Cancellation and No-Show Policy
A cancellation and no-show policy defines the notice period required to cancel a therapy session and the fees charged for late cancellations or missed appointments.
Why You Need a Cancellation Policy
A clear cancellation policy protects your income, respects your time, and sets professional boundaries with clients. Without one, no-shows and last-minute cancellations erode your revenue and disrupt scheduling for clients on your waitlist.
Standard Policy Components
Notice Period
The industry standard is 24-48 hours notice for cancellations. Some therapists require longer notice for intake sessions or extended appointments.
Cancellation Fee
Common approaches:
- Full session fee for no-shows and late cancellations
- 50% of session fee as a compromise that still deters casual cancellations
- Waived first occurrence with full fee for subsequent violations
Exceptions
Build in flexibility for genuine emergencies (illness, family crisis, weather) while maintaining the policy for avoidable cancellations. Define “emergency” in your policy so the standard is clear.
Communication and Enforcement
At Intake
Present your cancellation policy as part of your informed consent paperwork. Have the client sign a specific acknowledgement. Review it verbally — a signed form alone does not ensure understanding.
Consistent Enforcement
Apply the policy consistently across all clients, including sliding scale clients. Inconsistent enforcement undermines the policy and creates boundary issues.
Fee Collection
Specify how cancellation fees are collected: charged to a card on file, billed separately, or deducted from a prepaid session package. A card on file reduces collection friction.
Insurance Considerations
Most insurance plans do not cover cancellation fees. Make this explicit in your policy: “Cancellation fees are the client’s responsibility and cannot be billed to insurance.”
Impact on Practice Revenue
A solo therapist with 22 weekly clients and a 10% cancellation rate loses approximately 2 sessions per week. At $180/session, that is $18,720 per year. Even a policy that reduces cancellations by half recovers $9,000 annually.
For a detailed framework including policy templates and communication scripts, see our cancellation and no-show policy guide.
Related Resources
Waitlist Management
Waitlist management is the structured process of screening, communicating with, and prioritising prospective therapy clients who are waiting for an available appointment slot.
Client Intake Process
The client intake process is the sequence of administrative and clinical steps that onboard a new therapy client, from initial contact through the first session.
Sliding Scale Fee Structure
A sliding scale fee structure is a tiered pricing system where therapy session fees are adjusted based on the client's household income, expanding access while maintaining practice viability.
Session Documentation
Session documentation is the process of recording clinical information from therapy sessions, including notes, assessments, and treatment updates.
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