Communicating Rate Increases With Compassion & Clarity
One of the most important lessons I’ve learned as a practice owner is that clear and compassionate communication is important to the success of your business. It’s not just about scheduling sessions, sending invoices, or keeping up with paperwork, but it's about the way we connect with our clients.
As therapists and practice owners, we are in a service field. That means our work is deeply relational, rooted in trust, empathy, and understanding. Every decision we make should ultimately reflect our commitment to serving clients well, including the way we communicate about sensitive topics like rate increases.
If you ask anyone about what needs the most work in relationships, whether in marriage, friendships, or professional settings, the answer is almost always communication. And yet, it’s the very thing we often neglect when things get busy or uncomfortable.
But as practice owners, we don’t have that luxury. We have to face communication challenges head-on, even when they feel awkward or intimidating.
Why the Rate Increase Is Happening
Let’s start with the why.
Would you agree that a hairstylist who has invested years into perfecting their craft deserves to charge more for their services? Or that someone who pursues additional degrees or certifications should be compensated for that hard-earned expertise? Or, that workers deserve annual raises based on the increased cost of living?
If so, the same principle applies to therapists.
As clinicians grow, develop new skills, and continue their education, their value increases. Their sessions become more informed, their interventions more effective, and their impact more lasting. And yet, many therapists hesitate to raise their rates even when their level of skill and service has significantly grown.
I see this even more so with Christian therapists. We feel guilty charging hirer rates as our clinical work is our ministry in the world. Sadly, at times pastors or other ministry workers or church goers don’t understand why we are charging for services when they can talk to their ministry leader at no cost. These factors make it even more difficult to ask clients for an increased clinical rate.
At Water’s Edge Counseling (WEC), we see rate adjustments as a natural reflection of professional growth and quality of care. For example, when one of our therapists completes specialized training such as EMDR or Gottman Method certification, they’ve added a new dimension of expertise to our practice. That brings increased value to therapeutic sessions.
Being a group practice, it is important that I honor team members by providing raises to those doing their job with excellence. It would be difficult to implement regular raises if client rates stayed the same. By raising client rates, I can better serve my team and meet the increased needs of the practice with fees going up on multiple items such as the EHR, rent, supplies, and other third party platforms and services.
Still, many therapists worry that clients will push back or be upset by rate increases. In my experience, this usually does not happen. In fact, I have had some clients say they are surprised we did not raise the rates earlier because of the value we provide. When clients experience healing and good clinical treatment, they are likely to stay even with a slight price changes.
We also know that those who invest more financially in something tend to be more bought into it. As odd as it may sound, you are doing good to your clients by raising your rates as it causes them to invest more not only financially but of themselves, thus leading to their own healing.
If you consistently offer quality, compassionate, and effective therapy, most clients will trust your decision and continue working with you.
How To Determine the Right Rate Increase
Once you’ve made peace with the why, the next question becomes: how much?
There’s no one-size-fits-all answer here. The right amount depends on factors like your credentials, years of experience, community demographics, and the overall cost of running your practice. But in general, the rate increase should reflect both the growth of the clinician and the value of the service being provided.
At Water’s Edge Counseling, we follow a simple model:
$10 increase for all new clients
$5 increase for existing clients
This approach honors the loyalty of current clients while ensuring that new clients are charged a rate that aligns with the therapist’s current level of expertise. It’s a small, respectful way to show appreciation for ongoing relationships while maintaining healthy business sustainability.
Giving Notice: The Importance of Transparency
How you communicate the rate change is just as important as the rate itself.
Transparency and timing go a long way in helping clients feel respected and cared for. I recommend giving at least 30 days’ notice before a rate increase takes effect. This allows clients to process the change, plan ahead, and ask any questions they may have.
At WEC, we typically implement this process in early November. Here’s what it looks like step by step:
Set the new rates for all clinicians. On November 1, the updated rates apply to new clients who call to schedule an intake.
Update the paperwork. We revise our Good Faith Estimate (GFE) template and Disclosure Statement to reflect the new rates for clients scheduling after November 1.
Draft a letter for existing clients. This letter is uploaded to our EHR library and explains the reason for the increase. It clearly states that the change will begin at the start of the new year. (You can view a sample of our rate increase letter here.)
Encourage open communication. Each therapist discusses the rate change in session with their clients. These conversations are documented in the clinical note, including any client responses or concerns.
In these conversations, we emphasize that we value our clients’ ongoing investment in their mental health and that this adjustment helps us continue offering the best care possible.
The reaction? Most clients understand. When clients feel that the rate increase is rooted in fairness and professionalism, they rarely object.
And for clients who truly can’t afford the change, we make exceptions. We sometimes keep their rate the same or apply a small sliding-scale increase of $5 if possible. The number one goal is to serve our clients while also creating a sustainable practice that can continue serving them well.
Group Practice Owner Tips
If you own a group practice, you know how important it is to balance financial health with team morale. Rate increases can directly affect both. By increasing rates we are able to provide raises as well as additional administrative assistance and supplies to therapists.
One strategy that’s worked well for us at WEC is to schedule staff reviews and raises at the same time each year. We do all of these in December. Instead of doing reviews on each team member’s hire-date anniversary, we batch them together at the end of the year.
This timing makes sense for a few reasons:
It coincides with the slower season, allowing more time for thoughtful conversations, reflection, and planning.
It helps with cash flow, all raises and rate changes happening at the same time, rather than the therapist's pay increasing when cash flow is not.
It is easier on the team when we only need to change pay rates once a year rather than throughout the year at different rates for different clinicians.
When rate increases for clients and raises for staff happen around the same time, your business stays balanced and financially healthy. Everyone feels valued, and your practice continues to grow sustainably.
Communicating With Confidence and Care
Raising your rates doesn’t have to feel stressful or guilt-inducing. In fact, when done thoughtfully, it’s a sign of growth, stewardship, and professionalism.
You’ve invested time, money, and energy into developing your craft and that deserves recognition. But even more than that, your clients deserve to know that you’re committed to offering the best possible care. And sometimes, that means adjusting rates so you can keep doing this important work without burnout.
It is also a time to reflect on the client’s own work throughout the year. You can identify their success in their own treatment. Discussing your rate increase often prompts a conversation to redefine goals and session frequency such as if they want to move from weekly to every other week due to meeting their goals. This is a win!
At the end of the day, your communication sets the tone. When you’re transparent, empathetic, and confident, your clients will follow your lead.
A well-handled rate increase isn’t just a business decision, but an opportunity to reinforce trust, demonstrate professionalism, and model healthy boundaries.
It is a time to clearly and compassionately communicate the value you bring and the important work they do in therapy.
In summary:
Be transparent and proactive about rate changes.
Give clients notice and space to ask questions.
Communicate with empathy and confidence.
Align rate increases with your team’s growth and development.
Create a process for implementation in your practice on an annual basis
If you handle this process with grace and clarity, your clients won’t just understand your decision, but they’ll respect it. And your practice will continue to thrive as a place where both therapists and clients feel valued and cared for.
