Perhaps one of the most asked questions we get from our clinical colleagues looking to enter the healthtech sector, clinicians often don’t have an anchor on how they should price their own services.
Today we will look to break down some of the key factors you should consider.
And remember. Cost is a perception of value, the more you are able to provide solid value that solves a critical business problem - the more you can negotiate your rates.
But equally important is to understand that healthtech startups aren’t exactly swimming in funds - it is one thing to charge a price, it is another altogether whether they can afford it.
Before setting a fee structure, it is essential for clinicians to understand their value proposition. HealthTech companies often seek clinicians for:
Imagine this: you’re sitting across the table from a HealthTech startup founder who’s eager to launch their app for chronic pain management. Your input as a clinician not only gives them direction but also ensures their product resonates with real-world needs.
This depth of expertise should be appropriately reflected in your consulting rates.
Here are a few factors that we take into consideration whenever we price our consulting sessions:
(The more niche your expertise, the more you can charge)
The complexity and depth of the project significantly affect pricing. For example:
(In our honest opinion, equity based engagements are only valuable if you are DEEPLY aligned with the company and can see yourself working with them for years. Otherwise, cash is king.)
Think about this scenario: A company approaches you for a six-month consulting role to guide the clinical integration of their wearable device. Negotiating a retainer fee could offer you predictable income while allowing the company consistent access to your expertise.
Here are some of our own pricing models that we use whenever a startup engages the clinicians in our network.
Hourly rates are ideal for:
However, clinicians must track hours accurately and communicate expectations upfront. An hourly rate can range from £100-£400 depending on expertise and the nature of the work.
Day rates are suitable for more intensive engagements that require full-day commitments. Typical day rates in the UK range from £750-£1,500. For highly specialised fields, this could go as high as £2,500. (And remember, the more days committed - the lower the rate goes usually)
For defined deliverables, clinicians can charge a flat fee for the entire project. This model works well for tasks like:
Flat fees should be calculated based on the estimated hours required, ensuring fair compensation for time and expertise.
(This model works only if you have experience delivering a project and know how many hours it will take to complete. It can be a riskier model as projects tend to overrun in their timelines - but this is a preferable model for most companies)
Retainers are ongoing agreements where clinicians provide a set number of consulting hours per month for a fixed fee. This model offers:
Monthly retainers typically range from £2,000-£5,000 depending on the level of involvement.
In some cases, startups may offer equity in lieu of payment. While this can lead to substantial financial gains if the startup succeeds, it is also risky. Clinicians should:
(We would personally recommend taking equity only when you have established a closer relationship with the company. You can only cash in on your equity when a company exits, and that is incredibly rare in this sector)
Above all, communicate, communicate, communicate.
We hope that this article has been helpful to you. This is written based off our own experience delivering over 100 consulting jobs and have learnt by trial and error.
If you would like to be contacted for consulting opportunities do sign up for our clinical network.
At the Medical Consulting Group, we help clinicians sort out all the above + any pesky paperwork - so that all you have to focus on is doing what you do best!