Many “fee schedules” are based on Medicare. I have heard that 150% of Medicare allowable is the going rate. That may increase the revenue generated from insurances but it hurts the self-pay patient and may price you out of the market for the self-pay patient or the patient who has a huge deductible.

We must be mindful of remaining viable in our respective markets. I try to charge similar rates to those offices around me.

An old DO had a cash only practice a few miles from where I am located. He charged $25 per visit, kept no records, had no staff, billed no insurances. You walked in, looked around and when everyone else who was there when you walked in was gone, it’s your turn. His patients loved him. No one would have ever considered suing him. Life was straight forward. He retired in January 2006; his absence may be one of the contributing factors to my success. His business model showed me that in the right environment and circumstances a cash practice is viable.

I am entirely too aware of the litigious nature of people today to try anything without record keeping, though!