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In 2019 and 2020, many new platforms emerged to assist therapists in building their own private practices. These platforms often market themselves as helping you with credentialing and starting your practice, sometimes even claiming it’s all “free.” While this sounds great, there are a few key details you need to be aware of before diving in.
Understanding the Fine Print
Many platforms will help you get credentialed, but it’s essential to know that they’re credentialing you under their group practice’s tax ID number, not your own. While this may work for some therapists, the lack of transparency can be problematic. If you’re not aware, you might believe you are independently credentialed when, in fact, you’re tied to their group’s tax Id number in order to bill as in network.
The important detail here is that you might not see your explanation of benefits (EOBs), which is the breakdown of what insurance companies are actually reimbursing for your services. Some platforms only provide you with an invoice, making it difficult to track your earnings. Research suggests many platforms take a 60/40 split, which is fairly standard for group practices. However, it’s essential to ask questions upfront and ensure you understand how your payments will work.
Know What You Want
Before choosing a platform or group practice, it’s important to ask yourself: What are my goals? Do I want to be part of a large, national platform with little personal connection, or would I prefer a smaller, local group practice where I know the owners and my colleagues? Some people enjoy the “plug-and-play” convenience of larger platforms, where you can see clients quickly and get a feel for private practice. Others prefer a more tailored experience in a smaller group practice setting.
This decision really depends on your style. Make sure you vet potential group practices and platforms, asking about the logistics and financial structure. It’s essential to find one that resonates with your values and expectations for your practice.
Lack of Experience in Compliance
Another important factor to consider is that many new platforms haven’t been around long enough to undergo audits, which are necessary to ensure compliance with insurance regulations. Audits can be daunting, but they also ensure that everything is running smoothly and that your documentation meets the necessary standards. If a platform or group practice hasn’t gone through this process yet, it’s worth considering the risks.
Building Your Own Private Practice
If your goal is to have full control over your private practice as a stand alone practice, it’s wise to learn about credentialing or hire a credentialing company that can help you get credentialed under your own tax ID number. This allows you to have autonomy over your contracts with insurance companies and ensures that you are building your practice on your own terms.
Alternatively, you can work under a group private practice as a 1099 contractor while also creating your own PLLC (Professional Limited Liability Company). This gives you the best of both worlds—you can work within the safety and structure of a group practice (without the headaches) while also developing your PLLC for the purpose of becoming a W2 employee under your PLLC. This opens you as a provider up to the ability to set up health insurance, retirement plans, and have your taxes deducted so that you are paying into Social Security, etc.
Transparency is Key
One of the most important factors in pursuing your private practice journey is finding a transparent group practice or platform. If a company isn’t clear about how your payments work or avoids answering questions about how they make money, that’s a red flag. Be sure to thoroughly research any platform or group practice you’re considering.
Knowledge is Power
Keep in mind that many people working for these platforms are not clinical professionals and may not fully understand the insurance regulations or nuances specific to your state. This could lead to misinformation. Make sure you’re well-informed and don’t be afraid to verify what you’re told.
Choosing the right group practice or platform can make or break your experience in private practice. Find a group that answers all your questions and provides transparency from the start. Don’t rush into anything, and remember: the right fit is out there for you.
Final Thoughts
Working in private practice is an exciting journey, but it’s essential to ask the right questions and have all the information upfront. Don’t be afraid to challenge the status quo and take control of your practice. Happy hunting and good luck with your private practice endeavors! If you feel that Carolina Counseling Services may be the home for you, feel free to email your Resume and Cover Letter to Applicants@carolinacounselingservices.com we look forward to speaking with you!
