Therapist's Guide to Collection Letters

Maintaining a balance between compassion and professionalism, this guide helps therapists draft effective collection letters.

May 5, 2024

As a dedicated therapist managing your practice, you understand the importance of maintaining a balance between compassionate care and professional boundaries. When it comes to sending a collection letter to a client, approaching the situation with empathy and understanding can make a significant difference. Here's a guide to help you draft a personalized and effective collection letter:


Begin by addressing the client by name and expressing your hope that they are doing well. Acknowledge the sensitive nature of the topic and assure them that your intention is to assist them in resolving any outstanding balance.

Explanation of Situation:

Briefly explain the purpose of the letter, which is to notify the client of an outstanding balance for therapy sessions. Reassure them that you understand that managing finances can be challenging at times.

Offer of Assistance:

Extend a helping hand by offering to discuss payment options or set up a payment plan if the client is facing financial difficulties. Let them know that you are committed to finding a solution that works for both parties.

Request for Payment:

Include a copy of the bill and kindly request that payment be made within a specific timeframe, such as within the next week. Provide clear instructions on how payment can be made.


Express gratitude for the client's understanding and cooperation. Reiterate your commitment to their well-being and your willingness to support them through this process.

Collection Letter Template:

Dear [Client Name],

I hope you're well. It's [Your Practice Name's] policy to contact clients who've received a bill in the past 30 days but have yet to remit payment. I know that life often gets in the way, and bills get misplaced or overlooked, so I thought it best to contact you directly.

Do you have questions about your bill or your insurance benefits? If so, contact me right away, and I will address any of your concerns.

If you're experiencing any financial difficulties, please let me know so we can set up a payment plan. I'll find a way to help you fulfill your commitment without creating any additional hardship.

Attached is your overdue bill. If you've already sent your payment in, please ignore this letter. Otherwise, I look forward to receiving payment within a week of your receipt of this letter.

I appreciate your prompt attention. Thank you,

[Your Name][Your Practice's Name]


Closing the letter with a warm and encouraging tone can leave a positive impression. Let the client know that you value their relationship and look forward to continuing to support them on their journey to healing.

Kaizen Therapy:

At Kaizen Therapy Solutions, we understand the challenges of running a therapy practice. Our comprehensive mental health software is designed to streamline practice management and enhance client care, allowing you to focus on what matters most: your clients' well-being.

Join our waitlist today on the front page to get a chance to have this software for FREE when it launches.  

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