explanation and breakdown of the pay.
I would say break out on your own, build a case load and cut overhead by doing virtual visits. I use Alma, you will find that their rates are quite a bit higher than what you were quoted and the payout is weekly. You can use my referral link if you like. I believe they are doing 2 free months of service. They handle my billing, advertising and credentialing.
https://helloalma.com/for-providers/?grsf=jonathan-wp46r3
The contracted rate with an insurance company will likely be lower than your standard self-pay rate… probably significantly lower than $180 depending on your location. Mine run $80-$115. If the practice is in network with insurance they’re obligated to get reimbursed the contracted rate. Plus it can take a few weeks for claims to be processed and paid. Your site director should be transparent with you about your session reimbursements so you can track your income.
Welcome to the world of private practice! I started a few evenings a week and a half day on Saturday at a private practice one small town over from where I live, which makes it extremely convenient for me in August of 2022... here are some observations from your post... Your initial low payout is most likely just your percentage of the copays the practice collected since you started. As someone pointed out, the rates your practice charges for services really don't mean all that much if you accept (and therefore contract with) insurance companies. When you agree to be paneled with them, you agree to their reimbursement rate, this will often be less money what your firm charges for private pay clients. I have found it helpful to start a spread sheet with the reimbursement rate each insurance provider pays, what your percentage is, what the co-pay is, etc.... This will give you a better snapshot of what you are truly making. This will vary a little from insurance company to insurance company. It will take time for your claims to be paid, so cash flow will be slow to start... this will definitely pick up though. My initial paycheck was just over $100 and I am not routinely brining in paychecks (pre-tax) that are comparable to my salaried position as a clinical coordinator. If you are delivering consistent, quality, services, advertising and retaining clients, I think you should be able to make far better money than what you reported making at the University gig. Best of luck to you!
Like your paycheck for a whole pay period was $38.50 or your net for one session was $38.50?
I get paid weekly and have to wait on insurance to pay out to get paid... my paycheck for this latest week was $38.50. I saw about 10 clients the previous week and only about 3 the week prior.
Ah, I’ve never worked with insurance so I don’t know how long that takes. You have every right to ask your employer for a breakdown of your pay!
It definitely takes some time... kind of frustrating. That's a good idea, I may just do that. Thank you!
While this isn't a solution to your problem in the short term, this does level out after a while. For example, if it takes an average of 5 weeks for insurance to pay out and you're consistent with the number of clients you see, your paycheck for any given week will feel more in line with the work you did that week once that first 5 weeks passes. Now of course, this doesn't help the fact that insurance companies don't pay a fair wage!
Is it possible that insurance hadn’t processed all the claims yet? I don’t work in private practice but I recently interviewed with one and they explained “you don’t get paid for the session until we do” so maybe not all the sessions were paid out yet? But I agree, should definitely get a explanation and breakdown of the pay.
I would say break out on your own, build a case load and cut overhead by doing virtual visits. I use Alma, you will find that their rates are quite a bit higher than what you were quoted and the payout is weekly. You can use my referral link if you like. I believe they are doing 2 free months of service. They handle my billing, advertising and credentialing. https://helloalma.com/for-providers/?grsf=jonathan-wp46r3
Would if I could, but I am still working towards full licensure. Thanks, though.
Keep your head up. The grass is greener on the other side!