{"id":20531,"date":"2018-09-25T09:00:07","date_gmt":"2018-09-25T13:00:07","guid":{"rendered":"http:\/\/www.carecloud.com\/continuum\/?p=20531"},"modified":"2025-10-21T17:14:05","modified_gmt":"2025-10-21T17:14:05","slug":"how-to-create-a-sliding-fee-scale-for-your-medical-practice","status":"publish","type":"post","link":"https:\/\/carecloud.com\/continuum\/how-to-create-a-sliding-fee-scale-for-your-medical-practice\/","title":{"rendered":"How to Create a Sliding Fee Scale for Your Medical Practice"},"content":{"rendered":"

HOW TO CREATE A SLIDING FEE SCALE FOR YOUR MEDICAL PRACTICE<\/span><\/b><\/h2>\n

It is an undeniable fact that health care is expensive. When it comes to paying for health care, we\u2019re not all equal. All individuals\u2019 circumstances are unique, yet everyone has a right to healthcare, regardless of income.<\/span><\/p>\n

But how can we make it work? This is where introducing a Sliding Fee Scale for your medical practice comes into play. This payment<\/a> model makes it easier for patients to pay for their treatment while supporting the financial health of your medical practice.<\/span><\/p>\n

WHAT IS A SLIDING FEE SCALE?<\/span><\/b><\/h2>\n

A sliding fee scale is a payment model designed to assist patients who cannot afford care, such as those who are low-income or must pay for their own care. It takes time to create, set up, and operate a sliding fee scale. Let\u2019s review the steps to follow to set one up for your practice.<\/span><\/p>\n

DETERMINE THE COST OF RUNNING YOUR PRACTICE<\/span><\/b><\/h2>\n

You likely already know how much it costs to run your practice, but maybe not. Either way, the first step is to get a firm handle on your operating costs.<\/span><\/p>\n

ADD UP EXPENSES<\/span><\/b><\/h3>\n

List the costs of running your medical practice<\/a> for one year. Include all expenses, even ones you don\u2019t normally think about. Ensure that both hard and soft expenses like insurance, rent, loan interest, employee salaries, and office and medical supplies are included.<\/span><\/p>\n

SET YOUR SALARY<\/span><\/b><\/h3>\n

Next, determine what you want your take-home salary will be. Add that to the expenses above.<\/span><\/p>\n

PLAN YOUR SLIDING FEE SCALE<\/span><\/b><\/h3>\n

Once you have a solid idea of how much it will take to run your practice for a year, you can focus on creating a sliding scale. Be sure to take time in the planning stage to ensure solid numbers before moving on.<\/span><\/p>\n

IDENTIFY TYPICAL FEES IN YOUR SPOT<\/span><\/b><\/h3>\n

You should know the customary charges for healthcare services<\/a> in your area. These numbers can vary greatly in different parts of the country, so you must research.<\/span><\/p>\n

DECIDE ON YOUR MINIMUM MONTHLY INCOME<\/span><\/b><\/h3>\n

After you have completed the first step, determine one year\u2019s expenses and divide that by 12 to determine how much you need each month.<\/span><\/p>\n

USE PAST NUMBERS TO DETERMINE PATIENTS PER MONTH<\/span><\/b><\/h3>\n

Look at the patient records of previous years and see how many patients you\u2019ve seen in the past year. Divide that number by 12 to find the average number of patients per month.<\/span><\/p>\n

SET MINIMUM FEES YOU CAN CHARGE<\/span><\/b><\/h3>\n

Next, divide the monthly minimum income by your average clients per month to determine the minimum fee you can charge.<\/span><\/p>\n

This step needs to be done for each service you offer and can get tedious. However, putting the time in at the beginning of the process will pay off as you go.<\/span><\/p>\n

CREATE YOUR SLIDING FEE SCALE<\/span><\/b><\/h3>\n

Once the plan is complete, create the actual sliding scale you will use.<\/span><\/p>\n

USE FEDERAL POVERTY LIMITS<\/span><\/b><\/h3>\n

The U.S. is required to do so. The Department of Health and Human Services sets fees based on the patient\u2019s income and a minimum and maximum amount you have set. Use the Federal Poverty Guide.<\/span><\/p>\n

Patients whose income is at or below 100% of the Federal Poverty Level (FPL) will be required to pay the minimum amount, while those above that threshold will pay incrementally until they reach the maximum amount you have set.<\/span><\/p>\n

CREATE THE WRITTEN POLICY AND APPLICATION<\/span><\/b><\/h2>\n

Next, you will need to create a written plan to define your sliding fee scale. Make the document easier to read and understand by using bold type, bullet points, and short, concise sentences as needed. By making the letter easier to read, you reduce the risk of patients saying they didn\u2019t understand it because the letters were confusing.<\/span><\/p>\n

The policy needs to include information about the following:<\/span><\/p>\n