15 Essential Steps to Launch Your Behavioral Health Private Practice

Starting your own behavioral health private practice is an exciting journey. You’re stepping into a world of independence where you can design your practice, set your own hours, and create a therapeutic environment that reflects your values and approach. However, the road to a successful practice involves careful planning and preparation.

Here are 15 crucial steps to take as you prepare to open your doors to clients:

1. Register Your Business Entity

Setting up your practice as a limited liability company (LLC) or professional limited liability company (PLLC) is a critical first step. This not only separates your personal and professional finances but also shields your personal assets from potential legal or financial issues within your practice. Be sure to check your state’s specific requirements for registering your practice.

2. Obtain a National Provider Identifier (NPI)

An NPI is essential for conducting electronic transactions under HIPAA regulations, especially if you use electronic health records (EHR) or submit insurance claims. You can apply for an NPI through the Centers for Medicare & Medicaid Services (CMS). When applying, you’ll need to select a taxonomy code that accurately reflects your professional credentials and specialties.

3. Secure Insurance Coverage

There are two primary types of insurance you’ll typically need: liability insurance and malpractice insurance. Liability insurance protects you in case of accidents or injuries that occur in your office, while malpractice insurance safeguards you against claims related to your professional services. Both types of coverage are essential, particularly if you plan to bill insurance companies for your services.

4. Begin the Credentialing Process

Credentialing is a vital step if you want to be reimbursed by insurance companies. This process can take anywhere from 60 to 120 days or more, depending on the accuracy of your paperwork. Depending on the payer this can sometimes be done concurrently with contracting if you are a newly licensed provider starting a new practice. Consider using services like CAQH ProView to streamline your credentialing process across multiple payers.

5. Get Contracted with Insurance Companies

Once you’re credentialed, you’ll need to negotiate contracts with insurance companies. This involves agreeing on reimbursement rates and ensuring you meet all the payer’s requirements, such as having a tax ID, NPI, and proof of insurance. Highlight what sets your practice apart, whether it’s your specialties, certifications, or unique approach to care.

Not sure on the difference between “Credentialing” and “Contracting”? More on that here!

6. Set Your Rates Thoughtfully

Determining your rates requires balancing what clients in your area are willing to pay with the reimbursement rates from insurance companies. 

It’s a good idea to set your rates slightly above the highest payer’s rate to accommodate future increases. Be sure to review your contracts annually to see if you can request rate increases.

7. Prepare a Professional Will

While it’s uncomfortable to think about, planning for the unexpected is crucial. A professional will ensure that a trusted colleague can manage your practice’s closure, notify clients, and secure their records in the event of your passing.

8. Build a Financial Cushion

Starting a practice requires time to build a client base, so it’s essential to have sufficient savings to cover your expenses until your practice becomes profitable. Consider starting part-time while working elsewhere or saving enough to fully commit from day one.

9. Create Essential Client Forms

To ensure legal and ethical compliance, prepare all necessary forms for new clients, including HIPAA notices, consent to treatment, and financial policies. Having these ready before your first appointment will streamline the intake process and set clear expectations with your clients.

10. Invest in an EHR/Practice Management System

An EHR system is invaluable for managing client records, scheduling, and billing. A robust system not only enhances your practice’s efficiency but also meets client expectations for online services, such as scheduling and payment. We support BreezyNotes and Therapy Notes

11. Develop a Professional Website

Your website is often the first impression potential clients will have of your practice. Ensure it’s professional, informative, and easy to navigate. Include essential details like your services, specialties, insurance networks, and contact information. Consider adding a client portal for intake forms and other paperwork.

12. Establish Referral Sources

Referrals are key to building your client base. Consider joining professional directories like Psychology Today or GoodTherapy, and connect with other local clinicians who can refer clients to you. Building relationships with other therapists and healthcare providers can be a steady source of new clients.

13. Determine How Clients Will Contact You

Set up a professional, HIPAA-compliant communication system for prospective clients. This could be a separate business phone line, a secure email service, or a contact form on your website. Ensure that whatever system you use, it meets HIPAA standards and is convenient for clients.

14. Get Listed on Online Maps

Make it easy for clients to find your office by listing your practice on mapping services like Google Maps. This not only simplifies the process for clients but also enhances your online visibility.

15. Choose the Right Office Space

Your office should be a comfortable and professional environment that meets both your needs and those of your clients. Consider factors like location, size, amenities, and cost. Starting with a smaller space or renting by the hour can be a cost-effective way to get your practice off the ground.

Starting a private practice requires careful planning and attention to detail. By following these steps, you’ll be well on your way to building a successful and sustainable business. If you’re ready to get started and need help with the credentialing, contracting, or any other administrative tasks, BreezyBilling is here to support you every step of the way!