Think about this when you set your fees

Some years ago, I spent a few hours with a health economist. It was an interesting time! What we both realised is that over the course of a year (52 weeks), most physios/practitioners in private practice can only actually bill/charge themselves out for approximately 56% of their entire working year!

That’s right – just over HALF of the time that they are employed can actually be billed for!

How so? Basically, we started at 52 weeks, removed holidays, sick leave, long service leave, public holidays, and so on. Then, of a 38 hour week, we removed three hours for staff meetings, personal developments, and admin and of the remaining 35 hours we allocated an 80% capacity rate.

What this means is, if you set your hourly rate for professional fees at $180 ( i.e. $90 for 30 minutes of consulting), the reality is that the most your staff can bill for is just over half of this on a long term basis. This clearly impacts what you can pay them.

Value what you do, set your fees at an appropriate professional rate in light of the information above. (Hint: they need to be more than $180/hour.)

To learn more about this topic and much more, I am running my 2 day Transform your practice course in October this year! Click here to be forwarded to my website and events page to gain further understanding and read testimonials from past participants. I would love to see you there and share my knowledge to help you work towards the practice of your dreams. 

For more details please visit my website at: www.antonyhirstconsulting.com.au

Sincerely,
Antony Hirst