My limited clinical work is managed by staff. There is an overly harsh no show fee policy. Two consecutive missed appointments and you are out. We send a termination letter with a list of local providers, to avoid patient abandonment claims.
I would suggest that:
1) People who are motivated show up.
2) If I had to guess, you are not really strict on any form of "no show" fees.
3) While excusing behavior feels nice, it is bad for the patient. The analysts have a long line of literature about how providers should not indulge patients. If you're curious, look up psychoanalytic abstinence.
4) Payment is one aspect of motivation. If you charge a no show fee, it positively reinforces their attendance. Example:
a. No "no show" fee scenario. I'm in a bad mood. If I go to my therapist, I have to drive there, think about what I need to discuss, pay her $25 copay, deal with my feelings, be held accountable for any homework I didn't do, etc. But if I just cancel, I save $25, avoid some negative feelings, but can say that I am in therapy, if only to myself.
b. Active "no show" fee: I'm in a bad mood. There are all of the aforementioned negatives to going to my therapist. However, I still have to pay her $25 if I don't come, so it really doesn't matter from a financial POV. Do I go? Drop out? It's only $25.
5) Sickness, children, abnormal schedules are not excuses for any recurrent behavior. It's like when someone says they can't control their rage, but behave appropriately when they are at their job, or around cops. If someone wants to show up, they can at least do a telephone based session.