This will always be one of the first questions any medical director or operations manager will ask when researching their options for implementing a psychological service.
We’ve answered this question hundreds of times over the years. These days, with budgets being tighter and scrutiny higher than ever, many people will raise the question in the first few minutes of our conversations. And we understand why that happens.
Cost matters. It’s not the only consideration, but it is pretty important. Price often dictates what level of service and any added value you might get. You need to develop an initial budget and plan for long-term implementation. And that’s true for any kind of psychology service be it the NHS or private.
From the service provider’s perspective, it’s tough to answer this question right off the bat, because a psychological service has so many variables and options.
Quite often, what you will find is a service package with a set price. However, a set package might not include any bespoke approaches your service needs. For example if, say, you wish to add gym sessions to your programme, that will not be included in most packages you see around. Bespoke approaches require a thorough assessment and will reflect on the pricing.
Here at RESET, we believe the best way to know the price of a Psychological service is to assess exactly what you want and need which is why we wrote this article. To really get the best Psychology service you deserve, it’s best if you know what you need.
At RESET, we strive to educate every prospective buyer, even if that leads you towards a different option. In this article, we will do our best to offer some realistic price ranges, based on real-world implementation and potential additional service costs right now (in 2023).
Please keep in mind that all prices, whether for psychological service implementation, additional services, or anything else, are only estimates based on the average psychological service project in 2023. Prices can and often vary drastically based on the service you choose, where your service is delivered, the employees you recruit, and many other factors.
The average price of a Psychological Service
A psychological service will cost from £90,000 to £150,000 to implement and run in 2023. This price is for 12 months for a 5-day-a-week service run by a clinical psychologist and supported by an assistant psychologist.
As with any major project, this price range can increase dramatically as you add more options and services, which might include additional consultancy hours, additional project management hours, and additional reporting requirements.
Most psychology teams will consist of a psychologist and an assistant psychologist as a minimum requirement. Larger services may require several people in each role.
What drives the cost of a Psychological Service up?
We have outlined the approximate cost to hire a part-time Clinical Psychologist (3 days a week). The total is approximately £66k for the 1st year:
Note: these calculations are for a consultant-level clinical psychologist, whose salary range from £65,664 to £90,387 (NHS Bands 8c and 8d). We have used a middle point of £76,000 as the full time salary equivalent for our calculations.
| EXPENSE | COST (£) |
| Salary | 45600 |
| NI | 8694 |
| Pension (3%) | 1368 |
| Bonus (3%) | 1368 |
| Holiday | 28 Days |
| Sick leave | 4 Days |
| Private Health | 1450 |
| Life Assurance | 165 |
| HR/Onboarding | 3000 |
| Training | 1000 |
| Equipment | 1000 |
| Travel | 1000 |
| Clinical Supervision | 1440 |
| TOTAL | 64,717 |
The cost to hire an Assistant Psychologist (full-time) is approximately £33k for the first year. These calculations assume the assistant psychologist is NHS band 4:
| EXPENSE | COST |
| Salary | 25000 |
| NI | 2297 |
| Pension (3%) | 750 |
| Bonus (3%) | 750 |
| Holiday | 28 days |
| Sick leave | 4 days |
| Life Assurance | 165 |
| HR/Onboarding | 3000 |
| Training | 500 |
| Equipment | 1000 |
| TOTAL |
Obviously, the above calculations are based on several assumptions around pension contribution rates, training opportunities, and other additional benefits. The cost could be affected either way by having more or less favourable employment terms.
What drives the cost of a Psychological Service down?
Some healthcare providers want to keep costs to a minimum and ask unqualified and inexperienced staff to plug the gaps. However, we believe the best approach is to improve long-term adherence and patient outcomes which, in the long term, brings the costs down. For that reason, we discourage quick fixes. In our experience looking to save money short term leads to higher long-term costs associated with increased risk of incidents.
However, not everyone has the budget required to implement an all-singing, all-dancing service. There are some things that can be done to reduce costs in your healthcare service, which are explained below:
Streamlining your current processes
Review your workflows and identify any inefficiencies or redundant steps. Look for opportunities to automate tasks or eliminate unnecessary paperwork. Streamlining processes can save time and resources, ultimately reducing costs.
Conducting skills assessments and reassigning tasks accordingly
Conduct periodic skills assessments to identify the diverse skill sets within the organisation. Employers are often unaware of the qualifications or skills that their staff possess, which could be beneficial to the organisation. The skill assessment can help you identify employees with counselling or psychotherapy qualifications and skills that may not be immediately evident and could save you from recruiting someone new.
Optimising resource utilisation
Ensure that your staff are being utilised effectively. For instance, some services might be overstaffed based on patient volumes and needs. Whether you need to hire a psychologist full-time depends on the specific needs and requirements of your psychological service. Having a full-time psychologist may be necessary to meet the demands and ensure quality care. However, if your service is smaller or has a more specialised focus, it may be more practical to have a psychologist on a part-time or consulting-only basis.
Educating and empowering your staff
Invest in training programs to enhance the skills and knowledge of your staff. While having a background in psychology can certainly be beneficial when working with trauma, it is not an absolute requirement to be qualified in psychology in order to work with trauma or to provide trauma-informed care. Many professionals from various fields receive specialised training in trauma-informed approaches to support their patients. The level of qualifications required will depend on the service you want to run and the patients you are aiming to support. It is important to recognise the limitations of your training and expertise. Some situations may require the involvement of mental health professionals, such as psychologists or psychiatrists, who have in-depth knowledge and training in diagnosing and treating trauma-related disorders.
Assessing if there’s a need for supplier contracts
It’s important to assess the specific needs and goals of your psychological service to determine whether hiring a psychologist is necessary or if other arrangements, such as contracting services from external psychologists, can adequately meet your requirements. Consulting with professionals in the field, including psychologists, can help provide insights and guidance based on your unique circumstances.
Avoiding unnecessary qualifications and training requirements
It is possible to run a psychological service primarily staffed by psychotherapists instead of psychologists. The feasibility and appropriateness of such a service would depend on various factors, including the specific regulations and requirements of your department, the qualifications and competencies of the psychotherapists involved, and the scope of practice you intend to offer. Certain regulatory bodies will specify that you require a clinical psychologist in order to obtain accreditation.
Remember, while these steps can help reduce costs in the short term, it’s crucial to maintain a focus on long-term adherence and patient outcomes. Balancing cost-saving measures with quality care should always be a priority.
Any hidden fees I should worry about?
Well, there are some potential additional costs that you should consider when implementing a psychological service. These include:
IT infrastructure and data management
Storing patient data and maintaining IT systems for data management may involve additional costs, such as database maintenance, software licenses, and cybersecurity measures.
Data protection licenses
Depending on the jurisdiction and specific regulations, you may need to obtain licenses or certifications related to data protection and privacy, which could come with associated fees.
Employee insurance
Providing insurance coverage for your employees, such as professional liability insurance, can be an additional cost to consider.
Employee background checks
Depending on regulatory requirements and best practices, you may need to conduct employee background checks, such as Disclosure and Barring Service checks, which may involve associated fees.
Professional registration fees
Psychologists often need to be registered with professional bodies, such as the Health and Care Professions Council (HCPC). Registration fees can vary and should be considered as an additional cost.
Location-related expenses
If you plan to establish your psychological service in a high-demand area or a city with a higher cost of living, you may need to account for higher recruitment costs and potentially higher salaries to attract qualified professionals.
Additional personnel
The basic psychological service team typically consists of a psychologist and an assistant psychologist, but larger services or specialized programs may require additional personnel, which would increase staffing costs.
Training and continuous professional development
Ongoing training and professional development for your staff are essential for maintaining high-quality care. Consider allocating a budget for training programs, workshops, conferences, and certifications.
Equipment and resources
Besides salaries, you should factor in the cost of necessary equipment, such as assessment tools, therapy materials, office supplies, and any specialized equipment required for specific therapeutic interventions.
It’s important to note that the specific costs and hidden fees can vary based on numerous factors, such as the location, size, and complexity of your psychological service, as well as the regulatory requirements in your jurisdiction. Therefore, it’s advisable to consult with professionals in the field, such as clinical psychologists or consultancy firms, to get a more accurate estimation of the costs associated with implementing a psychological service based on your unique circumstances.
How do I decide which Psychological Service I need?
Deciding on the best psychological service for you will require considering your specific needs, budget constraints, and the available options. Here are some steps to help you make an informed decision:
When seeking psychological services, it is important to approach the decision-making process systematically. This involves assessing your specific needs, considering your budget, researching reputable service providers, seeking professional assessment, evaluating cost factors, exploring cost-saving measures, balancing cost and quality, and engaging in open communication. By following these steps, you can make an informed decision about the type of psychological service you require and choose a provider that meets your needs while considering financial considerations and prioritizing quality care.
Ultimately, the best psychological service for you will be the one that aligns with your needs, budget, and quality standards. Take the time to research and consult with professionals to find the service that best meets your requirements and ensures optimal patient outcomes.
Your next steps
In this article, we have explored the cost considerations and factors involved in implementing a psychological service. We have delved into the average prices of psychological services and the various expenses that drive the cost up or down. Additionally, we have discussed cost-saving measures and hidden fees that you should be aware of when establishing a psychological service.
To make an informed decision about the psychological service you need, it is crucial to follow a systematic approach. Assess your specific needs and budget constraints, research reputable service providers, seek professional assessment, evaluate cost factors, explore cost-saving measures, and prioritize the balance between cost and quality.
The next step is to take action based on the knowledge you have gained. Assess your needs, budget, and the available options. Engage in open communication with service providers to discuss your requirements. Consider the advice provided by professionals and make an informed decision about the psychological service that best aligns with your needs and goals.
If you are interested in learning more about how to reduce the costs of your psychological services in the long term, read this blog about What is an Integrated Approach to Care and the 5 Best Methods to Increase Patient Engagement in Mental Health.
Alex Broadbent is RESET’s co-founder and co-director, a semi-professional athlete and a Strength and Conditioning Coach with over 30 years of experience.
