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NOTES FROM THE EDITOR

It's just math

"Charge your worth" is arguably the worst advice on setting your fees out there.

Not only is it subjective, but it's based on emotion. Also, how do you even determine "your worth" anyway?

Do you need to back it up by a certain number of years in private practice? Or are you following a specific worldview that therapy should be accessible to all?

In reality, your fee isn’t a reflection of your worth as a clinician but a reflection of what it takes to run a sustainable practice.

It also depends on your location, demand, capacity, overhead, and yes, your financial goals. "Worth" is not a business metric.
It’s an identity metric. And once pricing becomes personal, it gets muddled.

How to think about your fee instead

Therapists set their fees as an hourly rate. That rate depends on whether or not you're accepting insurance and what the average market rate is in your area, and... your comfort level.

The problem with that, is that for the most part, it doesn't account for non-billable work. The work that has to do with:

• Session preparation
• Scheduling and communication with a client
• Documentation
• Administrative tasks
• Marketing work

So your 60 minute rate of $120 can easily turn into $50/hour.

With an average work day being 9 hours, you're looking at $2,250 a week in revenue. Let's assume you have a modest overhead of 30%. That leaves you with a weekly profit of $1,575 before taxes.

That means, that realistically, your net take home will be somewhere between $57K–$61K per year.

If that's enough to support your lifestyle with a 45-hour work week, then charging $120 per session makes sense. But if it's too low of a number, we need to reevaluate your fees.

What you can do

The most obvious thing you can do is to raise your rates. To do that, you need to estimate what weekly caseload you can manage first. Secondly, do a quick competitive analysis to see what other providers charge in your area with your credentials. You wouldn't want to price yourself out.

Next, you can reduce your non-billable work by optimizing your operations with a good EHR system and efficient workflow.

But most importantly, you need to detach your fee from your "worth" and anchor it to the actual math of running your practice.

When pricing stops being personal, it becomes simple. And when it’s based on numbers, it becomes sustainable.

And now to the news!

NOTEWORTHY

CBT Demand Continues to Rise Globally

A new 2025 forecast shows the global CBT market is expected to grow steadily through 2034, driven by increased demand for structured, evidence-based therapy.

Why it matters: If you offer CBT (or want to), demand is projected to stay strong for years, creating stability and opportunity for private practitioners.

BUSINESS AND PRIVATE PRACTICE

Revenue Pressure for Small Practices

A new analysis shows fee cuts, higher denial rates, and increasingly complex billing rules are straining the financial health of small U.S. mental-health practices.

Why it matters: If you rely on insurance, this is a reminder to reassess fees, diversify income, or consider shifting further toward private-pay to stay profitable.

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INDUSTRY NEWS

Psychiatry Shortage Intensifies Access Gaps

A major New York mental-health center is discontinuing psychiatric services due to workforce shortages and stagnant reimbursement, affecting more than 1,100 clients.

Why it matters: Shrinking psychiatric access increases demand for therapists, but also puts more pressure on community mental-health systems and private practices.

FINAL THOUGHTS

Pricing doesn’t need to be your philosophy. It just needs to support a stable, sustainable practice, and your lifestyle.

Thank you for reading this newsletter every week. I try not to take your time for granted and make every issue valuable for you.

Much Love,

Avivit.