Knowing what your time is worth is essential for any professional.
Anything you do has an opportunity cost. When you choose to take a day off work, or must attend a meeting, you have lost the opportunity to earn revenue. If you agree to do third party paperwork during time outside your usual office hours, it has no less value. In fact, if you choose to prepare a report for an insurance company during time that would normally be used for leisure activities or spent with your family, it could be argued that your opportunity cost is even higher. Otherwise, you would have gone to work that day!
Therefore, the value of your time can be measured by the most lucrative opportunity you gave up. You can begin to calculate this value by being aware of your current hourly billing rate.
Charging for work based on the time it takes is often preferable to charging by the volume produced. For example, a short medical-legal report may require more time to prepare than a longer one.
Below is tool to assist you in determining an appropriate hourly rate to charge for uninsured services.
NOTE: The hourly rate calculated is based on earnings derived from providing insured medical services. Bear in mind that, in providing insured medical services, you are not operating in a“free market”. Therefore, the level of your earnings does not necessarily reflect what the value of your services would be in an“open market”. Consequently, in calculating your hourly rate for the provision of uninsured services, you may wish to modify your rate upward.
