What Do You Need to Know About Starting or Growing Your Private Practice?As you may know, I have been treating my own private clients since 2006 and teaching others how to start and grow their own private practices since 2008.
Here at The Independent Clinician, we believe in collaboration and supporting friends and colleagues who are interested in taking the leap and starting their own speech, occupational or physical therapy private practice. Every single day, I get emails from clinicians all over the US (and sometimes the world!) about how they can get started without stress, headaches or making mistakes. |
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Here are the top 10 questions I am frequently asked:
1. Can I see private clients "on the side?"
Yes!
I highly recommend starting with 1-4 private clients on the side. If you enjoy private practice and want to expand your caseload and hours --> go for it! Otherwise, seeing clients "on the side" is still considered private practice. It's far less risky than quitting your job before building your caseload.
2. What do I need to do to get started?
You absolutely MUST have professional liability insurance before you see your first client.
Professional liability insurance protects you against claims arising from real or alleged errors or omissions, including negligence in your professional duties. I personally use and recommend The Healthcare Service Providers Organization (HPSO.com). Find out why here.
Your livelihood depends on your professional license. This is the most important step!
3. Are people really willing to pay privately for therapy services?
Yes!
You are exchanging a valuable service for money. While some people opt to use health insurance to cover therapy services, there are some diagnoses / treatments that aren't covered by insurance. Additionally, many clients (especially adults) have exhausted their health insurance benefits and elect to pay privately for continued services.
4. Where should I find clients?
First of all - if you don't have a website, you absolutely need one.
Here's why: when you're looking for help for something (ex. car mechanic, hair stylist, doctor, etc.) where do you look? Online, right?
Your future clients are ALSO looking for services online. Make sure you have a website for your private practice.
You should also be thinking about "who" knows your ideal private clients and make sure you're marketing to them directly. This could be pediatricians, school psychologists, neurologists, etc.
5. What is the going rate for private therapy services in my area?
If I had a dollar for each person who asks that question :-\
It's not a bad question - but basing your hourly rate on an rate set by another clinician in your area assumes that you have the same level of skill / are providing the same service / have the same private practice needs AND it can be construed as "price fixing," which is illegal.
If you need help setting your hourly rate, check out The Guide to Setting Your Hourly Rate.
6. How do I minimize my risk?
The easiest way to do this is to not do anything that would put your license in jeopardy. For example, make sure you follow HIPAA guidelines. See clients in THEIR homes. If you feel uneasy about something - don't do it!
Getting professional liability insurance is a must for people in private practice. You can reduce your liability even further by setting up an LLC.
7. Should I become an insurance provider?
It depends. (Don't you hate it when people say that?)
If you're able to treat private pay clients, stick with that. You will likely get more referrals and business if you become an insurance provider, but there are a lot of headaches involved. That being said, I have an entire process dedicated to deciding whether you should become a provider in The Guide to Private Patients.
Trust me - if you decide to become an insurance provider, sign up for ONE company at a time. It takes a while to get approved, learn how to bill, etc. and you'll get totally overwhelmed if you sign up for multiple companies at a time. GO SLOW and learn the systems before adding other companies.
8. Do I need a business plan / business certificate?
Writing a business plan will help you estimate income and expenses and solidify a vision for your private practice. You will certainly need one if you're applying for a loan.
Some cities require that all businesses get business certificates and some don't. The easiest way to figure this out is to contact your town hall and ask. It's usually a quick and easy process that costs less than $50. (Usually.)
9. What if I make a mistake?
The question isn't IF but WHEN. You WILL make mistakes. You will learn from them. If you are terrified of making a mistake, this isn't the business for you. As long as you don't make a huge mistake (like breaking HIPAA or physically harming a client) you will learn more from mistakes than successes and become a better private practice owner because of it.
I made a TON of mistakes when I was first starting out. I learned from the mistakes and wrote a book about what I did right (and wrong) to save you time and headaches.
If you're interested in minimizing your chance of making a mistake, check out The Guide to Private Patients.
10. How should I keep track of everything?
Here's what you NEED to keep track of:
I wish I could say that you could slack on that stuff in private practice, but unfortunately it's the opposite. The customizable forms in my book should help.
Yes!
I highly recommend starting with 1-4 private clients on the side. If you enjoy private practice and want to expand your caseload and hours --> go for it! Otherwise, seeing clients "on the side" is still considered private practice. It's far less risky than quitting your job before building your caseload.
2. What do I need to do to get started?
You absolutely MUST have professional liability insurance before you see your first client.
Professional liability insurance protects you against claims arising from real or alleged errors or omissions, including negligence in your professional duties. I personally use and recommend The Healthcare Service Providers Organization (HPSO.com). Find out why here.
Your livelihood depends on your professional license. This is the most important step!
3. Are people really willing to pay privately for therapy services?
Yes!
You are exchanging a valuable service for money. While some people opt to use health insurance to cover therapy services, there are some diagnoses / treatments that aren't covered by insurance. Additionally, many clients (especially adults) have exhausted their health insurance benefits and elect to pay privately for continued services.
4. Where should I find clients?
First of all - if you don't have a website, you absolutely need one.
Here's why: when you're looking for help for something (ex. car mechanic, hair stylist, doctor, etc.) where do you look? Online, right?
Your future clients are ALSO looking for services online. Make sure you have a website for your private practice.
You should also be thinking about "who" knows your ideal private clients and make sure you're marketing to them directly. This could be pediatricians, school psychologists, neurologists, etc.
5. What is the going rate for private therapy services in my area?
If I had a dollar for each person who asks that question :-\
It's not a bad question - but basing your hourly rate on an rate set by another clinician in your area assumes that you have the same level of skill / are providing the same service / have the same private practice needs AND it can be construed as "price fixing," which is illegal.
If you need help setting your hourly rate, check out The Guide to Setting Your Hourly Rate.
6. How do I minimize my risk?
The easiest way to do this is to not do anything that would put your license in jeopardy. For example, make sure you follow HIPAA guidelines. See clients in THEIR homes. If you feel uneasy about something - don't do it!
Getting professional liability insurance is a must for people in private practice. You can reduce your liability even further by setting up an LLC.
7. Should I become an insurance provider?
It depends. (Don't you hate it when people say that?)
If you're able to treat private pay clients, stick with that. You will likely get more referrals and business if you become an insurance provider, but there are a lot of headaches involved. That being said, I have an entire process dedicated to deciding whether you should become a provider in The Guide to Private Patients.
Trust me - if you decide to become an insurance provider, sign up for ONE company at a time. It takes a while to get approved, learn how to bill, etc. and you'll get totally overwhelmed if you sign up for multiple companies at a time. GO SLOW and learn the systems before adding other companies.
8. Do I need a business plan / business certificate?
Writing a business plan will help you estimate income and expenses and solidify a vision for your private practice. You will certainly need one if you're applying for a loan.
Some cities require that all businesses get business certificates and some don't. The easiest way to figure this out is to contact your town hall and ask. It's usually a quick and easy process that costs less than $50. (Usually.)
9. What if I make a mistake?
The question isn't IF but WHEN. You WILL make mistakes. You will learn from them. If you are terrified of making a mistake, this isn't the business for you. As long as you don't make a huge mistake (like breaking HIPAA or physically harming a client) you will learn more from mistakes than successes and become a better private practice owner because of it.
I made a TON of mistakes when I was first starting out. I learned from the mistakes and wrote a book about what I did right (and wrong) to save you time and headaches.
If you're interested in minimizing your chance of making a mistake, check out The Guide to Private Patients.
10. How should I keep track of everything?
Here's what you NEED to keep track of:
- client evaluation / treatment documentation
- income
- expenses
I wish I could say that you could slack on that stuff in private practice, but unfortunately it's the opposite. The customizable forms in my book should help.
So now it's YOUR turn. What do you want to know about starting or growing your private practice?
*I am a wife and mother of a busy toddler! Please be patient with me as it may take 24-48 hours for you to receive a response from me.
Family first :-)
Family first :-)