Why are so many chiropractors undercharging for their services? In this episode, Brad Cost and Dr. Jay Greenstein sit down with Dr. Ray Foxworth, chiropractor and CEO of ChiroHealthUSA, to break down the complicated relationship between chiropractic fees, insurance reimbursement, allowable rates, and practice profitability.
Dr. Ray Foxworth explains how chiropractors can become anchored to low fees through chiropractic school, insurance contracts, historical fee schedules, and fear of losing patients. He also explores how widespread undercharging can influence reimbursement benchmarks and make it harder for practices to negotiate from a position of strength.
The conversation covers how to set a chiropractic fee schedule, understanding insurance allowables, calculating practice overhead, determining the true cost of delivering care, cash fees, PPO contracts, managed care, and the importance of knowing your practice numbers.
Dr. Foxworth also shares why understanding your overhead and desired profit margin is essential to building a sustainable chiropractic practice and explains how chiropractors can use available data and tools to make more informed decisions about their fees.
In this episode:
• Why chiropractors may be undercharging for their services
• How chiropractic school can create unrealistic fee expectations
• The impact of insurance allowables and contracted rates
• What “price anchoring” means for chiropractic practices
• How to calculate the true cost of delivering care
• Why your billed fee and allowable amount are not the same thing
• How overhead and profit margin should influence your fee schedule
• The relationship between low fees and insurance reimbursement
• Cash fees, PPO contracts, and managed care
• Using practice data to build a sustainable fee schedule
• Why “no profit, no mission” matters for healthcare practices
If you’re a chiropractor, chiropractic student, practice owner, or healthcare professional, this episode offers a practical look at the financial side of running a sustainable practice while navigating insurance reimbursement and changing healthcare costs.
To connect with Ray, you can email him at DrFoxworth@gmail.com or visit his website at chirohealthusa.com.
