Owning a Counseling Practice with Contract Therapists

Want to own your own counseling practice, and create additional income streams by contracting with other mental health professionals?  This can be much more lucrative than doing your own thing by yourself.  The reason is you can charge every contract provider a percentage of their income!  If you have ten professionals working under your business, each billing approximately $6000 per month, that is a total revenue stream of $60 GRAND per month!  This doesn't even include the money you make from seeing clients (which of course you keep 100% of the money and your overhead costs are paid by the contract employees).  Now it takes a lot of time and effort to build to this number, but at least it's an option.  There are opportunities to scale your business and make money even when you are not there.

There are a lot of additional requirements and expenses when creating this type of counseling practice.   Your overhead is greatly increased due to more office space, employing staff (receptionist, billing specialist, office manager, etc.).  It is also a lot of WORK to develop your practice.  You will be the face of the practice and expected to market and grow referral resources.  One of the big things your contract employees will be expecting is referrals.  They will also want timely billing and payment.

The good news is you can start small and grow from there.  If you have grown beyond the amount of referrals you can handle (this is a good sign you should think about taking on another therapist- maybe part time) , reach out to your community to find a contract therapist that would be happy to work under your umbrella and pay you a percentage.  Part time therapists (there are a lot of these), new therapists who have just earned full licensure, and professionals who are tired of running their own practice are typically available in most areas as possible contract providers. 

Before taking on contract providers, I would recommend paying an attorney to draft a legal agreement to use when contracting with another person.  This should be a clear and concise document, outlining the expectations of both parties. 

If interested in pursuing this further, I would recommend finding a therapist that runs this type of practice in a noncompeting area.  After you find the right person, contact them and offer to pay them a consulting fee to teach you how to do what they do.  My guess is they will be more than happy to have you pay them to teach you (again, only contact someone from a noncompeting market).