In "Taking the Fear Out of Fees,"¹ Amy Morgan, CEO and lead trainer of Pride Institute, makes points for dentists that will sound familiar to many audiologists including, "Many dentists have a strong desire to be liked and admired, which results in their setting fees that serve others to the detriment of the practice's needs. Fees, along with operational matters, become easier to handle when you accept the fact that to deliver high quality care, you must have a business that is profitable."

Morgan goes on to state, "Fees must represent your practice's vision, values and quality. Consumers understand the trade-offs between shopping at Nordstrom and Sam's Club, i.e.: between having a personal shopper at their beck and call and carrying their groceries out in a cardboard box." The same is true for most healthcare services including audiology, where prices should be based on the kind of practice, service and outcomes offered rather than on affordability to patients or competitiveness with other audiologists and dispensers.

Some initial and important steps in setting fees include defining and articulating your vision for the practice including what services and products will be offered. For example, will you offer hearing diagnostics, hearing aids, vestibular testing and rehab, tinnitus evaluations and rehab, etc., and will diagnostics or sales represent your core?

As part of your vision, decide if you will you be a generalist or a specialist. Neither is right or wrong but both certainly can impact perceived value. Additionally, identify your personal and practice values (i.e.: way of being or acting) and define the level of quality care you choose to provide.

If you choose to provide exemplary service and products, your fees should reflect that level of care. Competitive fees do not mean "in the middle of the pack" or the same as your competition. You will have to justify your fees to patients or their family members, but according to Morgan, "patients will pay any fee if they like you, they are committed to the treatment you presented and you can make that treatment affordable through flexible financial arrangements."

Marketing professionals tell us people buy things for one of two reasons: to solve a problem or to feel good. Certainly audiologists solve problems by improving communication abilities. Feeling good could tie to reducing the social withdrawal that is often associated with hearing loss. For many patients, pleasure or feeling good results from knowing he or she is doing something that will please his or her family.

Morgan explains that when a patient leaves your office to go down the street for cheaper services, they are really saying they are not that fond of you, do not understand your vision, values and quality or they do not buy into or want your vision, values and quality.

Exceptional practices can and do charge more and do not lose patients because of fees!

To vision, values and quality one must add self-esteem, according to Dr. Charles Blair.²In fact, an audiologist's level of personal and professional self-esteem will impact not only his or her vision, values and quality, but also his or her comfort level with practice fees. No doubt audiologists must be comfortable with the fees they set for practice procedures and be able to portray that comfort to their staff, patients, referral sources, and community. A quote from an unknown author makes the point, "You must believe in yourself if you expect others to do the same."

Perhaps most important, all audiologists must educate consumers about why they should choose to see an audiologist if we expect consumers to seek out audiology care. We must differentiate for ourselves, consumers, physicians, third party payors, and regulators why a diagnostic hearing test is essential and a "must" as the first step in hearing care.

References:

1. Morgan, A. (2007). Taking the fear out of fees. www.dentaleconomics.com. PennWell Corporation, Tulsa, OK.

2. Blair, C. (1998). The art of setting fees. www.dentaleconomics.com. PennWell Corporation, Tulsa, OK.

Kathy Foltner, AuD, is CEO of AuDNet Inc. She also teaches courses in Practice Management and Basic Business at Rush University Medical Center and Salus University. Contact her at kfoltner@aud-net.com or 312-593-1787. Visit www.NowiHear.com or www.aud-net.com for more information.