What is the outpatient psychiatric hourly rate for outpatient work?

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Zyprexa100

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I was recently offered $275 and $265 in the Midwest. Made me question my previous hourly reimbursement as I have been paid less. Looking forward to hearing your numbers.

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Is this locums? Those sound like private practice rates from commercial insurance that you'd have to deduct all overhead from.

Best I've heard for outpatient hourly is $225/hr for 1099. Typical employed salary is 250-300, so hourly would be in the 125-150 range, plus benefits, malpractice, no overhead etc.
 
Is this locums? Those sound like private practice rates from commercial insurance that you'd have to deduct all overhead from.

Best I've heard for outpatient hourly is $225/hr for 1099. Typical employed salary is 250-300, so hourly would be in the 125-150 range, plus benefits, malpractice, no overhead etc.
These are 1099 rates for outpatient and some partial programs. Not locums.
 
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These are 1099 rates for outpatient and some partial programs. Not locums.
If the workload of the programs is reasonable these are good numbers. If you work 30 hours a week at 265 and work 46 weeks a year it's north of $360K.
 
I was recently offered $275 and $265 in the Midwest. Made me question my previous hourly reimbursement as I have been paid less. Looking forward to hearing your numbers.
Midwest good metro or midwest cornfield?
 
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If you are paid that for each hour you are there (not only for time spent in face to face care) then that seems like a quite good rate. I don't know the going rate but agree with the above, working backwards from a median area salary can give you a sense of what should be typical.
 
Those are very good rates but I would expect you're seeing 3-4 patients/hour...if they're paying you that for 2 patients/hour (without taking any additional overhead), that sounds too good to be true. I'd get more details because the math wouldn't add up unless they've negotiated some exceptional rates with insurance.
 
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Yeah that sounds amazing, in SE my current hourly rate is about 144 which equates to 300k salary for full time work. I mean 275 is ridiculously good, to the point that I wonder if the location is very undesireable and they just need someone badly, they want you to take 10 NPs under you, or they're scheduling 40 people a day on your schedule. I would wonder what the catch is.
 
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265/hr is an average rate for 3 follow ups per hour, that means you’re getting paid 88 per 99214 which is average/decent. 265/2 follow ups per hour is extremely good, the devil is in the details.
 
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3-4 patients per hour. No NP. In the middle of nowhere. Big organizations with money but can not find people to hire.
 
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In the middle of nowhere. Big organizations with money but can not find people to hire.
makes sense, ive seen absurd rates for midwest jobs in less than desireable locations. Back when I initiatially started looking for jobs a while ago, this place in minnesota was offering around 450k a year and around 45 PTO days off with half day friday. But it was a tiny town in minnesota and didnt sound super appealing to live there.
 
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makes sense, ive seen absurd rates for midwest jobs in less than desireable locations. Back when I initiatially started looking for jobs a while ago, this place in minnesota was offering around 450k a year and around 45 PTO days off with half day friday. But it was a tiny town in minnesota and didnt sound super appealing to live there.

Out of curiosity, what town in MN?
 
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3-4 patients per hour. No NP. In the middle of nowhere. Big organizations with money but can not find people to hire.
3 is a lot different than 4 per hour. Unless it's worried well or you have great support staff this job will suck
 
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Out of curiosity, what town in MN?
Totally forgot since it was a long long time ago, back when I was initially looking for my first attending job. I talked to the recruiter about it, but when i googled the weather I quickly gave up on it, lol
 
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Totally forgot since it was a long long time ago, back when I was initially looking for my first attending job. I talked to the recruiter about it, but when i googled the weather I quickly gave up on it, lol

No worries, and yeah, the weather can be killer, though I would say it depends on how far north and west.
 
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3-4 patients per hour. No NP. In the middle of nowhere. Big organizations with money but can not find people to hire.
That's reasonable pay for the work, too many patients in a bad place is not ideal for me, but I can see someone wanting to grind that out to pay off loans when they are young or something akin to that. If you happen to want to live in a frozen tundra, then it would certainly be something to consider.
 
You should be seeing 2 follow-up patients an hour. I do not get the OP's job description. There is so much more to actually providing patient care than talking to the patient. You can't do 4. Even 3 is going to burn you out. There are limits to how fast one can type.
 
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The best paying insurance in my large Metro area generates our recent grads somewhere around 350- 375 an hour when primarily billing 214 and therapy add-on at two per hr.
 
The best paying insurance in my large Metro area generates our recent grads somewhere around 350- 375 an hour when primarily billing 214 and therapy add-on at two per hr.
Is that after practice expenses? That is not good. Even medicare pays over $450 for 2 f/u visits in my area.
 
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Is that after practice expenses? That is not good. Even medicare pays over $450 for 2 f/u visits in my area.

That is before. My understanding was medicare often pays more than private though
 
That is before. My understanding was medicare often pays more than private though
Medicare is supposed to be the floor of what we accept. And you said best paying insurance, not worst paying. The best paying should be at leAST 30-50% more than Medicare rates. Also bear in mind that big healthcare systems typically negotiate 3x Medicare rates with PPO plans.

Just for two 99214s?
99214+90833 is what they were talking about
 
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Medicare is supposed to be the floor of what we accept. And you said best paying insurance, not worst paying. The best paying should be at leAST 30-50% more than Medicare rates. Also bear in mind that big healthcare systems typically negotiate 3x Medicare rates with PPO plans.


99214+90833 is what they were talking about

Yeah I do know the big health systems get a lot more than single practitioners do.

But "should" and reality are often different. We should get more than medicare, but is this actually common?
 
Yeah I do know the big health systems get a lot more than single practitioners do.

But "should" and reality are often different. We should get more than medicare, but is this actually common?

Yes, if the best paying insurance is worse than CMS, you’re getting screwed pretty bad. Where I’m at 2 f/ups with 214 + 99803 is ~380/hr, and that’s only because we have one of the worst reimbursement rates for 99803 nationally (<$70).
 
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3-4 patients per hour. No NP. In the middle of nowhere. Big organizations with money but can not find people to hire.
Excuse my bluntness, but this sounds terrible. At 3 per hour, it is marginal/below average - $88ish per patient. At 4 patients, you will likely burn out in time while making a mere $66ish per patient. On top of all this, I surmise that this organization pushing up to 4 visits per hour doesn't care about quality. They are also unlikely to care about you and your well being while pushing you this hard. Hey pal, please steer clear of this.
 
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Yes, if the best paying insurance is worse than CMS, you’re getting screwed pretty bad. Where I’m at 2 f/ups with 214 + 99803 is ~380/hr, and that’s only because we have one of the worst reimbursement rates for 99803 nationally (<$70).

So if one is getting CMS rates of $450/hr for 2 patients as mentioned by a previous poster, how are private practice outpatient psychiatry salaries not higher? At $450 x 30 patient hours x 46 weeks a year your revenue is 620k. With the heavy reliance on telehealth these days, it shouldn't be hard to minimize office space to 1-2 days a week. EMR, malpractice, billing, and maybe a few other minor things, overhead shouldn't be too bad. How is your average outpatient psychiatrist not bringing home 5-550k a year working 30 hours a week?
 
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So if one is getting CMS rates of $450/hr for 2 patients as mentioned by a previous poster, how are private practice outpatient psychiatry salaries not higher? At $450 x 30 patient hours x 46 weeks a year your revenue is 620k. With the heavy reliance on telehealth these days, it shouldn't be hard to minimize office space to 1-2 days a week. EMR, malpractice, billing, and maybe a few other minor things, overhead shouldn't be too bad. How is your average outpatient psychiatrist not bringing home 5-550k a year working 30 hours a week?

Don’t think most individual/small group PPs are negotiating rates like this. There are also costs of insurance, other staff, etc but yes in theory if you fill up a PP at those rates, consistently use therapy add-on codes and minimize overhead you can do pretty well.
 
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Don’t think most individual/small group PPs are negotiating rates like this. There are also costs of insurance, other staff, etc but yes in theory if you fill up a PP at those rates, consistently use therapy add-on codes and minimize overhead you can do pretty well.

The above poster mentioned the best insurances are paying single practitioners at or above CMS rates. I agree, I don't think that's common but the way he worded it, it seemed as though he was indicating that is commonplace.
 
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The above poster mentioned the best insurances are paying single practitioners at or above CMS rates. I agree, I don't think that's common but the way he worded it, it seemed as though he was indicating that is commonplace.

Again, I've been in two different midwestern states and the $350-375 is much closer to the rates I've seen from multiple insurers in these states. And again, that's if you're billing EVERYONE every encounter with a psychotherapy add-on code.
 
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Yeah I do know the big health systems get a lot more than single practitioners do.

But "should" and reality are often different. We should get more than medicare, but is this actually common?
I'm sure geography comes into play. Some of the states where they are good paying insurances include OR, WA, NE, and WI. FL and NY sound terrible.

A lot of psychiatrists don't negotiate rates and accept crappy reimbursement.
But the data suggests that office based practices should be getting about 46% more than medicare from commercial insurance though there is a wide variation. I would not accept less than medicare unless you have some compelling reason to do so.
So if one is getting CMS rates of $450/hr for 2 patients as mentioned by a previous poster, how are private practice outpatient psychiatry salaries not higher? At $450 x 30 patient hours x 46 weeks a year your revenue is 620k. With the heavy reliance on telehealth these days, it shouldn't be hard to minimize office space to 1-2 days a week. EMR, malpractice, billing, and maybe a few other minor things, overhead shouldn't be too bad. How is your average outpatient psychiatrist not bringing home 5-550k a year working 30 hours a week?
This is based on f/us for 99214+90833 in high expense locales. Probably closer to 400/hr in general. You are obviously going to have new pts which is much less (more like $250), and pts who are 99214 only, and probably some 99213 or 99215. You might have pts turn up late. Then you have to factor in no-shows, pt non-payment, non-reimbursement from insurance, claim errors etc. Also bear in mind 30 hours of pts is going to be 40 hours or more of practice. So full time. Most people are doing 20-25 pt hours.

But yes, the average private practitioner should be doing quite well for themselves and in fact they are.
 
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I'm sure geography comes into play. Some of the states where they are good paying insurances include OR, WA, NE, and WI. FL and NY sound terrible.

A lot of psychiatrists don't negotiate rates and accept crappy reimbursement.
But the data suggests that office based practices should be getting about 46% more than medicare from commercial insurance though there is a wide variation. I would not accept less than medicare unless you have some compelling reason to do so.

This is based on f/us for 99214+90833 in high expense locales. Probably closer to 400/hr in general. You are obviously going to have new pts which is much less (more like $250), and pts who are 99214 only, and probably some 99213 or 99215. You might have pts turn up late. Then you have to factor in no-shows, pt non-payment, non-reimbursement from insurance, claim errors etc. Also bear in mind 30 hours of pts is going to be 40 hours or more of practice. So full time. Most people are doing 20-25 pt hours.

But yes, the average private practitioner should be doing quite well for themselves and in fact they are.
How do you negotiated rates with insurance? My biller doesn’t do it and doesn’t know anyone who can help
 
How do you negotiated rates with insurance? My biller doesn’t do it and doesn’t know anyone who can help
This is a great question. I personally don't bill insurance for services and am therefore largely ignorant, but many of do bill insurance and are left to navigate uncharted terrain without a compass.

If everyone negotiated aggressively, our going rates would be higher because then the low hanging fruit for insurance to prey upon would be lousy psychiatrists, not the good ones who just happen to be naive to reimbursement and negotiation.

Could someone knowledgeable please create a post with a good primer on insurance negotiating 101?
 
This is a great question. I personally don't bill insurance for services and am therefore largely ignorant, but many of do bill insurance and are left to navigate uncharted terrain without a compass.

If everyone negotiated aggressively, our going rates would be higher because then the low hanging fruit for insurance to prey upon would be lousy psychiatrists, not the good ones who just happen to be naive to reimbursement and negotiation.

Could someone knowledgeable please create a post with a good primer on insurance negotiating 101?

lol you're basically asking someone to post something for free that you usually pay a consultant or practice manager to do for you. Doubt you're gonna get that here.
 
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I have never negotiated insurance rates in PP but I imagine the key would be willingness to walk away. Do the math about what you need to make in your practice and what seems reasonable. If they will not meet it, be willing to walk away. This is especially true if several insurers will meet your expectations and you can focus on their panels + cash pay patients. If no insurers will meet your expectations in an area then you probably need to either go cash only or lower your expectations.
 
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So if one is getting CMS rates of $450/hr for 2 patients as mentioned by a previous poster, how are private practice outpatient psychiatry salaries not higher? At $450 x 30 patient hours x 46 weeks a year your revenue is 620k. With the heavy reliance on telehealth these days, it shouldn't be hard to minimize office space to 1-2 days a week. EMR, malpractice, billing, and maybe a few other minor things, overhead shouldn't be too bad. How is your average outpatient psychiatrist not bringing home 5-550k a year working 30 hours a week?

Splik already brought up many points, but also keep in mind you’re calculating GROSS income, after paying for all overhead, advertising, employees, etc that’s going to be a very different number in most cases. Also, keep in mind that if you’re private and employed you’re only keeping a percent of that. I know plenty of outpatient psychiatrists making $350k. At a 70/30 split they’re bringing in $500k, which is pretty much what you calculated.

Keep in mind, many who own a practice may have significant amounts of uncollected charges. Unlike CMS, getting insurance to actually pay can be a major hassle. To collect what you’re actually billing often requires significant time on the phone chasing down charges or hiring someone to do that for you. So either add more than a few hours per week or cut into your bottom line significantly.
 
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Splik already brought up many points, but also keep in mind you’re calculating GROSS income, after paying for all overhead, advertising, employees, etc that’s going to be a very different number in most cases. Also, keep in mind that if you’re private and employed you’re only keeping a percent of that. I know plenty of outpatient psychiatrists making $350k. At a 70/30 split they’re bringing in $500k, which is pretty much what you calculated.

Keep in mind, many who own a practice may have significant amounts of uncollected charges. Unlike CMS, getting insurance to actually pay can be a major hassle. To collect what you’re actually billing often requires significant time on the phone chasing down charges or hiring someone to do that for you. So either add more than a few hours per week or cut into your bottom line significantly.
Will a billing company do this? Aren't they around 7% or so?
 
Can we talk about overhead for a minute?

A largely tele practice could probably get away renting an office one day a week. Add in emr, malpractice, miscellaneous expenses and aren't we looking at something fairly minimal? Someone bringing in 600k in gross really shouldn't be paying more than 10-12% a year max assuming no employee, which probably isn't needed for a practice like this.
 
Can we talk about overhead for a minute?

A largely tele practice could probably get away renting an office one day a week. Add in emr, malpractice, miscellaneous expenses and aren't we looking at something fairly minimal? Someone bringing in 600k in gross really shouldn't be paying more than 10-12% a year max assuming no employee, which probably isn't needed for a practice like this.

You want to stay busy enough to hit $600k but have 0 staff? People have questions about scheduling new evals, med side effects, hospitalization questions, rescheduling, request updates on PA’s, need paperwork filled out, refills, directions (lost), help for referrals, record requests, etc.

I’d expect to spend hours of uncompensated time every day on these tasks. No one answered about directions (you were seeing a patient at the time). Now the patient is 20 min late. Do you accept the blame and give them a free follow-up, blame them for not having better navigational skills (maybe negative online reviews), or get behind on all patients that day? Many of these types of issues can result in more uncompensated time.

My #1 cause for negative reviews online is not answering all live calls immediately. Even with 1+ staff answering calls, you’ll have times when multiple people call within the same time frame. Enough bad reviews and your referral rate will decrease. This effects your ability to stay busy to reach your desired pay.
 
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People have questions about scheduling new evals, med side effects, hospitalization questions, rescheduling, request updates on PA’s, need paperwork filled out, refills, directions (lost), help for referrals, record requests, etc.

My training program was very OCPD about running clinic on time. There were no excuses for running late, even if I had to hospitalize a patient. It was always the resident's fault if clinic ran late. We were also expected to do almost all the secretarial work too. I used to think it was unreasonable, but now I appreciate it because it forced me to examine logistics of clinic, and implement processes and policies to set expectations and keep things running smoothly.

There's nothing new. A handful of clinic issues consistently pop up, and anything that consistently happens can be addressed at a process level.

New patients always lost? Maybe I have to take into account how difficult it is to find the clinic or traffic/delays/parking issues. Maybe I need to have all news come in 15-20 min prior to actual appointment. If new patients still can't make it on time in this day and age of GPS, well sorry, my established patients absolutely love they are seen on time and don't have to wait an hour. Perhaps one of the many clinics that always run 45-60 min late is better for them, here's a list of their phone numbers.

Tons of calls about med side effects? Well, it's my fault I didn't properly explain the most common side effects to expect and the most serious effects for which they should go to to ER.

Too many PAs? Maybe I'm writing too many new branded meds. Maybe I haven't explained insurance probably won't pay. Maybe I haven't told them their 20 prior meds didn't work because they need therapy, not another new med.

Paperwork? No.

Referral requests? I have a list of resources and specialists in the community.

Too many calls? Well, maybe I need to explain my policy for returning calls, how soon I will return nonurgent calls, how much notice I require for refills or whether I refill outside of apppointments.

My #1 cause for negative reviews online is not answering all live calls immediately. Even with 1+ staff answering calls, you’ll have times when multiple people call within the same time frame. Enough bad reviews and your referral rate will decrease. This effects your ability to stay busy to reach your desired pay.

Answering all live calls immediately is an unreasonable expectation. It probably takes them 15+min on hold to get speak to a receptionist at their PCP's/cardiologist's/oncologist's office.

Maybe bad reviews will decrease referrals. Then again, there seem to be many psychiatrists who plow through tons of patients, are unfazed by complaints or bad reviews, and still make tons.
 
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My training program was very OCPD about running clinic on time. There were no excuses for running late, even if I had to hospitalize a patient. It was always the resident's fault if clinic ran late. We were also expected to do almost all the secretarial work too. I used to think it was unreasonable, but now I appreciate it because it forced me to examine logistics of clinic, and implement processes and policies to set expectations and keep things running smoothly.

There's nothing new. A handful of clinic issues consistently pop up, and anything that consistently happens can be addressed at a process level.

New patients always lost? Maybe I have to take into account how difficult it is to find the clinic or traffic/delays/parking issues. Maybe I need to have all news come in 15-20 min prior to actual appointment. If new patients still can't make it on time in this day and age of GPS, well sorry, my established patients absolutely love they are seen on time and don't have to wait an hour. Perhaps one of the many clinics that always run 45-60 min late is better for them, here's a list of their phone numbers.

Tons of calls about med side effects? Well, it's my fault I didn't properly explain the most common side effects to expect and the most serious effects for which they should go to to ER.

Too many PAs? Maybe I'm writing too many new branded meds. Maybe I haven't explained insurance probably won't pay. Maybe I haven't told them their 20 prior meds didn't work because they need therapy, not another new med.

Paperwork? No.

Referral requests? I have a list of resources and specialists in the community.

Too many calls? Well, maybe I need to explain my policy for returning calls, how soon I will return nonurgent calls, how much notice I require for refills or whether I refill outside of apppointments.



Answering all live calls immediately is an unreasonable expectation. It probably takes them 15+min on hold to get speak to a receptionist at their PCP's/cardiologist's/oncologist's office.

Maybe bad reviews will decrease referrals. Then again, there seem to be many psychiatrists who plow through tons of patients, are unfazed by complaints or bad reviews, and still make tons.
This is an impossible goal. You can not do everything alone. Blaming yourself is going to lead to burnout
 
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My training program was very OCPD about running clinic on time. There were no excuses for running late, even if I had to hospitalize a patient. It was always the resident's fault if clinic ran late. We were also expected to do almost all the secretarial work too. I used to think it was unreasonable, but now I appreciate it because it forced me to examine logistics of clinic, and implement processes and policies to set expectations and keep things running smoothly.

There's nothing new. A handful of clinic issues consistently pop up, and anything that consistently happens can be addressed at a process level.

New patients always lost? Maybe I have to take into account how difficult it is to find the clinic or traffic/delays/parking issues. Maybe I need to have all news come in 15-20 min prior to actual appointment. If new patients still can't make it on time in this day and age of GPS, well sorry, my established patients absolutely love they are seen on time and don't have to wait an hour. Perhaps one of the many clinics that always run 45-60 min late is better for them, here's a list of their phone numbers.

Tons of calls about med side effects? Well, it's my fault I didn't properly explain the most common side effects to expect and the most serious effects for which they should go to to ER.

Too many PAs? Maybe I'm writing too many new branded meds. Maybe I haven't explained insurance probably won't pay. Maybe I haven't told them their 20 prior meds didn't work because they need therapy, not another new med.

Paperwork? No.

Referral requests? I have a list of resources and specialists in the community.

Too many calls? Well, maybe I need to explain my policy for returning calls, how soon I will return nonurgent calls, how much notice I require for refills or whether I refill outside of apppointments.



Answering all live calls immediately is an unreasonable expectation. It probably takes them 15+min on hold to get speak to a receptionist at their PCP's/cardiologist's/oncologist's office.

Maybe bad reviews will decrease referrals. Then again, there seem to be many psychiatrists who plow through tons of patients, are unfazed by complaints or bad reviews, and still make tons.

Too many clinics have failed me on call backs, so missing a live call with me and I’ll go elsewhere. I’m still waiting on some clinics to call me back from months ago. I end taking my family or myself to somewhere with better service. My response is common. My family uses a DPC/concierge PCP. My initial call was answered live, and in rare instances that it is missed, I get a call back within 15 minutes. My urologist and derm answers immediately or max 5 min hold. I don’t think my PCP is any better than other PCP’s. Im paying for the service, low wait times, and access.

It is your practice to run how you want, but if you want growth, these are the issues that will certainly lead to problems.

More issues will lead to more patients initiating chargebacks with credit card companies. Those you’ll need to respond too or just lose the money. Then you’ll need to decide whether to issue and mail termination paperwork or try to repair the relationship. More phone calls or trips to post office for certified mail.
 
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So what I'm hearing is forget in person and go tele (or 95% if the laws change and re-require very periodic in person visits for some patients)
 
You want to stay busy enough to hit $600k but have 0 staff? People have questions about scheduling new evals, med side effects, hospitalization questions, rescheduling, request updates on PA’s, need paperwork filled out, refills, directions (lost), help for referrals, record requests, etc.

I’d expect to spend hours of uncompensated time every day on these tasks. No one answered about directions (you were seeing a patient at the time). Now the patient is 20 min late. Do you accept the blame and give them a free follow-up, blame them for not having better navigational skills (maybe negative online reviews), or get behind on all patients that day? Many of these types of issues can result in more uncompensated time.

My #1 cause for negative reviews online is not answering all live calls immediately. Even with 1+ staff answering calls, you’ll have times when multiple people call within the same time frame. Enough bad reviews and your referral rate will decrease. This effects your ability to stay busy to reach your desired pay.
Largely agree, wife makes it clear she has no staff so there will never be a way to call and all messages have to go through the patient portal. No real complaints so far but it only works when you're the only Psychiatrist in town I'd think. Since she's really the only one referrers are aware and let their clients know before they refer.

For directions I send very detailed directions when the appointment is set so folks don't usually have issues but again that only works if you don't do appointments over the phone and everything goes through the portal.

But if you have competitors I don't know that folks will go through the hassle if they can just go to a competitor instead.
 
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So what I'm hearing is forget in person and go tele (or 95% if the laws change and re-require very periodic in person visits for some patients)
You can certainly try but I think you'll find you fill much much slower tele-only. The wife would probably have less than half the panel she has now if she was tele-only. The folks that we've seen who are tele-only are getting multiple state licenses because they're have significant difficulty filling (and by filling I mean 24-30 clinical hours).
 
You can certainly try but I think you'll find you fill much much slower tele-only. The wife would probably have less than half the panel she has now if she was tele-only. The folks that we've seen who are tele-only are getting multiple state licenses because they're have significant difficulty filling (and by filling I mean 24-30 clinical hours).
I hear your point. However, waiting lists are months long. Are people really going to opt for a mid level or just sit on a waiting list to be seen in person rather than seeing an actual MD/DO via tele right now who also happens to take their insurance? I mean, the big telepsych companies are cashing in on the stay at home crowd.
 
I hear your point. However, waiting lists are months long. Are people really going to opt for a mid level or just sit on a waiting list to be seen in person rather than seeing an actual MD/DO via tele right now who also happens to take their insurance? I mean, the big telepsych companies are cashing in on the stay at home crowd.
If you take insurance tele might be more acceptable, I really don't know. I can only say what we've seen and it seems like a lot of the folks doing tele with multiple licenses live in CA (which is where I think you wanted to live/practice if I remember correctly). Insurance companies are starting to reimburse less for tele-only appointments as well though that seems to be state dependent. If CA allows them to pay less for tele-only make sure to factor that into your equation as well.
 
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