Therapist Rate Increase Letter Template

Looking for a sample rate increase letter to clients? This article includes tips for raising your fees along with a free, editable therapist rate increase letter template.

As a mental health clinician, you may be wondering how to announce a price increase to clients for psychotherapy services.  

Having decided on a fee, it can then be a hard decision to raise those fees—particularly the fees of ongoing clients.  

This article will focus on the process of raising fees, and it includes a sample rate increase letter to clients you can send after informing them of this increase. 

Download the free customizable therapist rate increase letter template, and save it to your electronic health record (EHR) to use whenever you raise your fees.

Before announcing a fee increase

Fee increases should be done only after careful thought and consideration.  

Here are a questions to consider before announcing a fee change using a therapist rate increase letter template:

• Should fee increases only apply to new clients or also to all current clients? What about returning clients?
• How much of a fee increase do you want to make? A tiny increase might not be worth it, yet too large of a jump may lead you to lose clients.
• Will you increase the fees of any sliding scale clients you might have? 
• Will you increase the fees of all your services or just some?
• Will you make any exceptions if a client claims financial hardship?
• Will you notify any clients who don’t have a current appointment on your calendar?
• How might different clients react to the increase, given their clinical history and financial situations?

It’s also important to consider the timing of your announcement and notify your clients about your fee increase a few months in advance. 

Clients may need time to look at their budgets and consider whether they can afford the increase. If not, they may need time to find a new therapist they can afford and/or enough sessions at the current rate to wrap up and close out the work you have been doing together. 

You also don’t want to blindside anyone by putting the fee increase into effect—this could damage the therapeutic relationships you’ve built with current clients. Late notice or inadequate communication can impact your client retention, even among clients who are able and willing to pay your new rate. 

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How to notify clients of price increases

Before using our therapist rate increase letter template to inform clients about fee increases, consider taking the following steps:

Whenever possible, talk to clients directly about fee increases  

Avoid informing them by text, email, or simply using a therapist rate increase letter template to send the message. In this way, you can better respond to their emotional reactions, explain your reasoning, and communicate empathy and understanding. 

Start the session by talking about the fee increase  

Tell the client you have something you need to talk about with them before you get started.

This prevents you from running out of time to discuss the increase, and you don’t have to interrupt a potentially emotional session.

Focus on the client and what this means for them  

Avoid going into detail with clients about your own financial woes or debts that have led to this increase or making price increase justifications.  

Document your discussions

In your session notes, document all discussions you had with the client about the fee increase and the client’s reactions.  

Write a follow-up letter to the client

After talking with the client about your plan to increase fees, follow up on your conversation with an email or letter. This reminds them of the details of this change and it provides written proof that you notified them of the change.  

The SimplePractice therapist rate increase letter template attached to this article gives you an idea of what to include in this letter. 

This letter should include:

• The date the letter was written
• Your name, address, phone number, and email address
• A greeting including the client’s name (e.g., “Dear Jennifer”)
• A sentence reminding them that, as discussed in session, you are raising their rate
• The old fee and the new fee for each service that you provide to them
• The date when the new fees will go into effect
• Acknowledgement that you are aware this could impact them
• An expression of your willingness to discuss their feelings about the increase in future sessions
• An expression of your wish to continue to work with them
• A statement that if the client has questions about the increase, they can contact you

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Sample rate increase letter to clients

Need a sample letter for an increase in professional fees? Here is a sample rate increase letter to clients that you can customize and send to clients:

Therapist Name

Therapist Address

City, State Zip

Phone Number

Email address

Date,

Dear [client name],

I wanted to follow up with a letter to confirm what we discussed in our last meeting – that I will be raising my 60-minute individual session fee from [current price] to [new price], and my 45-minute individual session fee from [current price] to [new price], and my couples and family session fee from [current price] to [new price].

As I mentioned, this increase will not take effect until [date], so we have lots of time to discuss what this may mean for you and your treatment. I am aware that any fee increase can bring up feelings or concerns, and I am open to talking to you further about these in our upcoming sessions.  

I’ve enjoyed working with you, and hope we can continue working together.  

If you have any questions or concerns about this fee change, and you don’t want to wait until our next session to discuss them, please don’t hesitate to reach out to me.  

Sincerely,


[Your Name]


[Your Practice’s Name]

Download the therapist rate increase letter template at the top of this article or use the sample rate increase letter to clients above to guide your communication.

After telling clients about a fee increase

After announcing a fee increase to clients using the therapist rate increase letter template, consider taking the following steps:

• Check in with the client in the next session(s) to process their emotions about the fee increase and help them weigh their options in terms of continuing treatment.
• Document all follow-up discussions you have with the client about the fee increase and their client’s reactions. Document any referrals made, even if the client refused. 
• Be sure to get a new Treatment Agreement signed by the client that outlines your new fee and their agreement to pay this new amount.  

Raising therapy rates may trigger feelings about money

Clients triggers

Fee increases can be a painful reminder to clients that you are not just their dear friend, and that you do not meet with them solely out of caring compassion. 

It may be an abrupt reminder to your clients that therapy is a business for you. And this is a reality some clients don’t like to be reminded of. 

They may also feel some resentment when comparing their own hourly wage to yours. 

Listen to their feelings and validate them, but stay firm.

Therapist triggers 

Most therapists feel very uncomfortable about having to ask for payment for services. We often struggle with guilt about collecting payment from clients, particularly those clients who have money problems.  

We may be uncomfortable with charging more than we ourselves could afford to pay a therapist. 

Consulting with other therapists before raising your fees can be a helpful way to work through these emotions.

Clients may choose to come less frequently 

For example, consider whether you will offer the option for clients to be seen twice monthly instead of weekly.  

The client may drop out of treatment  

In your notes, document all attempts to reach out to the client inviting them to return, and keep a copy of a final letter to them with referrals.

If needed, help clients transition to another therapist

Professional ethics codes require that we do not abandon clients, and that we give some level of assistance to clients if they need to see another therapist. 

If necessary, provide them with a referral or a list of recommendations to ease them through the termination of therapy process.

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