Clinicians 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 taking on the roles of both behavioral health provider and entrepreneur, it is important to consider all of the behind-the-scenes work required.

Defining a 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 and most important questions a behavioral health provider must answer is, “Do I need a new EHR?” The electronic health record (EHR) system serves as the backbone of any behavioral health practice. Whether launching a new practice or branching off from an existing one, the answer to this question can significantly impact the success of the new venture.

Start by thinking about technology that supports a practice.

An EHR should centralize and streamline many of the administrative tasks involved in launching a private practice. Functions such as scheduling, appointment reminders, billing, insurance verification, and collaboration with other members of a patient’s care team are all made more efficient through a well-designed EHR. Secure online portals also allow patients to access their health records, view test results, complete tasks, and communicate with the practice.

For clinicians currently part of a group practice who are considering starting their own, it is essential to evaluate the EHR they are currently using. Does it meet their needs? Will it continue to serve them well in a solo or independent setting? While it may be tempting to stick with a familiar system, the challenges of learning a new platform must be weighed against potential long-term benefits.

If the current EHR presents issues such as difficulties with documentation, billing inefficiencies, or a poor patient experience, those problems are likely to become even more pronounced when the practice’s success rests solely on the provider. These challenges may intensify further as the patient base grows and new staff, including administrators and clinicians, are added.

Choosing an EHR specifically designed to meet the unique needs of a behavioral health practice can be a critical factor in supporting both patient care and long-term business success.

Telehealth

Technology plays a pivotal role in any behavioral health practice. As telehealth has become more widespread, an increasing number of 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 a private practice by allowing clinicians to focus time and energy on patient care.

Assessing readiness

It is essential for behavioral health professionals to assess their experience and expertise in the field, taking into account both clinical and administrative aspects. They should also reflect on their motivations—what is driving the desire to start a private practice? Understanding how this decision aligns with their personal and professional goals can provide clarity and direction as they move forward.

Legal and regulatory obligations

Navigating the legal landscape is critical for a private practice startup. Review the various legal structures, such as a sole proprietorship, partnership, or LLC, and select one that aligns with goals and risk tolerance. Additionally, it is important to 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 services and enhances the credibility of a practice.

• Licensing: Different states may have different licensing requirements for behavioral health practices. Ensure compliance with regulations relevant to a location.
• Insurance coverage: Evaluate the types of insurance required for a private behavioral health practice. Malpractice insurance can be crucial, but it is also essential to consider general liability insurance and property insurance.
• Accreditation standards: Depending on the practice’s specialization, accrediting bodies may have specific standards. Providers should familiarize themselves with these to ensure their practice meets any necessary benchmarks.

Considering each of these areas protects patients and the practice. Following legal and regulatory practices gives patients certainty that a practice offers a high standard of care, adheres to ethical guidelines, and prioritizes their well-being.

Financial planning and budgeting

A detailed financial plan lays the foundation for starting a private practice. Without careful financial management, a practice may face hurdles or complications. A thoughtful budget can provide a roadmap for efficient operations and sustainable growth.

Outline startup costs, including office space, utilities, equipment, furniture, and other necessary expenses. Do not forget to allocate funds for technology, such as an EHR, and supplies for a high-quality telehealth setup, including webcams and headphones. An initial marketing push to establish the practice in the community could include a professional website, local advertising, and networking events to help build a client base.

When it comes to staff, consider the roles to hire for. In addition to determining competitive salaries and benefits for therapists or other roles, factor in costs related to hiring. These could include recruiting, background checks, and training.

Marketing and branding

To establish a presence, especially when starting out, a practice needs a strong marketing strategy that addresses its unique needs and differentiators. The practice should determine what sets them apart from others as part of creating a unique brand identity.

Once a practice determines how it wants to be positioned and identifies its target audience, the next step is to disseminate the message. An effective and informative website, optimized for search engines, is important. Beyond that, a social media presence raises awareness of the practice, builds credibility, and establishes authority. Emails and newsletters also help providers stay in touch with current or prospective patients.

A practice’s online presence could also include joining local directories, participating in conversations with other behavioral health professionals, and reviews posted by patients. Effective marketing is crucial for attracting clients and establishing a strong reputation.

It is important to establish a reliable process for managing prospective patients. Practices should decide how they will gather their information and where forms will be located. Keep in mind that this is likely their first direct interaction with a practice, so the experience should be convenient and easy to access.

Patient experience and engagement

The patient experience is crucial, especially in behavioral health. 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 increases the likelihood of better outcomes. This can even extend to automated appointment reminders. Some patients may prefer more reminders than others, while some may only want texts. Reaching out to patients in a consistent and methodical manner that works for them can help reduce no-shows. Engaged and satisfied patients are more likely to become loyal clients and contribute to the practice’s growth.

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 practices 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 specialize in catering to health care startups. These can provide mentorship, networking opportunities, and other resources.
• Continuing education: Attending workshops, webinars, and conferences keeps clinicians informed about industry trends and helps them connect with their peers.
• Government resources: Check for grants, loans, and support programs designed to help small businesses and entrepreneurs in the health care sector.

With careful planning, dedication, and attention to common challenges, clinicians can establish a successful new behavioral health practice. Thorough research and planning can help establish a solid foundation, while collaboration ensures that proper support is provided throughout the process.

Ram Krishnan is a health care executive.