Most physicians enter medicine with one goal in mind—helping people. We spend over a decade in training, mastering our craft, and pouring ourselves into patient care. But when it comes to running a business—especially a cash-based private practice—we find ourselves facing questions we were never trained to answer.
How do you figure out what’s a fair pricing schedule?
One of the biggest?
Too low, and you risk burnout while struggling to keep your doors open. Too high, and you worry about scaring away potential patients.
The pricing dilemma is one that stops many brilliant, mission-driven physicians in their tracks. If you’ve ever felt stuck trying to determine what to charge, this guide is for you.
Why Pricing Feels So Difficult for Physicians
Imagine this:
A physician spends 15 years in school and residency, dedicating their life to medicine. They finally open their own practice, excited to offer personalized, high-quality care on their terms.
But then reality hits.
Patients question their prices. Friends and family ask, “Why would anyone pay cash when they can just use insurance?” The physician starts to wonder if they should lower their rates.
Fear creeps in:
- Will patients actually pay this much?
- Am I being greedy for charging more than insurance-based practices?
- What if my prices make my services inaccessible?
This inner conflict keeps many physicians undercharging, not realizing that undervaluing themselves can hurt both their business and their patients.
Here’s the truth:
A fair pricing schedule isn’t about charging the lowest possible amount. It’s about creating a sustainable practice that allows you to provide exceptional care.
Let’s break down how to determine fair pricing in a way that works for both you and your patients.
Step 1: Define the True Value of Your Services
Most physicians make the mistake of comparing their cash-pay pricing to insurance reimbursement rates.
That’s the wrong approach.
Insurance-based models rely on high volume and low margins. That’s why many traditional practices force physicians to see 30+ patients a day, leaving them exhausted and limiting their ability to provide individualized care.
Your cash-based practice offers a different level of service.
Ask yourself:
- Do patients get more time with you?
- Do they receive more personalized care?
- Do they get easier access to you (same-day visits, direct messaging, etc.)?
- Are they avoiding the hassle of insurance approvals and denials?
Every one of these factors adds value. And value should be reflected in your pricing.
A 60-minute visit in a traditional insurance-based practice might get reimbursed at $150 by an insurance company.
But in your cash-based practice, that same 60-minute visit might include:
- Unrushed, personalized care
- A focus on prevention, not just treatment
- Follow-up access via text or email
- A more comfortable, stress-free experience
This level of care is not the same as an assembly-line medical visit—and it shouldn’t be priced like one.
Instead of looking at insurance rates, look at what patients actually value.
Step 2: Analyze Market Data Without Copying Competitors
Many physicians assume they should price-match other cash-based practices in their area.
But here’s the problem:
- Not all cash practices are the same. Your model, expertise, and patient experience may be completely different from a competitor’s.
- You don’t know their numbers. If another practice is charging $100 per visit, that doesn’t mean they’re profitable. They may be barely surviving.
Instead of blindly copying others, do this:
- Look at the pricing range for similar cash-based practices in your area.
- Consider your expertise. Do you have unique skills, certifications, or experience that justify higher pricing?
- Factor in your service model. If your practice offers longer visits, direct messaging, or specialty care, your pricing should reflect that.
Step 3: Reverse Engineer Your Revenue Goals
Fair pricing isn’t just about what patients are willing to pay—it’s also about what you need to keep your practice sustainable.
Ask yourself:
- How much do you need to earn annually to sustain your practice and personal life?
- How many patients can you realistically see per week while maintaining quality care?
- What are your fixed costs (rent, staff, supplies, etc.)?
For example:
Let’s say your goal is to earn $300,000 per year while working 4 days a week and seeing 15 patients per day (to maintain quality care).
- That’s 60 patients per week or 240 patients per month.
- To hit $300,000 in revenue, you need to generate $25,000 per month.
- If you divide that by 240 patients per month, you would need to charge at least $105 per visit.
But this is just breaking even. It doesn’t account for profit, reinvestment, or unexpected costs.
Most successful cash-based practices add a 20-30% buffer to ensure financial stability.
That means instead of $105 per visit, your fair pricing might be closer to $130-$150 per visit to create a thriving, sustainable practice.
Step 4: Test and Adjust Your Pricing
Pricing is not set in stone.
Start with a pricing model that aligns with your value and revenue goals. Then, monitor:
- Patient retention and feedback – Are people comfortable paying for your services? Do they see the value?
- Financial health – Are you meeting revenue goals while maintaining a healthy work-life balance?
- Market demand – If you’re consistently fully booked, your pricing may be too low. If you’re struggling to attract patients, your messaging or pricing might need an adjustment.
A great approach is to start with mid-range pricing and gradually increase as demand grows. Many physicians start lower than their true value, then raise rates once they build a patient base and gain confidence.
Step 5: Communicate Your Value, Not Just Your Price
One of the biggest pricing mistakes cash-based physicians make is focusing only on cost instead of value.
Patients don’t just buy medical services. They buy:
- Better health
- More time
- A personalized experience
- Peace of mind
Instead of saying:
“My visit costs $200.”
Communicate it like this:
“For $200, you get a one-hour appointment, unlimited messaging for follow-up questions, and a comprehensive plan tailored to your health needs. No rushed visits. No insurance headaches. Just high-quality, personalized care.”
When people understand the true value of what you offer, pricing becomes less of an obstacle.
Final Thoughts: Fair Pricing is About Sustainability, Not Just Affordability
Setting a fair pricing schedule for your cash-based practice isn’t about being the cheapest option. It’s about:
- Delivering high-value care
- Creating a sustainable business model
- Ensuring long-term financial health
If you undercharge, you risk burnout, financial stress, and limited growth.
If you price fairly, you create a thriving practice that allows you to serve more patients while maintaining your own well-being.
Physician entrepreneurs—your pricing isn’t just a number. It’s the foundation of a business that supports both you and your patients.
Charge accordingly.
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