"Average" Salary

JackD said:

Enough to live on, i would say. I have never heard of a homeless psychologist. Although if you are going into the field just to make money, you may be doing it for the wrong reasons. I'm not saying you are, i know nothing about you or you situation in life. The money seems to range from average to decent. Nothing to get excited over though and that is probably the way it should be.

I think this field is about doing what you love and about helping people, not about money. I would be totally happy if i were to become a psychologist and make just enough money to get by. Maybe that is just my anti-materialistic, ultraliberal, hippy philosophy talking but i say who cares about the money, unless you are in a situation where you need a lot? And i do understand that some people do need a lot to get by. But if all you need is enough to support yourself or a family, and maybe a little to have fun now and then, being a psychologist should fulfill that need.

However, if you want to strike it rich with a mansion and a garage full of expensive foreign cars, i don't think psychology is the way to go, even many years down the line. Again, i'm not saying that is your intention and i doubt it is, but just in case that is what anyone is looking for, it probably won't happen with clinical psychology.

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myelin said:

http://research.apa.org/t16dsalaries07.pdf and http://research.apa.org/salsurv.html

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PsyDGrrrl said:

But those are only faculty positions and private practice.

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Twelve hundred-nineteen doctoral-level respondents were licensed, claimed clinical psychology as their major field, and were involved in the direct delivery of health and mental health services to clients in 2003.

The majority of these respondents was employed in practices (60%), including individual private practices, group private practices, and medical psychological group practices (44%, 12%, and 5%, respectively). Approximately 13% and 6% of respondents reported that they worked in hospitals and clinics (e.g., CMHCs, HMOs, outpatient clinics), respectively.

The overall 11-12-month median salary for licensed doctoral-level clinical psychologists was $75,000 in 2003, based on 1,154 valid responses. Figure 5 and Table 5 contain frequency distributions and summary statistics, respectively.

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PSYDR said:

this individual is asking for salaries RIGHT OUT OF GRAD SCHOOL. correct me if i am wrong, but this says "post doc" to me.

to which the answer is 35-45k until you get your license, which generally takes 1 year.

after which the aforementioned salaries apply.

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Welcome to Adelstein Registry Counselors!

We have the highest paying assignments for contract Psychologists throughout California's correctional facilities. *Please note* these positions are for LICENSED or SOON-TO-BE licensed Psychologists (Ph.D., Psy.D.) only.

Compensation is $146,000.00-$178,000.00.

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• 65 percent worked in independent practices (46% in individual private practices and 19% in group private practices)
• 14 percent worked in hospitals
• Five percent worked in clinics
• Three percent worked in elementary / secondary schools
• Two percent or less worked in other settings, such as university counseling centers, criminal justice systems, rehabilitation facilities or other human service settings

• 0 – 1 year: $51,309
• 0 – 4 years: $53,087
• 5 – 9 years: $63,935
• 10 – 19 years: $71,739
• 20 – 24 years: $75,727
• 25 – 29 years: $82,076
• 30+ years: $92, 582

• Hospital: $64,611
• Non-Profit Organization: $55,844
• Private Practice: $74,323
• College or University: $52,319
• School or School District: $57,644
• Federal Government: $81,840
• Company: $60,196

• Salaries for individuals who are employed full time (at least 35 hours per week in salaried positions)
• Net income after office expenses for self-employed individuals who are working at least 35 hours per week
• Net income for individuals with a full-time (at least 32 hours per week) independent practice
• Because many psychologists have additional sources of income from multiple work activities and settings, this data may not represent total income.

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Scary numbers...huh?

Here is some other (simplified) scary math:

Private Practice Income (taking insurance)
(Total Hours x Productivity Rate) x (Hourly Rate Insurance x Full Payment Rate) - (Hard Costs + Soft Costs + Incidentals) = Net Income

Example
Total Hour = Total hours spent working towards your PP
Productivity Rate = % rate you can bill insurance for, shooting for 80-85% is pretty good.
Hourly Insurance Rate = Your negotiated rate from the insurance company
Full Payment Rate = Overall rate at which insurance pays the amount
Hard Costs = Facilities, electric, water, various insurances, etc.
Soft Costs = Marketing, admin assistant/medical billing, etc.
Incidentals = Office supplies, magazine/journal subscriptions, CEs, etc.

Some practices offer a % fee to cover the "cost" end of things, typically 15-20%, so some people prefer that.

The biggest variable is the reimbursement rate, as I've seen some horrid #'s in the mid-$50's, up to $120s or so for intakes/evals.

(40 x 80%) x ($85 x 90%) = $2448/wk Gross Profit

Gross Profit x 83% (if you give 17% for overhead and associated costs to the practice) = $2302/wk

Not bad..right?

The average full-time private practice can take anywhere from 6 months to 2+ years to build, and even then it can be difficult. A large % of practices fail to reach a full year, while others often fail due to an inability to fill spots.

The math is much dirtier than above because of varying rates of reimbursement, lag time for reimbursements, hours wasted fighting a rejected claim, start-up costs ($ and time), lost earning potential will setting up your office, etc.

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All of the above is why you hire someone like me to come in as a consultant. It is just like building any other service based business, with a few fun wrinkles for insurance, etc. Ok...more than a few, but you get the idea.

I'll leave the gruesome math for my pitch presentations, but feel free to ask any questions.