Private Practice with an LMHC

By: Danielle Nobitz and Lynette Rojas

Introduction and Relevance to Mental Health Field● Private practice is a method of implementing mental health services, which

are privately owned. ● Practitioners who own private practices make their own schedules, have

their own offices, and hire their own staff. ● Private practice practitioners usually have more flexible hours, working

longer days and weekends.● Hiring a staff is optional● Private practice owners must pay for their own benefits, their own

liability/malpractice insurance, and much more● Private practices are helpful in the mental health field because they (most of

the time) have their own niches and have flexible hours for clients.

Personal Qualities ● Self-motivated and self- confident● Risk taker● Basic business skills ● Commitment● Organization skills ● Problem-solving skills● Financial management● Coping skills● Solid morals and ethics● Self-advocacy ● Social supports

● Independent qualities ● Communication & Interpersonal

skills

● Communication and Interpersonal Skills

Advantages of Private Practice● You are your own boss!● Flexible office setting● Flexible office hours/vacation time● Setting fees● Wide range of populations to work with● Own approach to counseling● Create jobs for others ● High reward

Disadvantages of Private Practice● Responsible for everything● Expenses of private practice ● Work style ● Endless paperwork● Long work hours● Isolation ● Non-predictable pay● Responsible for own benefits● Direct work with MCO’s● Business aspects● Potential financial & emotional losses

Legal Matters to Take into Consideration● Business lawyer

○ Local zoning laws○ Business license○ Business is separate○ Malpractice and professional

liability insurance○ Scope of practice

Business Aspects of Private Practice to Consider● Steps to start your own private practice:

○ Multiple roles other than therapist○ Financing○ Selecting business entity

■ Sole proprietorship■ Limited liability company (LLC)■ Corporations■ Partnerships

○ Business name and license○ Malpractice and business insurance

● Developing a business plan● Budgeting and financial planning● Setting and disclosing fees● Managed care organizations

Office Space● Location

○ Subletting office space○ Purchase your own office space○ Pay rent/lease on an office space

● Physical Layout○ Aesthetics○ Organization○ Privacy○ Office supplies

● Client Population○ Children, Adults

What Do I Charge for My Practice?● Know your value● Compare fees with other local

counselors● Consider business expenses

○ How many sessions per week?● Find middle ground (not too high, not

too low)● Collecting fees for services can be a

challenge

Working with Managed Care Organizations (MCO’s)● Benefits:

○ Accepting insurance can provide a steady work flow○ Clientele can be referred to your practice by their insurance

● Disadvantages:○ Additional paperwork○ Restrictions on number of sessions○ Lower payment fees

● Can start off with accepting insurance then transition to self pay.● Insurance panels● Third party payers

Marketing for your Private Practice

Developing a Niche● Balance between your expertise and the

community you are serving○ Social, economic, & political trends

● Competition between agencies and private practice

○ Selling yourself & ability to serve the community● Sell your strong suits (CBT orientation,

specialize in anxiety for children or adults, etc.)● Start general, and develop skills and expertise

over time● Educate yourself as much as you can on your

area of interest○ Trainings, workshops, etc.

Advertising

● Direct○ Online advertisements○ Websites & publication (Psychology Today)○ Social media○ Handing out flyers, business cards, brochures, etc.

● Indirect○ Blog posts○ Articles ○ Newsletters in your niche or community○ Social media○ Vlogs/youtube channel

Networking● Networking is a very important aspect of increasing client intake and getting word of

your practice out there. ● Establish personal connections in the field

○ LinkedIn● Reaching other practitioners in your community is essential for potential referrals

○ Physical therapists○ PCP’s ○ Attorneys○ Nurses○ Schools

○ Other counselors○ School-based Clinicians

Getting Involved with the Community● Speaking at public events within the community

○ Meetings, conferences, school events● Start general information meetings, seminars, or workshops in public spaces within

the community● Assess needs of the community to ensure you’re a good fit

○ Fire dept○ Schools○ Physicians○ Police

● Increase positive reputation within the community, and let them know you’re there to help!

Common Mistakes When Going into Private Practice● Not investing enough time & money● Jumping in full time ● Inaccurate counseling fee● No marketing● Lack of understanding of managed care● Inability to manage/safe money● Lack of insurance coverage ● Poor documentation● Poor billing● Poor financial skills● Neglecting social life/personal relationships

● Lack of self-care

How to Avoid Mistakes● Make sure to create a business plan● Know your worth and do your research to develop a reasonable counseling

fee● Make sure to develop a marketing plan● Make sure you do financial planning and budgeting ● Get business, malpractice and liability insurance● Make sure to collect fees even if you feel uncomfortable● Keep documentation up to date● Seek advice from other mental health professionals who are running their

own private practice● Spend time with loved ones and do not forget self care!

Discussion Questions1. Do you personally feel like you have the qualities it takes to run a successful

private practice? Why or why not? 2. Do you think running your own private practice is worth it considering the

advantages and the disadvantages?

References

● https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/your-checklist-for-starting-a-private-practice-in-counseling

● https://www.apa.org/gradpsych/2011/11/private-practice

● https://wearemore.life/marketing-for-therapists/

● Volungis, A. M. (Anticipated release date fall 2020). Becoming a Clinical Mental Health Counselor: A Guide to Career Development and Professional Identity. Lanham, MD: Rowman & Littlefield.