Your guide to becoming an EAP provider
Learn how to become an EAP provider as a therapist and expand your practice. Discover the requirements, benefits, and step-by-step process to get started.
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Your guide to therapy cancellation policies (with examples)
Establishing a clear cancellation policy helps clients stay accountable for attending sessions — and can save you thousands of dollars per year.
Ryan DeCook, LCSWTherapist
Dealing with cancellations is part of being a therapist. Emergencies happen, clients forget, or unexpected work commitments arise. Life can interrupt scheduled appointments in myriad ways. Knowing how to handle no-shows and cancellations is a necessary skill that you must develop to run a successful practice. A combination of flexibility, firmness, and good communication helps to navigate these scenarios. Here’s what to know about creating a clear and thoughtful cancellation policy.
Why you need a cancellation policy
When there is a cancellation policy in place at your practice, it acts as an anchor and a reference point for you and your client. This policy should be communicated when beginning therapy. Since it is agreed upon at the start of therapy, you can always refer back to it when no-show or cancellation situations arise.
A clear policy helps clients stay accountable for attending sessions consistently. It can be a good motivator for clients to go to therapy even when they feel ambivalent that day. Attendance is linked to outcomes, so a policy that encourages attendance from clients also improves therapy outcomes.
A good policy should never be seen as a punishment to clients. Clear communication around these expectations can also reduce frustrations and the number of money-related discussions you need to have with your client. When things have been discussed and laid out, you won't need to start the conversation from scratch when rescheduling — or if financial issues arise.
As a therapist, a cancellation policy can save you thousands of dollars per year. Even one free cancellation per week can prove costly over time. Not only does it save money for you as a therapist, it also keeps your schedule more stable and predictable, and helps reduce the administrative burden of excessive reschedulings and tracking down payments.
What to include in a cancellation policy
In every cancellation policy there are some key elements that need to be included.
Time frame
The amount of time in which a client must provide notice of the cancellation is a cornerstone of the policy. This lets the client know how far in advance they must communicate in order to avoid a late cancellation fee. This can be 24 hours, 48 hours, 72 hours, or even up to a week for some therapists. You must decide on an amount of time that protects your schedule while remaining fair to your clients.
Fee
The fee amount that will be charged must be clearly stated in the policy. If a client does not show up or cancels within the listed time frame, that fee will be charged to the client. Fees can vary widely according to each therapist’s policy. Some charge full session fees, some charge half of a session fee, some charge a percentage of the session fee, and others will charge some other form of flat rate. You want to select a fee that gives appropriate value to your time but feels fair.
A good emotional test for your cancellation fee is that it protects you from resentment about how much you get paid, but you also don’t feel guilty about how much you are charging the client. You should consider the population you work with and what might be reasonable when setting the cancellation fee.
Exceptions
You will need to determine if there are any exceptions to your cancellation policy. The most common version of this is for emergencies. You can determine in your policy what you consider an emergency and make that clear to the client. For example, a trip to the hospital or a car accident may count as an emergency, but double booking a work meeting may not count. When these exceptions arise, the fee would be waived.
One-time waivers
Think of one-time waivers as a sort of freebie. The first time a client no-shows or cancels without enough notice, they would not have to pay their fee. Therapists will show this as an act of trust building and goodwill with clients. It can also act as a reminder that the next time they violate the cancellation policy, they will incur a fee. Some therapists make this their only exception, some therapists add this in addition to emergency exceptions, and some therapists won’t offer this option at all.
Rescheduling options
Rescheduling can occur in multiple ways. You can charge a full cancellation fee even if the client reschedules. You could offer to see the client if you have space to reschedule them in that same week. You can offer to see them with telehealth instead of in person. In this case, you must define their location, and ensure you are in compliance with local telehealth laws. If you cancel as the therapist, you should offer rescheduling options and never charge a fee in those cases.
Client’s name and signature
The client's name and signature at the bottom of the cancellation policy serve as their formal acknowledgment of the policy. This can be useful if any later disputes arise. This should be delivered in writing, along with the other informed consent documents that are provided to the client prior to the first therapy appointment.
Therapy cancellation policy template
Practice Name: ______________________________
Provider Name & Credentials: ______________________________
Cancellation and Rescheduling Policy
Statement of Purpose:
This policy exists to ensure clarity, fairness, and respect for both your time and the provider’s. Your appointment time is reserved exclusively for you and cannot easily be filled on short notice.
Notice Requirement:
If you need to cancel or reschedule your appointment, please notify me at least ___ hours in advance.
Late Cancellations:
Appointments canceled with less than ___ hours’ notice will incur a cancellation fee of $___.
No-Shows:
If you do not attend your scheduled appointment and do not provide notice, you will be charged the $___ fee.
Exceptions:
Fees may be waived in cases of emergency, illness, or severe weather. Please communicate as soon as possible if such circumstances arise.
One-Time Waiver:
Each client is allowed one late cancellation or no-show without penalty per calendar year.
Rescheduling:
Sessions may be rescheduled without penalty if done with at least ___ hours’ notice. For late rescheduling, the cancellation fee applies unless an exception is granted.
Acknowledgment:
By signing below, you indicate that you have read, understood, and agree to this cancellation policy.
Client Name: ________________________
Client Signature: _____________________ Date: ___________
Therapist Signature: _________________ Date: ___________
*This article and this template should not be considered a substitute for formal legal advice.
Headway’s cancellation policy
Providers on Headway set their own cancellation fees, which apply when a client cancels or no-shows. To charge a fee, the provider must select “client did not show” or “client canceled session” in the calendar; other reasons do not trigger a fee. Cancellation fees, which cannot exceed $200, are paid directly to the provider and included in regular payouts after client payment. Providers can edit, waive, or retroactively add fees before the next payout. Sessions can be rescheduled or canceled through the calendar, and the cancellation policy can be updated anytime in the billing settings.
Grow your practice with Headway.
Headway helps therapists grow their practices by streamlining scheduling, managing cancellations, and supporting clear cancellation policies. The platform allows providers to easily set, update, and enforce cancellation fees, as well as automate reminders and reschedule sessions — all in one place. Headway’s integrated tools reduce administrative burdens by centralizing documentation, forms, and payment processing, freeing therapists to focus on client care. With robust support for handling cancellations and rescheduling, Headway ensures your practice stays organized, minimizes lost income, and maintains professional boundaries.
Starting a practice
Your guide to becoming an EAP provider
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How much does psychotherapy cost?
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