Financial policy forms for therapists

Financial policy forms are one of the first pieces of information a new client will see. It has several important purposes:

Provides payment information

Most obviously, financial policy forms and the fee schedule tell the client what they need to know about your practice’s payment policy. If they have a question about payment, it should be included in the document.

Sets boundaries

The financial policy also begins to set the boundaries for therapy. The client learns what to expect and the limits placed on them. Boundaries are a key part of the therapeutic process and the payment policy is one of the first opportunities for the therapist to implement them.

Financial policy forms are legal contracts

The financial policy acts as a legal contract. The client signs that they understand and agree to the policies outlined in the document. This can come in handy if a payment dispute arises during the therapy process.

Builds rapport

An unintended benefit of the financial policy is that it helps to build therapist-client rapport. It is usually brought up in the intake session and, as such, is one of the earliest interactions a therapist has with a client. It helps set the tone for the therapeutic relationship.

Tips for implementing a financial policy

Utilizing the following tips will help you get the most out of your payment policy:

• Have a lawyer review your financial policy form before you start using it. The financial policy form is a legal document that may be used in a legal proceeding if there is a dispute over a client paying their bill. You will want to have a lawyer review your financial policy forms to make sure it will hold up in court.

• Post your financial policy form online. It is a good idea to have the payment policy on your website as a resource. Clients can read your financial policy form before the intake and access it occasionally as necessary.

• Present your financial policy form at the intake session (or before). The financial policy should be presented at the first session. Your financial policy form contains essential information that the therapist must impart right away. Clients can also look it over before their intake so they can ask you to clarify any parts they may find confusing.

• Go over the financial policy verbally with the client. As a time saver, it may be tempting to have the client review the payment policy online and sign it before they ever talk to you. That is a mistake. To ensure understanding and establish rapport, you must review every part of the financial policy with your client in person (or virtually).

• Set up online payments. You want to get paid for your work. And the ability to pay online gives clients an easy option to pay their bill. Additionally, most practice management software, such as Theraplatform, has associated secure payment systems. Additionally, you can give clients your Zelle or Venmo “handle" to pay through those popular sites, although they may not be as secure as some other systems.

• Payment is due at the time of the session (or before). Collecting payment from a client is an uncomfortable aspect of therapy. It is recommended that you ask for payment at the beginning of the intake session so clients can get used to paying before therapy begins. You may have administrative staff that can do this before the client ever sees you. With internet payment systems, clients can also pay online before the session. If you are stern about this at the beginning it will make it much easier to collect payment later on.

• Get a credit card on file. Having a client’s credit card makes potential payment problems go away. You can automatically charge them for sessions, no shows, and late cancellations without difficulty. Of course, not everyone will be willing to give you one, but it is worth a try.

• Financial info must adhere to the Health Insurance Portability and Accountability Act (HIPPA). In abbreviated terms, this means that your financial policy form must be stored in a secure place and information about the client’s condition or care cannot be included on financial documents.

• Notify clients of late payment and cancellation charges. It is best to contact clients directly and immediately when you are charging them for a no-show or late cancellation. No one likes an unexpected charge popping up on their bill without explanation.

• Don’t give warnings or second chances. This may sound harsh, but strictly adhering to the payment policy can be the difference between receiving money and not being paid. If you give warnings for late cancellations and no-shows, you are creating a slippery slope of which people may take advantage.

• Designate who clients should contact with payment disputes. Clients must have a way to dispute charges. Some therapists don’t want to deal with financial matters and will pass them off to their administrative staff (if they have them). Others may want to handle disputes because they see it as part of the therapy. Whatever your choice, make it clear to clients who they need to talk to.

• Make revisions to the payment policy as necessary and review the changes with clients. Changes in the payment policy and fee schedule will happen over time. Due to inflation, or particular situations that arise, you will want to make revisions. Just make sure you notify your clients when you do. People don’t like surprises when it comes to money.

• Don’t bother with collection agencies or small claims courts. Collection agencies take a large portion of the fees they collect and can engender a lot of ill will with clients. Similarly, going to small claims court is a time-consuming process that is probably not worth the trouble. Unless a client owes a huge sum of money, it is better to simply accept some losses.