This time of the year is a good time to think about converting to either all cash or more cash in your practice. You see, here's what usually happens. People start out in the profession and then they go into private practice then say, "Well, I'm not on any insurance panel so I got to be cash. They have cash and I usually charge a little price." Then after a while, they say, "Wow, I'm turning a lot of people away because I don't have insurance." So, they join a bunch of insurance panels.
Then after a while, they say, "Well, people that are cash practitioners are making a lot more than I am. I'm getting paid an average of $70 a session. They're getting paid an average of $120 a session. I should go more toward cash." Eventually, you have a lot of people go to all cash or mostly cash. I want to talk to you about how to do that. First of all, I would suggest that you look at your low payers. Any EAPs that are low payers, any insurance companies that are low payers and decide which ones you're going to get rid off, which ones you're going to kick to the curb.
Personally, I feel like in a lot of areas in the United States, $70 is about the lowest I go. If an insurance company or EAP is paying you less than $70 and you have adequate new patient flow, I'd probably get rid of those people and convert them to cash. If you're only getting $70, it doesn't take much to convert them to cash to getting exactly the same amount. Right now, look at all your low payers. You know who they are and make a decision.
If they're not sending you too many new patients or if you think you can convert those patients to patients that pay cash, then I would go ahead and send the letter to that insurance company and say, "We're done working with you. We want off the panel." Then, go ahead and treat the patients you're already treating, of course, because you've made a contract with them, but then you're off that panel and move to cash. The faster you get to all cash, the happier you're going to be. This is David Kats. Thanks for listening.
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