If I Asked You This Question - Would You Know The Answer?

If I had to ask you right now….

‘What is your Average Session Fee’

Would you know off the top of your head?

Would you know the exact number?

OR

Would you need to guess?

Would you need to make an estimate?

OR

Would you just state the amount you charge your Medicare Clients?

OR

Would you just assume it’s the same as your most common client rate, for example, NDIS?

Unless you have actually run the REAL numbers, you won’t know the answer to this and I’m sorry to say: guessing is no way to run a business!

Knowing your ‘Average Session Fee’ is a Practice Owner KPI (Key Performance Indicator). YOU are the one responsible for knowing exactly what it is and you are the one to decide on KPAs (Key Performance Actions) required to drive this number up.

I recommend running this number on a MONTHLY basis, which will allow you to closely monitor changes in the number and pro-actively manage any decreases and ensure that it is always moving with an upwards trajectory. 

So how do you calculate this important number in your practice?

You will need to run two reports in your diary system (e.g. PowerDiary):

1.  Total Sales/Revenue for the Month 

2.  Total Number of Billable Session for the Month

You then divide the SALES with the NUMBER of Session to give you your Average Session Fee. 

Knowing your Average Session Fee is an essential part of your budgeting and cash flow forecasting. Not knowing it would mean that you are blindly approving pay increases and blindly making employment offers whilst just hoping you will bring in sufficient money to cover your liabilities – and that is no way to run your practice. 

If you would like help with KPAs (Key Performance Actions) and strategies to help you to pro-actively INCREASE your Average Session Fee month after month (and I’m talking about way more than just your annual fee increase) then be sure to join me and other like-minded group private practice owners in the Private Practice Success Academy or as I like to refer to it… Business School for Allied Health Professionals ☺

All you need to do is send me your EOI via this short form here:  https://bit.ly/TriageApp and if appropriate we will make a time to have a chat.

Here’s to helping you build a private practice you can’t stop smiling about!

Gerda

ABOUT THE AUTHOR

After starting her PhD on the topic of "Psychologists as Practice Owners: Current Challenges, Coping & Success Predictors", Gerda was appalled at the lack of support for Allied Health Professionals going into Private Practice and decided to do something about it. This was the start of Private Practice Success Australia.

 E: gerda@private-practice-success.com | W: gerdamuller.com.au

WINNER: National Allied Health Private Practice Excellence Award

WINNER: Queensland MENTAL HEALTH Achievement Award for Best Small Business 

WINNER: Logan Business Distinction Award