How To Open Up Mental Health Private Practice
/Lots of steps to hanging your own shingle. Below you will find the 9 logistical steps to opening a private practice for you mental health or wellness practice. These are not the only things that need to be done, but this will get you on the right path.
1.Proper Licensure
Make sure you are properly licensed for private practice
Certain states/licenses dictate a certain amount of post graduate hours before hanging your own shingle.
Check with your state board
Kentucky Professional Licensing Directory click here
2.Figure out the answer to:
Why do I want to do private practice?
How do I hope it will make me feel?
What will I do if it doesn’t make me feel that way?
How will I measure my accomplishments throughout the process?
How will I adjust and shift to make sure my work and life goals are still in alignment?
Whether it be 10 pages long, or one paragraph, put it down on paper and make it fit your current business goals.
Allow yourself to alter it along the way as needed.
3.Business Structures
Pick what structure works for you and your business. Pick one that suits your needs now and know that this can always be shifted down the road to accommodate for growing needs and dreams.
4.Find a private practice guru (there are tons) and sign up for their freebies!
No need to reinvent the wheel when others have paved the path before you!
Allison Puryear with Abundance Practice Builders
Joe Sanok with Practice of the Practice
Kate & Katie with Private Practice Startup
Gordon with Practice of Therapy
Laura with Your Badass Therapy Practice
Kelly + Miranda with Private Practice Experts
Lynn Grodzki with Private Practice Success
5.NPI #
The National Provider Identifier (NPI) is a Health Insurance Portability and Accountability Act (HIPAA) Administrative Standard. An NPI is a unique identification number for covered health care providers, created to improve the efficiency and effectiveness of electronic transmission of health information. Covered health care providers and all health plans and health care clearinghouses must use NPIs in their administrative and financial transactions.
You’d think you would know if you had one, but you would be surprised by the number of people that have one that never knew. So, see if you already have one here.
If not, apply here (its free)
6.Business Entities
Click here to learn more about the options
Most common ones in Kentucky are going to be sole proprietorship, LLC, or PLLC
7.EIN
A federal employer identification number (EIN) is a nine-digit number the IRS assigns to businesses for tax filing and reporting purposes.
Sole proprietors are the only business entity that are allowed to not obtain an EIN and use their SS#l instead.
Suggested to obtain an EIN for all business entities to have an added protection against identify fraud (because if not you would have to use your social on all paperwork and some that may be distributed to your clients).
Click here to apply (its free)
8.Find An Office
Make sure that it is private and that you, your clients and their information is safe. Don’t rush into signing a lease because it’s the first one you found. Do your research and take your time.
Confidentiality thoughts
Entrance/exit for clients
If possible, have these be separate for heightened confidentiality
Waiting area for clients
Things to think about when designing yours
File storage
Check with your board to ensure you are complying with their guidelines
Sound between office walls
Steps to take to assist in lowering the noise travel
To get all of this and more, check out shared workspaces such as Alma, Therapy Space and b.mindful Louisville. These locations are designed with mental health professionals specifically in mind to ensure meeting all the unique needs this field has.
9.Make Sure Your Practice Is Covered With Appropriate Insurance
Professional Liability
Professional liability insurance helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. Learn more here.
General Liability
General liability insurance often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. Learn more here.
Property Coverage/Renters Insurance
Your landlord’s insurance will typically only cover physical damage to the space and not your physical items in the space. So, let’s say there is a break in at your office, your landlord’s insurance would cover the broken windows, doors, or damage to the physical property but not your personal items that were taken. That is where your renter’s insurance would step in and cover your computer, office supplies, telephones that were stolen. Learn more here.
If you want to start your practice on the right foot, have a nice furnished space and have access to additional practice building resources, and a close knit community check out b.mindful Louisville. We have had tons of clinicians start their private practices in our offices and have grown their practice quite quickly with our low overhead costs, amenities and support provided. Reach out to Shannon Gonter at 502-528-1363 or at Shannon@bmindfullouisville.com for more details.
Written by Shannon Gonter, Owner, Founder of b.mindful Louisville and professional counselor with Therapy by Shannon