Do these 10 things before starting your private practice

Feeling overwhelmed about starting your private practice? Whether you are in New York City, Atlanta, Pittsburgh, or any other city, the process can be overwhelming. Let's simplify things and provide you with a checklist of ten essential steps to set you on the right path.

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1. Secure Malpractice Insurance:

It's a must-have. Start by consulting your professional association for recommendations, or check their website for guidance. For example, if you're a social worker, the NASW recommends NASW Assurance for malpractice insurance.

2. Develop a Plan, Even a Loose One:

Spend some time outlining your practice goals and vision. Ask yourself questions like, "Why am I going into private practice?" and "What are my financial and work-life balance goals?" The answers to these questions will help you formulate goals and a plan. These goals will then inform your other decisions. For example, if your goal is to be in full time practice, you will need to find a way to build a robust caseload.

3. Consult an Attorney:

Ensure your practice is legally and ethically sound by seeking legal counsel. Attorneys can address your concerns about telehealth, HIPAA compliance, and even provide intake packets and documentation templates. Legal advice is invaluable. It’s one of the crucial costs of doing business. Consulting an attorney prior to opening my practice was one of the best decisions I made.

4. Choose an EHR/Practice Management Solution:

Select a reliable platform, such as Jane, to streamline your practice. This essentially becomes the backbone of your practice. This is where you will keep notes, client info, book appointments, process claims, and more. Be sure to choose one that is HIPAA compliant to ensure you keep all your information secure. For more information on what to look for in an EHR check out this video here:

5. Consult an Accountant:

Collaborate with an accountant to navigate tax and business-related matters. They can answer crucial questions about tax obligations, business entities, and multi-state licensure. For example, how often do you need to pay taxes as a private practitioner?, do you need a business entity, if so which type?, how to I pay taxes if I am licensed in multiple states? These questions must be answered, but don’t try to answer these questions yourself. Rather view an accountant as one of the costs of doing good business.

6. Establish a Business Entity:

Based on your accountant's advice, create a business entity, such as a PLLC, PC, or even a DBA certificate. Consider services like Capitol Services for affordable entity establishment.

7. Open a Business Bank Account:

Keep personal and business finances separate by obtaining an EIN and opening a dedicated business bank account. This financial separation is crucial for your practice and prevents tax issues. You obtain the EIN as part of the business entity process. The EIN will be associated with your business entity. From there, you can go into a bank and open a business account.

8. Implement Practice Policies:

Define your practice policies, including late cancellation rules, working hours, and emergency contact procedures. Seek legal counsel for policy recommendations to ensure compliance from the start. Although you can always change these policies in the future its better to start with something than nothing. Here are a few policies to think through

• Late cancellation

• Late arrival

• Sliding scale

• Payment due date

• Emergencies (who to call if there is a crisis)

• Business hours

• Responsibility of verifying insurance benefits

9. Have a Legally Vetted Intake Packet:

An intake packet includes your practice policies as well as forms such as informed consents and notice of privacy practices, both of which are legally required. You will see a lot of therapists trying to sell intake packets at a very high cost. However, you can obtain an intake packet from a lawyer for prices that are comparable. My encouragement is to get your intake packet and note templates from an attorney who specializes in health care.

10. Set Your Rate:

Determine your therapy fee before seeing your first client. Consider your financial goals and market rates for therapists with similar experience, specialties, and location. This is something you can always adjust, but it’s helpful to start with a solid sense of what the fee is and then adjust accordingly. That way you can confidently answer clients when they ask.

If you've found this guidance helpful…

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