all you need to start your private practice (2024)

Seriously! You will be able to take action steps after reading this article (or watching 👉🏻)

Starting a private practice as a therapist can feel overwhelming, but with the right steps and tools, you can build a successful and compliant business. Whether you’re just beginning your journey or looking to refine your setup, this guide outlines everything you need to get started.

Required Steps to Start Your Private Practice

1. Obtain Malpractice Insurance

One of the first steps to launching your private practice is securing malpractice insurance. This coverage is essential for protecting yourself from liability risks. Look for insurance options specifically tailored to your profession, such as those available through organizations like the National Association of Social Workers (NASW).

2. Prepare Essential Forms and Documents

Having the right paperwork is critical. Make sure you have the following forms in place:

  • Telemedicine informed consent

  • Notice of privacy practices

  • Informed consent and contract for outpatient therapy

  • Client requests for confidential communication

  • Credit card authorization form

  • Etc.

It’s a good idea to consult an attorney to develop these documents and to see if you require others to ensure they meet both legal and ethical standards.

3. Establish Practice Policies

Set up clear practice policies to guide how you handle various situations, such as:

  • Late and cancellation policies

  • No-show policies

  • Emergency protocols

These policies help set expectations for your clients and keep your practice running smoothly. Again, it is helpful to consult an attorney when developing your policies.

4. Choose a HIPAA-Compliant Record-Keeping System

Using a HIPAA-compliant Electronic Health Record (EHR) system like SimplePractice is vital for managing client records. EHR software ensures your documentation meets HIPAA standards and most provide integrated Telehealth services to streamline client care.

5. Set Up a Secure Audio/Video Platform for Telehealth

For virtual therapy sessions, use a HIPAA-compliant platform such as Zoom for Healthcare or SimplePractice. These platforms protect client confidentiality while delivering high-quality virtual care. Most EHR’s now have built in telehealth platforms which reduces the amount of software you will need.

6. Implement a Secure Payment Processing System

Make sure you have a HIPAA-compliant payment system in place to handle client transactions securely. Avoid using platforms like Venmo or Zelle, which do not meet HIPAA requirements for secure payments. Again, most EHR’s will have an integrated payment processor.

7. Understand State and Licensing Board Laws

Familiarize yourself with your state’s Telehealth laws and your professional licensing board’s regulations. Staying informed about these requirements is crucial to ensuring you practice legally and ethically, especially when providing services to clients in different states.

8. HIPAA-Compliant Communication System

For communication outside of sessions, use a secure method such as encrypted email or messaging systems available in platforms like SimplePractice. This ensures that all client communications are protected and confidential.

Optional Steps to start your private practice

Short-Term Goals:

  1. List Your Practice on Directories: Increase your online visibility by listing your practice on popular therapy directories like Psychology Today or Alma to attract more clients.

  2. Consider Accepting Insurance: Accepting insurance through platforms like Alma or Headway can help you reach a broader client base looking for in-network providers.

  3. Create a Professional Website: Build a user-friendly website using platforms like Squarespace or Wix to establish your online presence and showcase your services.

  4. Set Up Business Contact Information: Establish a separate business email and phone number to keep professional communications organized.

  5. Form a Business Entity: Create a legal business structure, such as a PLLC or LLC, to separate your personal and business finances.

  6. Open a Business Bank Account: A dedicated business bank account will help you manage your practice's finances and simplify tax reporting.

Long-Term Goals:

  1. Develop Branding and Logo Design: Build a strong brand identity with a logo that reflects your practice’s values and mission.

  2. Create a Marketing Strategy: Implement a comprehensive marketing plan, including SEO and digital advertising, to attract more clients through online search.

  3. Advanced Website Development: Upgrade your website to include features like online scheduling, client portals, and optimized SEO content.

  4. Invest in Quality Audio/Video Equipment: Enhance your virtual therapy sessions with professional audio and video equipment for a more polished appearance.

  5. Optimize Set Design for Virtual Sessions: Create a professional and welcoming virtual session background that simulates a real office environment.

Conclusion

Starting your therapy private practice doesn’t have to be chaotic. By focusing on the essential steps and gradually implementing optional strategies, you can build a compliant, organized, and thriving practice. With the right tools and preparation, your private practice will not only meet the necessary standards but also create a positive impact on your clients’ lives.

Further Guidance

If you found this information helpful and wish to explore more about running and growing a private practice, consider joining my consultation group. This is a place where you can ask questions, receive high quality feedback, participate in live coaching calls, access exclusive video content, and more!

Matthew Ryan, LCSW

I am a therapist, group practice owner, private practice consultant, and content creator. I am passionate about helping people make progress towards their goals.

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How to credential with insurance outside of ALMA, HEADWAY, etc.