{"id":5183,"date":"2021-05-31T12:59:56","date_gmt":"2021-05-31T17:59:56","guid":{"rendered":"https:\/\/wellnessfi.com\/staging3\/?p=5183"},"modified":"2025-11-12T15:38:33","modified_gmt":"2025-11-12T21:38:33","slug":"working-at-a-group-mental-health-practice-vs-going-solo","status":"publish","type":"post","link":"https:\/\/wellnessfi.com\/staging3\/working-at-a-group-mental-health-practice-vs-going-solo\/","title":{"rendered":"Pros & Cons of a Group Private Practice"},"content":{"rendered":"

Takeaway:<\/b> You\u2019ve made the decision to venture into private practice\u2013now it\u2019s time to decide whether you want to start a solo practice or join an existing group practice. There is no right or wrong approach, so it\u2019s important to reflect on which is best for you. In this post, we\u2019ll provide insight into the pros and cons of starting a solo practice and a group therapy practice.<\/span><\/p>\n

If you are just starting out, the question will likely come up: join an established therapy group practice or go out on your own? Building your own practice is exciting, but can be overwhelming. Joining an existing group practice can provide you with security, but potentially limit your growth.<\/span><\/p>\n

While this choice can feel overwhelming, it’s important to remember that your decision doesn’t have to be forever. You could choose to join a successful group practice now and go on to open your own solo private practice later-or even open your own group practice one day.<\/span><\/p>\n

Regardless, you still want to make an informed decision about how to start off. Learning more about the potential benefits and drawbacks of each option can help you make the decision that’s right for you with where you stand now.<\/span><\/p>\n

Let’s dive in.<\/span><\/p>\n

\"therapy<\/p>\n

Defining group practice vs. solo private practice<\/span><\/h2>\n

The first step in deciding whether to join a group practice or start a solo private practice is understanding what each one entails. While they’re both pretty much what they sound like, it doesn’t hurt to clarify.<\/span><\/p>\n

A solo practice is just that: you working for yourself and providing all of the services. You’ll choose your clients and your hours, and all profits (and costs) will be yours. You won’t have coworkers in the same way you would with a group practice or agency.<\/span><\/p>\n

Unless you decide to hire a billing service or administrative assistant, you’ll also be responsible for all of the administrative costs and duties as well.<\/span><\/p>\n

Group practices, which consist of multiple therapists, are different in the sense that you are an employee or contractor. There is an agreement between you and the practice (which is likely owned and operated by someone else) about what services you will provide and what you will get in return.<\/span><\/p>\n

Each group practice is slightly different, and the terms of your contract will vary, especially if you are an independent contractor vs. an employee.<\/span><\/p>\n

Pros & cons of group practices<\/span><\/h2>\n

Joining a group practice offers more stability than starting your own private practice. This can take a weight off of your shoulders (especially when you’re just starting out). However, with that also comes less autonomy-and a ceiling on what you can earn. Here’s how to know whether joining an established group practice is right for you.<\/span><\/p>\n

Potential benefits of a group therapy practice<\/span><\/h3>\n

As with having your own practice, there are tons of potential benefits to group private practice counseling. Here are just a few.<\/span><\/p>\n

Similar earnings to having your own solo practice<\/span><\/h4>\n

For one, you earn about the same as the average solo practitioner. Solo practitioners have a profit margin (what\u2019s left after expenses) of around 60%, which is about the same as counselors working at group practices. So being part of a group practice as a contractor or employee you get that same profit margin essentially but without all the fuss of having to pay bills, market, etc.<\/span><\/p>\n

It\u2019s even easier when you’re a W2 employee at a group practice because your employer is paying your estimated\/employment taxes during the year for you as opposed to contractors and solo practitioners who have to manual estimate and pay their taxes throughout the year.<\/span><\/p>\n

Working at a group practice as a 1099 contractor for 60% take home or being a W2 employee for 50\/55% take home is a fair shake in my opinion. Both options are good, but one might be more appropriate for your situation.<\/span><\/p>\n

Lower responsibility working in a group practice<\/span><\/h4>\n

By working at a group practice you don\u2019t have to worry about paying bills. Clinicians don\u2019t have to concern themselves with ensuring rent is paid in time or ensuring that they have enough money in the bank for upcoming bills.<\/span><\/p>\n

This can be great, say, if a pandemic prevents you from using the office but the landlord still requires rent to be paid. My wife hadn\u2019t stepped into her office for a year, yet is stuck paying rent.<\/span><\/p>\n

In the same vein, I recommend to a friend\u2019s wife that she work at a group practice once she gets her license since they may want less responsibility with life changes on the horizon. They are planning to have a kid soon. She may want to spend more time with baby, take less clients, or work less while she\u2019s pregnant or after the pregnancy.<\/span><\/p>\n

By just being an employee at a group practice she will have more flexibility by not being the one responsible for the office lease. She won\u2019t have to worry about working enough hours to pay the bills she\u2019s on the hook for like rent, utilities, and internet; that would be the group practice owner\u2019s responsibility.<\/span><\/p>\n

Simple situation with a group practice<\/span><\/h4>\n

As an employee or contractor at a group practice you\u2019ve got it easy; just do what you are trained to do. All you need to do is see your clients.<\/span><\/p>\n

Additionally, there is admin such as onboarding new clients, consults with potential clients, and charge clients (if your group practice doesn\u2019t have someone do this). These are the things that you can confidently do, it\u2019s what you spent the last several years doing, and what you\u2019ve come to expect from your career (hopefully).<\/span><\/p>\n

Practitioners going it alone have to put on their business owner hat regularly, especially upon starting up their practice. Finding an office, marketing the practice, getting insurance, finding the right software, etc. That\u2019s the easy stuff.<\/span><\/p>\n

What about bookkeeping, incorporating (becoming an LLC, PLLC, or P Corp), paying estimated taxes, filing a tax return as a sole proprietor?<\/span> Our team at Wellness Fi<\/span><\/a> can help you with these things. As you\u2019ll see, these are merely hurdles in getting a lucrative practice up and running.<\/span><\/p>\n

Potential drawbacks of a therapy group practice<\/span><\/h3>\n

While the benefits of a therapist group practice are clear, there are also some potential downsides to be aware of. Keep these in mind as you decide which business model might work best for you.<\/span><\/p>\n

Little control of your earnings<\/span><\/h4>\n

You\u2019re less in control of turning the dial on your pay.\u00a0 Employees\/contractors receiving a 50\/50, 55\/45, or 60\/40 split from a group practice have a fixed financial situation. The only options they have to earn more is to see more clients and risk burnout or to charge more (provided your boss will agree to it and the client will pay it).<\/span><\/p>\n

Solo practitioners can easily adjust costs and the prices they charge clients, allowing them to be much more in control of their earning power.<\/span><\/p>\n

BTW if you are a solo practitioner and wonder whether you are charging enough or how to charge more, spend some time at<\/span><\/i> HeyTiffany.com<\/span><\/i><\/a>.<\/span><\/i><\/a> My clients that have done her course, or just spent time listening to her podcast\/reading her blogs earn much more than they did before being introduced to her. She helps practitioners like you GET PAID WHAT YOU DESERVE.<\/span><\/i><\/p>\n

My therapist clients that work for themselves are in full control of what they earn. They look for cheaper rent, use less electricity, charge more, and are thus able to turn the dial up of their earning power.<\/span><\/p>\n

I have a lot of solo practitioners making profits of $100k+, a handful making $200k+, and a pinch of group practices owners making $400k+. My clients who work as contractors within a group practice are making $30k-60k (I have plenty of solo practitioners in this range too).<\/span><\/p>\n

There\u2019s a ceiling with being an employee\/contractor within a group practice, while solo practices have the potential for significantly more income.<\/span><\/p>\n

\"group<\/p>\n

Solo private practice: pros & cons<\/span><\/h2>\n

Having your own practice can be incredibly empowering-and stressful at times, too. With the increased flexibility and autonomy comes more responsibility and pressure. Only you can decide whether it’s best to open your own private practice. Here’s some insight to help you make that choice.<\/span><\/p>\n

Potential benefits of solo practice<\/span><\/h3>\n

Having your own private practice is a dream of many mental health professionals. There are tons of reasons why it’s appealing. While each person’s professional development goals are different, here are a few reasons why solo practice might be the best bet.<\/span><\/p>\n

Set your own hours and rates<\/span><\/h4>\n

When you start your own practice, you’re in complete control of the business side of things. For one, that means you get to choose your session fee. Instead of being dictated by agencies or even insurance companies, you have more control of your financial wellbeing.<\/span><\/p>\n

You also have the ability to set your own hours. Want every Friday off? Block your calendar. Not a morning person? Start your day at 11:00 AM. You get to choose everything: how many therapy sessions you schedule per day, when you want to meet with clients, and more.<\/span><\/p>\n

Choose your own office space<\/span><\/h4>\n

Private therapy practice owners also get to select where they work, whether that’s a home office or a professional office space. As you likely know firsthand, many agencies have clinicians working in small, windowless spaces that are affordable but far from welcoming. Having your own private practice means you can find a space you love.<\/span><\/p>\n

Potential drawbacks of solo practice<\/span><\/h3>\n

Being your own boss can have its perks, but it can be overwhelming at the same time. These are some factors to consider before venturing out on your own.<\/span><\/p>\n

Business management responsibilities<\/span><\/h4>\n

As a solo practitioner, you’ll be responsible for all of the clinical work-and the administrative work. You’ll need to create your own business plan, field intake calls, manage your own website, and do your own billing.<\/span><\/p>\n

Of course, you have the option to hire a virtual assistant to help with some of these tasks-but that also comes at a cost. On top of that expense (if you choose to do so), you’ll also be responsible for overhead expenses like office rent and supplies, your electronic health record, and more.<\/span><\/p>\n

Attract your own clients<\/span><\/h4>\n

Another consideration with private practice vs. group practice is how you’ll get clients. With a group practice, you might share referrals. With your own solo private practice, you’ll be responsible for all of the marketing that connects you with your ideal clients.<\/span><\/p>\n

\"group<\/p>\n

Our team can help you navigate the logistics of group practice vs. private practice<\/span><\/h2>\n

Whether you choose to open a solo practice or join a group therapy practice, our team is here to help. We offer modern bookkeeping and tax support for wellness professionals like you. Let us help you with the financial side of things so you can focus on what you do best: helping others.<\/span> Reach out<\/span><\/a> today for your free consultation.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Takeaway: You\u2019ve made the decision to venture into private practice\u2013now it\u2019s time to decide whether you want to start a solo practice or join an existing group practice. There is no right or wrong approach, so it\u2019s important to reflect on which is best for you. 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