Meta: Many mental health professionals dream of starting a private practice. Consider these pros and cons of private practice that may factor into the decision.

 

Many mental health professionals consider establishing a private practice. However, many end up working in alternative situations or out of hospitals and clinics. In fact, less than half of psychologists, or about 45 percent, establish a private practice. But the lure of being your own boss and offering potentially more personalized targeted care to clients means that many mental health providers dream of opening their own practice. 

 

Let’s look at some of the pros and cons of starting a private practice and ways to overcome some challenges.

 

Private Practice Allows You to Decide the Types of Therapy You’ll Offer

 

When working in a group setting or under the direction of a hospital, a mental health provider may not have a lot of say regarding the types of care the facility will offer. By moving to a private practice setting, the provider can decide whether to offer multiple types of therapies, like group or family therapy, in addition to individual sessions. 

 

Decide to Specialize or Not

 

Not only can private practice open the doors to more types of care, but the provider can also decide on whether to specialize or not. Focusing on a specialty allows a professional to work in their area of interest and hone their expertise. Other providers prefer to serve a broader audience to bring in more patients. A benefit of private practice is that the provider can choose which scenario fits best.

 

Boss vs. Employee

 

Becoming your own boss could be either an opportunity or a challenge. Some people don’t want the full responsibility of running a private practice, while others thrive as the sole decision-makers. Working for someone else may mean living with decisions with which you may disagree. However, in private practice, the only person you can blame for a misstep is yourself.

 

The Financials of Private Practice: Risk vs. Reward

 

Many people dream of private practice but delay their dream or forego it altogether because of financial considerations. Many newly licensed providers may not be financially able to invest in the upfront costs of establishing a private practice. In addition, income fluctuations may occur, especially during the beginning stages. Other factors, such as family considerations, or educational debt, can affect whether, when, and how a person decides on the private practice question. However, many providers who do begin a private practice go on to realize financially successful businesses.

 

A Head for Business

 

A mental health professional who wants a successful private practice must also do double duty as a business person—or partner with someone who can. You’re responsible for getting noticed and bringing in clients as a private practice. Many providers build their own websites, while others outsource this technical skill. Learning search engine optimization (SEO) and social media marketing is critical if you handle the entire operation. These tools can direct people to your practice with little to no financial investment but require some skill to master.

 

Working with Insurance

 

One challenge that many professionals cite is working with insurance panels. The process of becoming a provider for an insurance company can be long and require a significant amount of paperwork. And many providers go through this ordeal with insurance panels multiple times so they can accept patients from various insurance providers. Not every insurance company requires this credentialing process, but many do before you can bill for services. 

 

Time Is a Factor

 

It can take longer than expected to build up a successful private practice. From finding an affordable office space and furniture to seeking out potential clients, a provider might go months or even a few years before their practice feels stable. This period of building can be stressful all on its own. Coupled with outside personal stressors, it can be even more challenging. And private practice can also feel isolating. The responsibilities rest on your shoulders, and you may not have a partner or colleague to help tackle the more demanding patient issues or business snarls.

 

Should You Start a Private Practice?

 

The question of whether you should go into private practice is deeply personal. It involves several factors, such as your personality, preference for working with colleagues or alone, and the type of care you want to provide. Deciding on a private practice also requires a financial investment and some risk that your practice could take a while to grow. But if going into private practice has always been your dream, then it’s worthwhile to explore your personal pros and cons.