Episode 7: How to decide if you should take insurance
Are you trying to figure out whether you should take insurance? Are you considering having a cash only business? How do you figure out the right answer?
In this episode, I'll address the factors that are fundamental to making the decision of whether you should take insurance.
The most obvious factor is whether the service you are offering is covered by insurance. If the service or business (e.g. float center or yoga studio) is not covered then of course it's cash pay. On the other hand, if you are thinking about starting a private medical practice where most of the services you will offer are going to be covered by insurance. In this case, it is your choice whether you want to accept insurance.
Here are some of the factors that should go into your decision-making:
- What is the service or business you are offering?
- Who is your ideal client?
- Demographics
- Do they have insurance?
- What is their Income level?
- Demographics
- What is your competition doing?
- Do they take insurance?
- How do you figure that out?
- How many patients do you need in order to make the service or business profitable?
- How large is the catch area?
- How much competition is there?
Deciding whether you should take insurance needs to be based on real data rather than emotion. Understanding and evaluating these factors will help you to mitigate the risks of starting any new venture.
Look out for my FB Live where I will be answering questions about this podcast episode.
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