Guide to Starting a Telehealth Private Practice
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For therapists considering starting a telehealth private practice, this article breaks down the benefits and steps required for clinicians starting a telehealth business.
Many things have gone fully virtual in recent years, including therapy. Some therapists even opt out of building in-person practices—and instead, solely offer virtual telehealth sessions to their clients.
That said, starting a telehealth private practice is a bit different from starting a mental health private practice that’s in-person—and if you want to be successful at starting a telehealth business, you need the right strategy.
So, what, exactly, does that strategy look like?
Let’s take a look at everything you need to know about starting a telehealth private practice.
The benefits of starting a telehealth private practice
Before we jump into what you need to know about starting a telehealth private practice, let’s cover why you would want to learn how to start a private practice that’s remote to begin with.
Flexibility
Starting a telehealth private practice offers a number of benefits—and the first is flexibility.
“One of the most beneficial parts of a private practice is the flexibility,” affirms GinaMarie Guarino, LMHC, a therapist that has owned and operated a fully remote private practice since 2017.
When your practice is virtual, you have the flexibility to work from home (or any other location)—which can amount to huge time savings and a better work-life balance.
“There are so many time saving benefits packed into a virtual practice that the amount of flexibility over your schedule will naturally allow you to open up and breathe,” says Tyler J. Jensen, LCMHC, a psychotherapist and owner of a virtual practice. “Do you feel like taking a little walk in between clients? Done. Do you and your spouse want to have lunch downstairs during a break? Also extremely easy now.”
Autonomy
Starting a telehealth private practice can also deliver more autonomy than working in an office.
“You create when you want to work, how you want to work, what your office looks like, what tone you want that to bring to a virtual space, as well as taking so much pressure off of you that has been potentially conditioned from an in-office environment of the past,” says Jensen. “When you have all the control, you can take your practice in whatever direction you need or want; embrace that and make it uniquely yours.”
Financial benefits
According to Jenna Brownfield, PhD, a licensed psychologist with a fully remote telehealth practice for LGBTQ+ people in Minnesota, opening a telehealth private practice also has financial benefits.
“You can save on the overhead costs that come with having a physical office,” Brownfield says—like rent, furniture…even your wardrobe!
Client convenience
Going virtual with your practice isn’t just convenient for you—it’s also convenient for your clients.
“A virtual practice is also beneficial for clients,” says Brownfield. “As long as they have access to a stable internet connection, they can receive therapy without the added time of commuting to a therapy office.”
Also, according to Guarino, factors that are outside of your or your client's control also become less invasive. “Weather obstacles, traffic, and more are no longer an issue when providing telehealth,” says Guarino.
Clearly, there are some major benefits to starting a telehealth business. But how, exactly, do you do it?
Let’s take a look at the steps involved in how to start a therapy practice that’s virtual:
Cover the business basics
Setting up a private practice that’s remote is just like starting any other business. This means there are some business basics you need to take care of before you get your practice off the ground.
This includes:
- Choosing a business name
- Choosing a business structure (for example, LLC)
- Filing any necessary paperwork for starting your business (for example, registering with the state)
- Buying a domain name for your website
- Opening a business bank account
Make sure that you check off all of these business basics before you start marketing your practice and seeing clients virtually.
Take care of licensing issues
When you build an in-person practice, you are, by design, seeing clients in the state that you’re licensed in.
But a telehealth private practice is structured differently. Because you’re seeing clients virtually, you have the ability to see clients from anywhere—but that doesn’t mean you have the permission to.
“You may be practicing virtually, but all of the same rules and regulations apply to how you practice,” says Jensen.
More specifically, “you can only practice therapy [in the state] where you are licensed,” says Jensen.
“Make sure you are only offering therapy in jurisdictions where you are licensed,” says Brownfield. “For most therapists, they are licensed to practice at the state-level and can offer telehealth to anyone located in their state,” says Brownfield. “Some therapists now have the option of an interstate option through Psypact, the Counseling Compact, and the Social Work Compact. This allows you to practice across any states participating in your compact.”
So, clients definitely need to be physically located in the state (or states) where you’re licensed in order for you to provide telehealth services for them.
But, what about you, the therapist? Does your location matter?
The answer is: it depends.
According to the American Psychological Association (APA): “Most states clearly consider you to be practicing psychology where the patient is located. Some states also consider you to be practicing psychology where you are located.”
As such, the APA recommends getting legally permitted to practice in both the state that you and your client are in prior to offering telehealth sessions. If you want to explore the option of providing services while in a state where you don’t hold a license, you’ll need to check that state’s board of psychology to see if you’re eligible prior to seeing clients.
Consider the legal implications
Obviously, licensure is a big legal issue for therapists starting a telehealth business. But it’s not the only legal issue.
First, you need insurance.
“Liability insurance remains the same,” says Jensen. “The only difference here is that you may not need any property-based insurance since you are virtual, after all.”
HIPAA (the Health Insurance Portability and Accountability Act) is also another major consideration.
From a legal standpoint (to protect yourself and your clients), you need to ensure that all of your processes—including telehealth sessions, client communications, documentation, and record-keeping—are HIPAA-compliant.
“It is important to use HIPAA-compliant platforms for videoconferencing and transmitting documents,” says Guarino.
Prior to seeing clients, make sure you have liability insurance to protect you from any malpractice claims—and make sure your virtual setup protects client privacy and is compliant with all HIPAA-related rules and regulations.
Choose the right telehealth tools
In order to effectively run your telehealth private practice—and run it in a way that’s compliant with HIPAA—you need the right tools.
So, what tools do you need when it comes to how to start your own private practice that’s remote?
Well, you can find many of the tools you need on a single platform—known as a practice management software, such as SimplePractice.
“An effective practice management software is what allows a virtual practice to live,” says Jensen. “Within this software exists so many key functions to how your practice is run. From billing your clients, to sending them paperwork, writing notes, billing insurance, and getting paid, it all lives here. Without it, you would be setting yourself back countless hours—maybe even days.”
When choosing a practice management platform for running a virtual practice, there are a few key features you’ll want to look for, including:
HIPAA-compliant telehealth
Since you’re launching a fully virtual practice, you need to make sure that any virtual sessions are private, secure, and fully HIPAA-compliant.
A telehealth waiting room
Sometimes, clients will show up for virtual sessions before you do—and because of that, you want to make sure that you have a telehealth “waiting room” that lets them know you’ll be entering the session soon.
Telehealth interaction capability
During a session, there may be things you want to share, assign, and/or visually explain to clients—so look for a telehealth platform that comes equipped with a virtual whiteboard, secure chat, and screen sharing.
Secure client communications
It’s also important to securely communicate and share documents with clients (and vice versa) outside of session—so look for a platform that offers HIPAA-compliant client communication (like a secure client portal).
Multi-user capabilities
If you’re going to be seeing more than one client per session—for example, couples or families—you’ll want to look for a platform that offers that functionality (like being able to add multiple people to a telehealth session, creating a client profile for a couple or a family, or sending documents to more than one person at a time).
Electronic health records (EHR)
You also want your practice management software to act as an electronic health record (EHR), and securely store all of your client’s sensitive health data and information.
Easy scheduling and appointment management
Because you won’t be seeing your clients in person, it needs to be simple and straightforward for them to book an appointment with you online—so look for a platform that offers easy-to-use scheduling and appointment management features (like user-friendly online booking and automatic appointment reminders).
Insurance and billing
You’ll also need a way to easily bill clients, collect payment, and submit and manage insurance claims from your remote office.
Depending on your practice, you might round out your tech stack with other tools, like:
- A bookkeeping or financial management software
- A social media management tool
- A search engine optimization (SEO) tool
- A marketing automation software
Whatever tools you decide to go with, make sure you have a Business Associate Agreement (BAA) in place. “Be sure to collect a BAA from all systems you are working with for your practice, which is needed to satisfy HIPAA requirements as well,” says Guarino.
Design your website
When you’re building a fully virtual practice, you’ll want to capture your ideal client’s attention and show them that you are the right therapist for them. And much of your ability to do that depends on your website.
“Clients need a place to find you,” says Jensen. “You need a well-built website that attracts potential clients over your competition, especially if you are virtual only.”
When designing your website, make sure to:
Choose the right color palette
According to color psychology, different colors can inspire different feelings and reactions—so you want to choose colors that are going to send the right message to potential clients. Many experts agree that blues (which people associate with trust), greens (which people associate with calm), and neutrals (which will help round out the palette) are optimal choices for therapists.
Outline key information about yourself and your practice
Again, your website will play a major role in whether clients opt to work with you—so make sure you’re giving them the information they need to make that decision. This includes information about your professional background, credentials, therapy approach, modalities used, and services offered.
Include options for scheduling
You want to make scheduling an initial session or consultation as easy as possible—so, in addition to your contact details, make sure to include a way to book a consultation or session directly from your website. This is something you can do with the right practice management software.
Market your practice
Now that you have all of your practice ducks in a row, it’s time to get out there and start marketing your practice and finding new clients.
One key thing to keep in mind when developing your marketing strategy? Location.
“A virtual practice offers you location flexibility,” says Brownfield. “It gives you the opportunity to travel while continuing to be there for your clients.”
However, according to Brownfield, “When it comes to marketing a fully remote practice, it helps to still think locally.”
So, what does that look like?
“For both your digital marketing and networking, you want to pick a city or location to establish yourself in,” she says. “Focus your digital marketing efforts, like SEO, on your selected location. Reach out to fellow therapists or allied professionals in that area to network with. Even if you are not physically located there and can't meet with other professionals in-person, you can arrange a virtual meeting with them.”
Bottom line? “People are more open to meeting with someone whom they can relate to,” Brownfield says. “If you are familiar with or living in the area they work, it helps you relate to them.”
In addition to thinking locally—and focusing your marketing efforts on a certain area—some other marketing practices you may want to consider include:
- Google ads
- Therapy directories (like Monarch, PsychologyToday, or Findatherapist.com)
- Networking with other therapists and building a referral network
The more effectively you market your telehealth practice, the more clients you’ll attract to your practice—and the more successful you’ll be at starting a telehealth private practice as a result.
Looking for a printable how to start a private therapy practice checklist? Whether you’re starting a telehealth private practice or an in-person practice, use this checklist to guide you.
How SimplePractice streamlines running your practice
SimplePractice is HIPAA-compliant practice management software with everything you need to run your practice built into the platform—from booking and scheduling to insurance and client billing.
If you’ve been considering switching to an EHR system, SimplePractice empowers you to streamline appointment bookings, reminders, and rescheduling and simplify the billing and coding process—so you get more time for the things that matter most to you.
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