New practitioners often ask:

‘What should I charge? What is the standard rate?’

Under the law, the AHA is unable to publish a recommended standard for the schedule of fees which our members should charge, as it would be illegal to do so – illegal for the AHA to publish such a recommendation, and illegal for members to follow it.

Such recommendations regarding a schedule of fees would contravene the express guidelines of the Competition Policy Reform Act of 1995. These guidelines state that individual members of a profession should determine their own fees without interference from third parties.

According to the guidelines, an agreement or understanding to adhere to a recommend fee scale (for example, a fee scale issued by the AHA) would amount to a price fixing agreement. The Act is also designed to prevent agreements “which purport only to recommend prices but which in reality fix prices between competitors”.

The Commission specifically and strongly discourages the involvement of associations in the establishment of professional fee structures.

The costs which would be involved, should the AHA and/or our members risk being charged for breaching the Act, could include: the legal costs of defending a case and/or paying monetary penalties of up to $10 million per breach for companies and $500,000 for individuals, plus injunctions, damages etc.

Some examples:

From discussions with members it appears that people charge from $100 to $180 for the first consultation, and up to $50 or $100 for the follow-up. This may or may not include the medicine.

Remember that some people tend to associate low price or no cost with a poor quality product, and not value the service. They may, therefore, tend not to follow instructions.

In order to cater for those who do not have the capacity to pay, some people provide a discount for pensioners and disadvantaged groups. A few provide consultations free-of-charge to select groups, with the medicine either free as well, or at a small charge.

What you charge depends on your judgement regarding what your local market can afford, and how much you feel confident in charging. The bottom line is that you need to juggle the amount so that you can continue to operate the business and provide an income.

Remember to be realistic about the fees to charge, and the amount of time that it can take to build up a practice. If possible, you should have some financial backing when you start. Most small businesses take at least 3 years to take hold.

Informing the patient:

Prospective patients should be informed of the practitioner’s consultation fees prior to the commencement of the consultation (usually when the first appointment is being made), so that there are ‘no surprises’ or grounds for complaint.