Patient quit over cancellation policy

I’ve had my practice for almost two years. Often about 50% of my patients would no show to their appointment and reschedule which wasted a lot of my time. So, I implemented a cancellation policy of $50 charge for no show to in office and $25 for virtual.

I have one patient who has been with me since I opened and he works in the same building. He constantly no shows to his appointments. We had patients sign the policy a month ago and also emailed. We even waived it the first time.

Today he no showed to his appointment and we called to see if he was still coming. He asked to come in 10 mins but unfortunately that would be when my next appointment started. We also offered to squeeze him in today, but said he would have to come in another day. My receptionist kindly reminded him that he would be charged the cancellation fee. He said just cancel my membership then which he pays me $450 per month for over a year.

With that circumstance I feel guilt. I think it’s the thought that he’s given me so much money over the years that I shouldn’t make him pay the cancellation. I also hate to lose that monthly income as I’m growing my business. My urge is to call him and tell him its ok this time again, but then what’s the point of the policy?