VHMA kicks off 2017 with an Insiders' Insight survey that inquired about practices’ plans to raise fees in the coming months.
The results reveal that clients will be paying more for services. Based on responses from 247 practice management professionals, 77% reported they are raising fees---30% on non-shopped services and 47% on both shopped and non-shopped services. Ten percent plan to keep fees as is and 10% report they will raise some and lower other.
Compared to a 2016 VHMA fee increase survey, slightly fewer respondents plan to raise fees on non-shopped services in 2017 (30% in 2017 compared to 36% in 2016) and about the same percentage planned to increase both shopped and non-shopped service fees (47% in 2017 and 46% in 2016).
Of the respondents increasing fees on shopped services, the greatest concentration of respondents (35%) planned a 3% increase, followed by 21% who favored a 5% increase. These findings are consistent with 2016 results: 30% reported a 3% increase and 22% were considering a 5% increase.
Close to half (49%) of 2017 respondents would like to raise non-shopped service fees between 4-6%. Thirty-nine percent reported a 1-3% increase. Four percent indicated that the practice is considering a 10% or greater increase.
History repeats itself. In 2016, 50% said they would raise non-shopped fees between 4-6% and 39% between 1-3%.
Are respondents concerned that clients are growing more concerned about service fee increases? Apparently not. Seventy-two percent said that their clients are about as concerned about price increases as they have been in the past. Fourteen percent believe that clients are more concerned about price increases and 6% feel their clients are less concerned.
#PracticePulse