How Much Does a Collaborating Physician Cost? A Comprehensive Pricing Guide

Understanding the True Cost of Hiring a Collaborating Physician

For years, the cost of a collaborating physician has been dictated by third-party companies that set standardized rates. These fixed prices created an artificial market, where practitioners had little control over what they paid. However, if you look at real-world data, the pricing landscape tells a different story.

At Single Aim, we’ve analyzed thousands of collaboration agreements and industry trends, and what we see is that most practitioners are paying between $700 and $900 per month. However, the actual range varies significantly, from as low as $500 up to $1,200 or more, depending on a variety of factors.

One of the biggest misconceptions about collaboration pricing is that there is a single “market rate” that must be followed. In reality, collaboration costs should be based on general risk, comfortability, alignment on experience and specialty, and the regulatory environment and limitations—not just a blanket number set by companies looking to standardize pricing for efficiency.

If you’re looking to hire a collaborating physician, understanding why pricing varies, how to structure a fair agreement, and what you can do to control costs is essential to making the right decision.

How Collaboration Costs Have Been Historically Skewed

Historically, large telehealth companies and staffing firms set fixed prices for collaboration agreements, often charging $1,000 to $2,500 per month, regardless of the specifics of the agreement. This created an expectation that these were standard rates, when in reality, many independent practitioners and smaller groups negotiate much lower costs—sometimes under $400 per month.

If you look at platforms like LinkedIn or Indeed, where practitioners actively post about seeking collaborations, you’ll find many requesting agreements at significantly lower rates than the industry norm. This suggests that a significant portion of the market is paying more than necessary.

The good news is that this model is shifting, particularly as independent practitioners become more aware of their ability to negotiate rates that align with their business needs rather than just accepting a fixed number.

What Determines the Cost of a Collaborating Physician?

While the historical pricing model suggests a flat fee, the real cost of collaboration depends on several key factors. These include state-specific regulations, required oversight, specialty, and physician availability.

State Regulations and Physician Limitations

Each state has its own rules regarding collaboration, including restrictions on how many advanced practice providers (APPs) a single physician can oversee. The more restrictive these limits, the higher the potential cost due to limited availability of collaborating physicians.

For example:

• California – Physicians can collaborate with up to four NPs.
  
• South Carolina – Maximum of six APPs per physician.
  
• Tennessee and Texas – Maximum of seven APPs per physician.
  
• North Carolina and Florida – No explicit limit, but agreements require structured oversight.
  

In states with strict caps, physicians often command higher fees because they are limited in how many collaborations they can take on. However, in states with fewer restrictions, there may be more room to negotiate lower rates due to a larger pool of available physicians.

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In-Person and Residency Requirements

Some states require on-site meetings, practice address residency, or active in-state medical practice for collaboration agreements, which impacts pricing.

For example:

• Georgia – Collaborating physicians must actively practice in the state and maintain a practice address.
  
• Alabama – Requires physicians to be on-site quarterly for reviews.
  
• Tennessee and Kentucky – Require periodic in-person meetings.

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These requirements reduce the number of available physicians and add logistical challenges, which often increase costs compared to states with fewer restrictions.

Specialty-Specific Pricing

Not all collaborations are priced the same. Some specialties, particularly those with fewer available physicians, tend to cost significantly more.

• Psychiatry – One of the highest-priced specialties for collaboration. Many psychiatrists charge between $1,500 and $3,500 per month due to high demand and limited availability.
  
• Pain Management and Addiction Medicine – These collaborations often involve medication-assisted treatment (MAT) and controlled substance oversight, which increases liability and can drive costs above $1,200 per month.
  
• Primary Care, Urgent Care, and Family Medicine – More widely available specialties tend to range between $500 and $800 per month.
  
  

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If you are in a specialty with a physician shortage, you will likely pay more for a collaboration agreement. However, if you are in a field with many available physicians, there is more room to negotiate a lower rate.

Prescriptive Authority and Liability Considerations

In some states, collaborating physicians must delegate prescriptive authority for advanced practice providers to prescribe certain medications. The higher the liability, the higher the cost.

• Physicians overseeing prescriptions for Schedule II-V medications often charge higher fees due to legal and malpractice risks.
  
• States that require physician chart reviews or formalized reporting structures increase physician workload, which can drive up costs.
  
  

These nuances are critical to consider when negotiating pricing with a collaborating physician.

How to Structure a Cost-Effective Collaboration Agreement

If you’re looking to hire a collaborating physician while managing your costs, here are some best practices:

Start with a Lower Rate and Scale Over Time

One of the biggest mistakes new practitioners make is agreeing to a high, fixed rate before they even have a full patient load. Many collaborating physicians are willing to start at a lower rate for the first three months, particularly if patient volume is low and there is minimal oversight required.

A common strategy is to negotiate an initial rate of $500–$700 per month with a scheduled review after a set timeframe, at which point the rate can be adjusted based on actual patient volume.

Consider the Scope of the Agreement

Not every collaboration agreement requires full prescriptive authority or extensive oversight. If your state allows flexibility, consider negotiating a limited collaboration agreement that does not include prescribing, which can lower costs. Additionally focus on your experience and the experience of he physician which may also reduce the amount of hours needed to effectively oversee and review the necessary documentation for compliance.

Be Strategic with Budgeting

Collaboration is an essential operational cost, but it should not cripple your business financially. If a $900 monthly collaboration cost exceeds what your practice can afford, it’s worth exploring a lower-cost agreement or structuring payments in a way that aligns with your revenue cycle.

Many practitioners overpay for collaboration simply because they believe they have no other option. However, by taking a data-driven approach and negotiating directly with physicians, you can structure a collaboration agreement that aligns with your practice, your budget, and your long-term goals.

Final Takeaways: What Should You Pay?

• The real range for collaborating physician costs is $500 to $1,200 per month, with most agreements falling between $700 and $900.
  
• State rules, specialty, and prescriptive authority all impact pricing.
  
• Avoid overpaying by negotiating a structured, flexible agreement that aligns with your practice needs.
  
  

At Single Aim, you control your collaboration costs—not third-party companies, so do your research and prepare yourself to take control of the collaboration and terms. If you’re ready to take charge of your collaboration agreement and set terms that work for you, join Single Aim today.

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