Starting Your Own Private Practice | A Step-by-Step Guide
Starting your own private practice is exciting, but it can also feel overwhelming. There’s a lot to think about beyond seeing clients: paperwork, legal setup, billing systems, marketing, and more. Many providers get stuck in the planning phase because they don’t know where to start or what steps to take. At Elite Billing Service (EBS), we’ve worked with many providers who felt paralyzed by the complexity. We help you simplify the process, get clarity, and move forward with confidence. Whether you’re just tossing around the idea or ready to take the leap, here’s a clear breakdown of what to consider when starting your private practice—and how EBS can help.
1. Get Clear on the Basics
Before you dive in, take time to answer some foundational questions:
Were you planning on taking insurance or being private pay, or a mix of both?
If taking insurance, do you know which companies you want to contract with—and are they accepting new providers?
Do you know what your patient demographic will be?
Have you thought about your fee schedule for both insurance and private pay?
Will you offer a sliding scale?
Do you know what billing software you’ll use and what your budget is for it?
What hours will you work? Evenings? Weekends?
Will you see patients in person, via telehealth, or both?
If seeing patients in person, have you found office space and determined a monthly budget for rent?
Have you considered marketing? What businesses or referral sources can you connect with?
Will you accept EAPs?
What phone and secure messaging systems will you use?
Answering these questions helps shape your business plan, budget, and overall strategy.
2. Business Registration & Legal Considerations
Registering your business and ensuring all legal aspects are in place is crucial for the success of your practice. This includes everything from creating your business structure to making sure you have the necessary licenses and insurance coverage.
You'll need to:
Choose a business structure (usually a Sole Proprietorship, LLC or S-Corp)
Register your business with the state
Apply for an EIN
Get any required business licenses
Set up malpractice and liability insurance
How EBS Helps:
We don’t offer legal services, but we’ll guide you toward healthcare attorneys and professionals who specialize in this space. You’ll avoid costly mistakes and be sure your foundation is solid.
3. Insurance Credentialing & Fee Schedules
Choosing which insurance plans you’ll accept and setting your fee schedule are crucial steps in building a financially sustainable practice. It’s important to understand local insurance rates, reimbursement schedules, and how your fees will impact your cash flow. If you plan to take insurance, you’ll need to get credentialed with each payer, and each one has its own process and timeline. It can take 60–180 days to get paneled.
Questions to consider:
Have you thought about your fee schedule for insurance and private pay?
Were you planning on having a sliding scale?
Do you know what billing software you will use and what your budget is for that?
How EBS Helps:
We handle credentialing on your behalf, communicate with insurance companies, and follow up until you’re in-network and ready to bill. We also provide insights into payer behavior, fee schedules, and what contracts to accept or negotiate.
4. Choosing Your EHR & Billing Software
As you start your practice, selecting the right EHR (Electronic Health Record) and billing software is essential for smooth day-to-day operations. These platforms help streamline your patient management, insurance claims, and billing processes.
You’ll need several tools:
EHR and billing software
Telehealth platform
Phone and secure messaging system
Document storage and intake forms
Scheduling tools
How EBS Helps:
We help you choose the best platforms for EHR, practice management, telehealth, and billing. We work closely with your front office staff to ensure accurate patient data collection, minimizing claim denials due to incorrect information.
5. Finding Office Space (If Needed)
Finding the right office space is key to creating a comfortable and professional environment for your patients. If you're planning on seeing patients in person, it's important to consider location, office size, and your monthly budget for rent.
Questions to consider:
Do you know what hours you would work, weekends, nights?
If you are going to see patients in person, have you found an office space and what your monthly budget is for rent?
How EBS Helps:
While we don’t directly help find office space, we can assist you by offering guidance and insights during the process, ensuring that you understand how your space will impact your workflow and billing. If you're located in Central California and need extra support, we can also accompany you to help with decisions, billed at an hourly rate.
6. Marketing & Building Your Online Presence
Attracting patients to your new practice requires effective marketing. Whether you're using digital marketing, networking with local businesses, or getting listed in directories, having a clear marketing plan is essential to getting started.
Marketing doesn’t need to be fancy to work. You can start small:
Create a website with Squarespace, Weebly, or WordPress
Set up Google Business Profile
Use social media to share helpful content
Try low-cost Google or Facebook ads
Network with other providers and community orgs
How EBS Helps:
While we don’t handle marketing directly, we provide insights into insurance directories and patient referral strategies. We can also help you optimize the billing process so you’re ready to handle the new influx of patients that come from your marketing efforts.
7. Patient Data Collection & Billing Systems
Once you start accepting and seeing patients, ensuring that their data is collected correctly and that your billing systems are streamlined is essential for smooth practice operations. Inaccurate data can lead to denied claims, which can hurt your revenue.
Your intake process should be streamlined and HIPAA-compliant:
New client paperwork
Insurance verification
Consent forms
Secure intake and messaging
Appointment reminders
How EBS Helps:
If you have front office staff, we work in tandem with them to ensure patient data is collected correctly, minimizing claim denials due to incorrect information. By streamlining your data collection and billing processes, we help you keep operations efficient and your cash flow steady.
8: Handle Financial and Operational Systems
You’ll need to:
Open a business bank account
Use accounting software like QuickBooks or Wave
Track income and expenses
Set aside money for taxes
How EBS Helps:
We don’t offer accounting, but we can help you understand what billing reports to look at monthly and how to use them to evaluate performance.
9: Ensure HIPAA Compliance
Compliance is more than just using a secure EHR. You’ll also need:
Signed BAAs with all vendors
Password protection and device security
Secure document storage
Optional HIPAA training (if you ever hire)
10: Plan for Growth or Emergencies
Even if you're starting solo, it's smart to think ahead:
What happens if you’re sick or unavailable?
Do you have backup for telehealth or data issues?
Will you supervise interns or build a group?
Optional: Join Professional Communities
Staying connected can help you build your referral base and reduce burnout.
Join local therapist groups or business groups
Attend community or chamber events
Engage in online therapist communities
Estimated Costs to Start a Private Practice
Item Estimated Cost
Business registration & legal $500–$2,000 (one-time cost)
Insurance credentialing $75/hour (EBS)
EHR & billing software $30–$150/month (solo providers)
Office space rental $1,000–$3,000/month (varies by location)
Self-service website builder $15–$50/month
Google/Facebook ads Optional, $5–$50/day
Accounting/Tax Services $300–$1,000/year (varies by CPA)
Phone & secure messaging system $15–$75/month
Starting your own practice is a big move, but you don’t have to do it alone. EBS helps mental health providers take the guesswork out of the process so they can focus on what they do best: providing care. Whether you're just getting started or need support transitioning from a group to solo practice, we're here to guide, advise, and handle the billing so you can build a practice that works for your life. Thinking about going solo? Reach out to EBS, we’d love to hear your vision and help you make it real.
