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You're Not Imagining It: Why It's Harder to Run a Practice Now (and How to Negotiate Better Rates)

Paul JonasJanuary 29, 20268 min read

If it feels like running a behavioral health practice has gotten harder in the last few years, you're not wrong — and you're not doing it wrong.

Across the country, practice owners are feeling squeezed from all sides: rising costs, heavier administrative burdens, and slower insurance payments. Even well-run practices are finding that the math doesn't work the way it used to.

Let's break down what's driving the pressure, and then walk through a realistic, step-by-step approach to advocating for better reimbursement without burning yourself out.

Why Running a Practice Feels So Much Harder Right Now

1. Overhead Keeps Rising

Rent, utilities, EHRs, billing software, cybersecurity tools, benefits — everything costs more. Even practices that haven't expanded staff are paying significantly more just to operate than they were a few years ago.

2. Administrative Work Is Expanding

Prior authorizations, changing payer rules, credentialing delays, audits, and documentation requirements all take time. That time often comes directly out of your clinical capacity or your personal bandwidth as an owner. This is one reason many practices explore outsourced billing services to reclaim time spent on administrative tasks.

3. Payments Are Slower and Less Predictable

Higher deductibles, increased denials, payer "reprocessing," and delayed remittances mean revenue is less predictable. January slowdowns now seem to stretch well into the year for many practices. Keeping a close eye on your A/R aging report is essential for spotting these slowdowns early.

4. Reimbursement Hasn't Kept Up

While costs rise, reimbursement rates often stay flat — or increase so minimally they don't offset inflation. Over time, this quietly erodes margins and contributes to workforce burnout. Understanding how to maximize your practice's revenue starts with recognizing where the gaps are.

The Result: More Work, Same Rates, Less Cushion

When overhead rises, admin increases, and payments slow, the pressure lands squarely on practice owners. Many respond by seeing more clients, working longer hours, or putting off strategic decisions like rate negotiations because they feel overwhelming.

But avoiding those conversations only locks in the problem.

A Step-by-Step Strategy to Negotiate Better Rates

Step 1: Get Clear on Your Numbers

Before contacting any payer, you need a realistic view of:

  • Average reimbursement by payer and CPT code
  • Denial and underpayment rates
  • Days in A/R by payer
  • Cost per session when you factor in overhead and admin time

You don't need perfection — just clarity. This gives you confidence and credibility. Reviewing your billing KPIs and benchmarks gives you a structured starting point.

Step 2: Prioritize Which Payers to Approach

Not every payer is worth the effort. Start with:

  • Payers that make up a large percentage of your volume
  • Payers with high admin burden or denial rates
  • Contracts that haven't been reviewed in years

Focus your energy where change will actually move the needle. For context on payer contracting strategy, our team can help you assess where opportunities exist.

Step 3: Build a Simple, Data-Backed Case

Your ask should be calm, professional, and specific. Anchor it in:

  • Increased operating costs
  • Length of time since last rate adjustment
  • Market comparisons (when available)
  • Your consistency as a provider (volume, outcomes, access)

Step 4: Ask for More Than Just a Rate Increase

If a straight increase isn't possible, consider:

  • Faster payment terms
  • Reduced admin requirements
  • Fee schedule adjustments for high-volume codes
  • Contract amendments instead of full renegotiations

Small wins add up.

Step 5: Set Boundaries Around the Process

Negotiations take time, but they shouldn't take over your life. Set:

  • Clear timelines for follow-ups
  • Defined decision points
  • A stopping point if the return isn't worth the effort

Protecting your energy is part of protecting your practice.

Step 6: Revisit Contracts Regularly

Negotiation isn't a one-time event. Build a rhythm — annual or biannual reviews — so rates don't quietly fall behind again. For a complementary approach, see our earlier post on negotiating better reimbursement rates with specific tactics for making your case to payers.

You're Not Failing. The System Is Under Strain.

If running your practice feels heavier than it used to, it's because the environment has changed. The solution isn't to work harder. It's to work smarter, set boundaries, and advocate for sustainability.

You deserve rates that reflect the care you provide and the real demands of running a modern practice.

At BreezyBilling, we help practice owners understand their financial metrics, strengthen revenue operations, and create capacity for strategic decisions like payer negotiations. Get in touch to learn how we can help.

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