Boost Your Private Practice Revenue By Increasing Your In-Network Insurance Contract

Best PracticesInsurance + Billing

Boost Your Private Practice Revenue By Increasing Your In-Network Insurance Contract

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Published: Aug 17 2023

Are you finding it challenging to secure an increase in your in-network private practice insurance contract? 

We understand that reimbursement rates can be a major factor in the income of mental health professionals, sometimes posing a significant challenge. The good news is that there's still potential for growth, even if you're already in-network.

The process of submitting claims to insurance companies and waiting for payment can be exhausting. It's frustrating to deal with delays or denials that affect your practice's cash flow, making it seem like negotiating higher rates is impossible.

But here's the thing: it's not impossible at all. We'll share valuable tips to help you increase those contracts and ultimately boost your practice's revenue.

Remember, just like your clients, you deserve to have a life that’s expansive and abundant, not constricted by the for-profit insurance companies who try to drive down their costs.

Increase those contracts and ultimately boost your practice's revenue.

In-Network Contracts: Pros and Cons of Insurance Panels for Therapists

Making the decision to become in-network with insurance companies can be a tough call. As a mental health professional, you strive to provide excellent patient care while ensuring your practice remains unaffected. 

Luckily, being part of an in-network plan can bring several advantages for both you and your patients. Let's explore three of these benefits:

Generate Referrals, Increase Intakes with Insurance Panels for Therapists:

By signing an in-network insurance contract, you gain access to a larger pool of potential patients. Insurance companies often guide patients towards in-network providers as part of their managed care approach to control costs. This means you have the opportunity to generate more referrals and increase your patient intake, ultimately helping your practice thrive.

Negotiating Therapist Insurance Contracts Is Available:

Being an in-network provider allows you to negotiate rates with the insurance company. This enables you to establish fair fees for your services, ensuring competitiveness within your local market. Additionally, compared to an out-of-network contract, you can retain a higher percentage of each payment. These negotiable rates also offer your patients greater financial flexibility, making it easier for them to afford and continue their treatment.

Insurance Panels for Therapists Provide Easier Payment and Administration:

One of the perks of being an in-network provider is joining a clearing house, setting up direct deposits into a bank account, and an overall simplified payment and administration process. Insurance companies have established protocols that streamline the claims process, making it more straightforward for you to collect payments from patients. This saves you time and effort, allowing you to focus more on providing quality care.

Healthcare providers often rely on these advantages to keep their businesses thriving, but it's also important to consider the disadvantages that come with becoming an in-network provider. 

Let's take a look at some of these challenges:

Increased Patient Flow Not Guaranteed:

While becoming an in-network provider can potentially attract more patients to your practice, it's important to note that it's not guaranteed. The actual volume of patients seeking your services depends on various factors, including the market and the specific rules and regulations of the insurance company. Carefully assess whether the potential increase in patient flow justifies the time and effort invested in setting up and managing these contracts.

Financial Confusion:

Dealing with varying contract terms, insurance requirements, and other financial complexities can be confusing. Not only are therapists confused, clients often feel lost as well. Between co-pays, co-insurance, in-network deductibles, and out-of-network reimbursements; it's understandable that we’re all a little baffled.

Seeking assistance in accurately predicting how much the insurance company will reimburse for your in-network services can help. Additionally, insurance companies sometimes take time to process claims, resulting in delays in payment that can create financial challenges for your practice.

Payer Audits:

As an in-network provider, you’re subject to payer audits. These audits involve the insurance company reviewing your submitted claims to ensure accuracy and compliance with contract terms. While they serve as a quality control measure, it's important to be aware that discrepancies or inaccuracies identified during an audit can lead to delayed reimbursement or even denial of the claim. Additionally, insurance companies can demand that the reimbursements be paid back to them if notes aren’t considered complete or if treatments are deemed unnecessary. Staying vigilant with maintaining accurate documentation can help mitigate potential issues.

Why Is Negotiating Therapist Insurance Contracts Important?

One of the appealing aspects of in-network contracts for providers is the opportunity to serve patients with broader insurance coverage. Even so, it’s still important to take a close look at your in-network contracts and negotiate them wisely to keep your practice financially secure. 

Reimbursement rates specified in the contract should cover your practice's costs, as it otherwise becomes challenging to operate at a profit. A well-structured in-network contract aligns with the actual expenses involved in providing care and reflects current market rates for similar services. By evaluating if the rate matches the market and adequately accounts for the cost of care, you can determine whether it's time to initiate negotiations. 

As a professional, finding the right balance between meeting your business needs and safeguarding your patients' interests is crucial. By carefully examining and negotiating your in-network contracts, you can create a win-win situation where your practice thrives financially while providing excellent care to your patients. 

This approach enables you to practice ethically and profitably, contributing to the long-term sustainability of your practice.

When Should You Negotiate Your Therapist Insurance Contract?

There are several important instances where negotiating your in-network contract can make a significant difference:

When Starting Your Private Psychotherapy Practice:

When you're just starting out in your private practice, the terms of your initial agreement with an insurance provider play a vital role. Set yourself up for success by securing a fair and equitable contract that aligns with your goals and aspirations.

During Practice Expansion, Relocation, or Ownership Changes:

As you grow and expand your practice or undergo changes in ownership or management, it's a great time to reevaluate and negotiate the terms of your contract. These changes can impact your practice's dynamics, and it's in your best interest to ensure that the agreement continues to support your success.

Negotiating Therapist Insurance Contracts During Annual Renewals:

Many insurance companies automatically renew existing contracts on an annual basis. To ensure that your practice is always getting the best terms, take the time to carefully review these renewal agreements. 

Staying up-to-date with changing industry standards allows you to negotiate new terms that are favorable to you, such as higher reimbursement rates or specific services that you offer.

It's important to note that negotiating your insurance contract isn't solely about maximizing your own profits. The terms of the contract also have a direct impact on patient care. By securing higher reimbursement rates, you can offer more comprehensive services to your clients, ensuring they have access to the highest quality care they need and deserve.

Prepare Before Requesting an Increase in Your Contract

When it comes to renegotiating your contract, there are important steps to take that can increase your chances of success. By doing your homework and preparing for the negotiation process, you can be better equipped to achieve your desired outcomes.

Review Your Current In-Network Insurance Contract

Take time to familiarize yourself with the terms and conditions of your agreement.

Take the time to familiarize yourself with the terms and conditions of your agreement, including details about compensation and reimbursement. Understanding what to expect and the timing of payments will help you make informed decisions during negotiations.

Explore Your Options

It's beneficial to explore the various payment plans, reimbursement rates, and incentives offered by insurance companies. By understanding these options, you can strategize and pursue the best possible deal for your services. 

Additionally, learning about out-of-network insurance benefits will allow you to inform your patients about their coverage options and gain a comprehensive understanding of your rates.

Collect Accurate Data

Gather relevant information such as the number of claims you typically process, the volume of services you provide annually, and any other pertinent data. This data will help the insurance company recognize the value you bring to the table as a contracted provider.

Highlight Your Strengths When Negotiating Therapist Insurance Contracts

What sets you apart from other mental health professionals in your area? 

Do you have specialized expertise or experience with a specific patient population? 

Articulating and emphasizing your strengths can greatly influence the success of your negotiation and increase the value of your insurance contract.

Focus on Total Reimbursement

While it's tempting to focus on fees for individual services, prioritizing the bottom line is the most important. Ensure that the total reimbursement adequately covers your overhead and expenses. If the contract falls short in meeting these criteria, it's important to negotiate until you achieve a fair and reasonable agreement.

Should You Seek Legal Assistance When Negotiating with Insurance Panels for Therapists?

Consider seeking legal assistance and advice if you find insurance contracts overwhelming. Navigating the complexities of insurance terms, especially in psychotherapy, can be challenging. A professional can provide guidance and help you fully understand the intricacies of the contract.

Steps To Increase Your In-Network Insurance Contract

If you've determined that you need to increase your in-network insurance contract, it's time to take action with these four steps:

Step 1: Write a Letter 

Start by drafting a formal letter to the insurance company, clearly stating your request for an increase in your reimbursement rate. Include all necessary supporting documentation, such as a comprehensive list of services you provide, your current rates, and any additional information that can help the insurance company understand your position. 

You can use a template similar to the one below, as a helpful guide for crafting your letter:


[Insurance Provider Name]


RE: Request To Increase Reimbursement Rate

Dear [Insurance Provider Name],

I am writing to request an increase in the reimbursement rate for my services to [Insurance Provider Name] members.

As a [therapist type] for [#] years, I believe my services are invaluable to my clients and should be commensurately compensated. The current reimbursement rate is [XX], which is below the [state] average of [XX]. Many of my clients rely on [Insurance Provider Name] for their mental health care needs, and I want to ensure I am able to continue providing those services at an appropriate rate.

I understand that you are committed to providing quality care for your members, and I believe increasing the reimbursement rate for my services is necessary to ensure that I can continue to provide those services.

I look forward to hearing from you regarding this request.


[Your Name]

[Your Title]

Step 2: Be Prepared for a Meaningful Discussion

While written requests are typically the norm for insurance companies, some may also opt for interviews or meetings with providers. Be ready for this possibility as it can offer a valuable opportunity to have a more in-depth conversation about your services, why they warrant the requested increase in reimbursement rate, and how it can mutually benefit all parties involved.

Step 3: Reach Out to Your Plan's Provider Relations or Contracting Department

When you feel prepared to discuss your request, get in touch with the insurance plan's provider relations or contracting department. Inquire about the appropriate channel for submitting your request and any additional information they may require to process it effectively.

Step 4: Send Your Thoughtfully Crafted Letter

Once you have gathered all the necessary documents and information, send your well-prepared letter to the address provided by the provider relations or contracting representative. Remember that it may take some time for the insurance company to review your request, but you can follow up as needed or as you see fit.

By approaching this process with careful consideration and open communication, you increase your chances of achieving a favorable outcome in your quest to increase your in-network insurance contract.

Insurance Contract Negotiation Tips for Requesting a Reimbursement Rate Raise

How about thinking of this process like you would a job interview? 

You have the qualifications and skills to provide exceptional care and want to show this to the insurance company, so your value is recognized.  

Here are some tips to consider:

  • Clearly State Your Fees and Use CPT Codes: When communicating your rates, be sure to specify the fees for each service provided and use the CPT codes listed in the insurance company's fee schedule. This will help the insurance company understand your rates better and facilitate smoother processing.
  • Emphasize Your Value: While there are other factors that may contribute to your need for an increase, such as inflation and the cost of living, the primary focus should be on highlighting your value as a provider. You can mention these factors, but make sure they take a secondary role to showcasing the unique value you bring to patients and the community.
  • Avoid Threatening Resignation: It's generally not advisable to create a "take it or leave it" ultimatum, even if your needs are not being met. Instead, approach the discussion with a reasonable and positive mindset. Engaging in a constructive dialogue is more likely to lead to a successful outcome.
  • Consider Trying Again in Six Months: If your initial request is denied, don't be discouraged. You can try again in six months. There's nothing to lose by making another attempt, so you can exercise your right to revisit the issue at a later time.

Become Part of The Cooperative to Learn More Insurance Contract Negotiation Tips for Therapists

As a mental health professional, increasing your in-network insurance contract opens up opportunities for practice growth and higher income. Don't hesitate to negotiate for what you rightfully deserve and emphasize how your services contribute to the overall health and well-being of your community.

Joining Clarity Cooperative gives you access to a supportive community of professionals who share your mindset. You'll gain exclusive resources that can assist you with various aspects of private practice, such as insurance panels, credentialing, and contracts.

When the time is right for you to boost your revenue, we hope that the tips we've provided on increasing your in-network insurance contracts will set you on the path to success. 

With Clarity,


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