nI get this question quite frequently, When did you decide to open a group practice? Then the next question I’m asked is Can you help me decide? Having a group practice was always the way I was going to build my business. I knew from the start that I didn’t want to create a solo practice. I knew that I thrive on interaction and consultation with others. I knew I wanted a combination of licensed and unlicensed clinicians within my practice. I love teaching and seeing students/interns learn new concepts is exciting. I knew that if I created a group practice, I could have more teaching opportunities and gain the ability to give back more to the therapist community. Additionally, as a group practice, we could give more to our local community.
When I was a young therapist, I had fantastic mentors, and I felt that reaching back and helping others get licensed is part of my practice values.
I also knew that I didn’t want to sit only in the therapist’s chair. I wanted to extend my reach within my community and having a group practice allowed for other specialists to be housed under one roof. As I built by a group practice, I looked for different licensures, and I hired a combination of LCSWs, MFTs and PCCs and their various associates under each license (post master’s). I often use the word “Cross-pollination.” I define it as having different disciplines, theoretic orientations and specialties all converging in one room to talk. For me, that is the synergy of the field of therapy.
It’s like when the Justice League all come together to save our planet from the supervillains.
I feel so lucky as I get to do this almost weekly with my team. Cross-pollination is the power to heal2.
Being a solo practitioner is the right decision for many therapists. That business model works very well for many therapists. However, at some point in your career, you may want to expand your business by adding more clinicians. Conversely, before you do, take time to think about your why for wanting to go into private practice. Has this changed? Many clinicians go into private practice to have the freedom of being their own boss, setting their hours, making the decisions within the workplace and working with only the clients they find interesting.
For other therapists opening and managing a group, practice does not sound appealing at all Just thinking about all the additional needs like a larger space, higher associated costs, more marketing, personal issues, payroll and state/federal taxes, etc., makes many therapists turn and run. I get that I really do. I like being the boss of me a lot plus I have 15 other people I am the boss of and somedays I don’t want to be the boss of anyone but me. Yet, at some point you may think about expanding your services, you may want more income, or you want other therapists others in your office, or you more influence within your community. There are many reasons for making the jump from a solo practice to a group practice, and only you can decide when and if that time is right.
To help lay down some foundation, let’s take a look at points to consider of solo practice Vs. group practice.
Solo Practice
- Easy Tax structure
- Less Overhead
- Need for less space
- Good marketing plan
- Less wear n’ tear on furniture
- Can make decisions without consulting
- No need for business partners
- No need for a contract
- You select your hours
- It’s your office no juggling of usage
- Less insurance & less costly
- There is no in-house overflow of clients
- All financial risk is on you
- A Smaller number of people in the community you can serve at one time.
- Office is less chaotic but can at times be lonely
- Need to make more of an effort to have case consultation
- Fewer startup costs
- Must arrange outside office coverage for vacation or extended sick time
Group Practice
- More complex tax structure
- Higher overhead
- Need for more space or at least coordination of space
- Good marketing plan for multiple therapists
- More wear n’ tear on the furniture
- May need to consult with owners of practice
- Need to find a great business partner(s)
- Contact need for partners that are owners or corporate officers.
- An Understanding who is doing what in the business.
- You may have to juggle times in office or at least coordinate times with multiple staff.
- More insurance needed including worker’s compensation and high amounts of General liability and malpractice.
- In-house overflow of clients
- Spreads financial risk over many therapists
- Larger number of clients you can serve in the community
- The office can be more chaotic but easy ability do a “quick consult.
- Built-in supervision or consulting time weekly
- Higher startup costs
- Built-in vacation or extended sick time coverage
The List
As you can see both lists offer quite a few reasons to stay as a solo practice. However, there are just as many reasons to create a group practice. Part of the decision will depend on your personal preferences, the location of your practice, amount of work you want to do, amount of money you have to invest in your business, the amount of risk you are willing to take and the people you would partner with.
In my next blog, I will talk about the transitional elements you must think about prior to considering moving from a solo practice to a group practice. Once you have the information, you will be able to decide if creating a group practice is something you should create.
© All Rights Reserved 2017, Therapist Practice in a Box, Sherry Shockey-Pope, LMFT