People who dream of starting a private practice in the field of behavioral health rarely daydream about the logistics involved. But preparing for common challenges is fundamental to success. Before you take on the roles of both behavioral health provider and entrepreneur, it’s important to consider all of the behind-the-scenes work required.
Defining your practice’s niche, navigating regulatory and legal considerations, creating a business plan and a budget, and developing a marketing strategy are just a few of the aspects to consider before opening a private practice.
One of the first, most important questions you need to answer is, “do I need a new EHR?” Your electronic health record system will be the backbone of your behavioral health business. Whether you’re spinning off a new practice, or starting from scratch, the answer to that question could make a big difference for your new endeavor.
Start by Thinking About the Technology That Supports Your Practice
An electronic health record (EHR) should centralize and streamline many of the administrative tasks associated with starting a private practice. Scheduling, appointment reminders, billing, insurance verification, and collaboration with other members of a patient’s care team are just a few of the tasks made simpler with an EHR. Secure online portals allow patients to access their health records, view test results, complete tasks, and communicate with your practice.
If you are part of a group practice now and looking to strike out on your own, consider the EHR you’re currently using. Does it meet your needs? Will it serve you well in your new practice? Sometimes the ease of going with what you know is tempting. Learning a new system can be a daunting prospect.
But if there’s anything you don’t like about the EHR you’re using now, such as trouble with documentation, billing, or the patient experience, that will only be magnified once you’re responsible for the success of the practice. Even more so as you expand your patient roster and bring on admin staff and clinicians.
Is your EHR designed to fit your unique needs and grow with you? Choosing a system tailored for behavioral health can help both your patients and your practice succeed.
Telehealth
Technology plays a pivotal role in any behavioral health practice. As telehealth has become more widespread, more and more patients expect a high-quality telehealth experience. Telehealth should be secure and user-friendly. Consider the difference between stand-alone and integrated telehealth. An EHR option tailored for behavioral health should include telehealth capabilities, robust data security, and more.
A well-designed EHR software enhances the overall effectiveness of your private practice by allowing you to focus your time and energy on patient care. Once you’ve identified the tech that will make up the foundation of your practice, it’s time to dive into the other factors at play.
Assessing Your Readiness
Evaluate your experience and expertise in the behavioral health field. Consider both the clinical and administrative aspects. Then, think about what is motivating you. What’s fueling your idea of starting a private practice? How does starting a private practice align with your personal and professional goals?
Take a look at our Business Plan Template. If you can fill most or all of it out, you’re probably read to move on the next steps.
Legal and Regulatory Obligations
Navigating the legal landscape is critical for a private practice startup. Review legal structures, such as a sole proprietorship, partnership, or LLC, and choose one based on your goals and risk tolerance. In addition, be sure you understand licensing requirements, explore necessary insurance coverage, and plan for accreditation standards specific to behavioral health practices. Achieving accreditation from a reputable organization validates the quality of your services and enhances the credibility of your practice.
- Licensing: Different states may have different licensing requirements for behavioral health practices. Ensure compliance with regulations relevant to your location.
- Insurance Coverage: Evaluate the types of insurance required for a private behavioral health practice. Malpractice insurance can be crucial, but also consider general liability insurance and property insurance.
- Accreditation Standards: Depending on your specialization, accrediting bodies may have specific standards. Familiarize yourself with these to ensure your practice meets any necessary benchmarks.
Considering each of these areas protects your patients and your practice. Following legal and regulatory practices gives your patients certainty that you maintain a high standard of care, adhere to ethical guidelines, and prioritize their well-being.
Financial Planning and Budgeting
A detailed financial plan lays the foundation for starting a private practice. Without careful financial management, your practice may face hurdles or complications. A thoughtful budget can provide a roadmap for efficient operations and sustainable growth.
Outline your startup costs: office space, utilities, equipment, furniture, and more. Don’t forget to allocate funds for technology, such as an EHR, and supplies for a high-quality telehealth setup, such as webcams and headphones. An initial marketing push to establish your practice in the community could include a professional website, local advertising, and networking events to help build your client base.
When it comes to staff, consider the roles you will hire for. In addition to determining competitive salaries and benefits for therapist or other roles, factor in costs related to hiring. These could include recruiting, background checks, and training.
Marketing and Branding
To establish your presence, especially when starting out, you need a strong marketing strategy. What is unique about your practice? What needs do you fulfill that other practices don’t? Determine what makes your practice stand out from others as part of creating a unique brand identity. This will help you stake out a strategic approach to marketing, so you can get your message in front of the right audience.
Once you’ve determined how you want to position yourself, and who your target audience is, your next step is to get your message out. An effective and informative website, optimized for search engines, is important. Beyond that, a social media presence and regular blogging enable you to raise awareness of your practice and build credibility and authority. Emails and newsletters help you stay in touch with current or prospective patients.
Your online presence could also include joining local directories, participating in conversations with other behavioral health professionals, and reviews posted by patients. Effective marketing is key to attracting clients and establishing a positive reputation in your area.
In addition, you’ll need a solid process for managing prospective patients. Determine how you want to collect information and where to put forms. Consider that this will be patients’ first direct contact with your practice, so it needs to be easily accessible and convenient for them.
Patient Experience and Engagement
In all of healthcare, but especially behavioral health, the patient experience is crucial. Creating a positive and supportive environment builds trust and facilitates effective treatment. Personalized care plans, effective appointment reminders, and user-friendly feedback systems all contribute to a positive patient experience.
Individualized care that takes a patient’s preferences and needs into account enhances the therapeutic relationship and makes better outcomes more likely. This can even extend to automated appointment reminders. Some patients may prefer more reminders than others, some may only want texts—reaching out to patients in a cadence and method that work for them reduces no-shows. Engaged and satisfied patients are more likely to become loyal clients and contribute to the growth of your practice.
Compliance with privacy and confidentiality regulations safeguards patients’ sensitive information, providing a secure environment for open communication.
Entrepreneurial Support and Resources for Starting a Private Practice
Starting a private practice is an entrepreneurial journey, and it can be smart to seek support along the way. There are many options available for inspiration, guidance, and more:
- Professional Associations: Behavioral health associations provide you with access to a network of experienced professionals. These associations can have online or in-person events, mentorship programs, and other offerings.
- Business Incubators: Look for local or virtual business incubators that cater to healthcare startups. These can provide mentorship, networking opportunities, and other resources.
- Continuing Education: Attending workshops, webinars, and conferences keeps you updated on industry trends and helps you connect with peers.
- Government Resources: Check for grants, loans, and support programs designed to help small businesses and entrepreneurs in the healthcare sector.
With careful planning, dedication, and attention to common challenges, you can establish a successful new behavioral health practice. Thorough research and planning can help you build a solid foundation, while collaboration ensures you have support along the way.
References / Sources
https://www.irs.gov/businesses/small-businesses-self-employed/business-structures
https://cphins.com/what-is-professional-liability-insurance-for-mental-health-providers/
https://www.sba.gov/funding-programs/loans/7a-loans
