Legal Services for Psychologists

Starting and operating a psychology practice involves decisions about business structure, privacy practices, patient documentation, contracts, and other legal requirements that affect how the practice operates.

At Jackson LLP, our attorneys work with psychologists on the legal and business matters involved in establishing and running independent practices. Our services include entity formation, HIPAA compliance, intake forms, informed consent documents, contracts, and practice policies.

Whether you are opening a new practice, expanding an established business, or adding services, Jackson LLP provides legal counsel tailored to the needs of psychology practices.

Starting a Psychology Practice

Our attorneys advise psychologists on the legal requirements and business considerations involved in launching a practice, including:

• Business Entity Formation: Advising on LLCs, PLLCs, corporations, and applicable ownership and formation requirements
• Practice Policies and Documentation: Drafting and reviewing practice policies and procedures
• Patient Intake Forms: Preparing intake documentation that addresses the practice’s operational and legal requirements
• Informed Consent Documents: Drafting and reviewing forms explaining the nature of services, treatment expectations, relevant disclosures, and patient responsibilities

Business formation and practice requirements vary by state. Our attorneys advise psychologists on the requirements that apply to their practices and the legal considerations involved in choosing a business structure. Jackson LLP serves psychologists in Illinois, New York, California, Texas, and Wisconsin.

HIPAA, Privacy, and Practice Compliance

Psychologists routinely handle sensitive personal information, including assessment results, clinical records, and other confidential materials. Their legal obligations may depend on the nature of the services, the psychologist’s role, the records involved, and applicable federal and state law.

Jackson LLP advises psychologists and psychology practices on issues such as:

• HIPAA and Privacy Compliance: Drafting and reviewing policies, agreements, and operational practices for protecting sensitive information
• Notice of Privacy Practices: Drafting and reviewing notices that explain how a psychology practice uses and discloses protected health information and inform patients of their privacy rights
• Patient Privacy and Consent: Drafting and reviewing patient-facing forms addressing confidentiality, the use and disclosure of health information, and consent to services
• Records Requests and Subpoenas: Advising on the legal considerations involved when patients, attorneys, courts, or other parties request records or assessment materials
• Confidentiality and Disclosure: Addressing competing obligations when a request for information raises privacy, contractual, or legal concerns
• Business Associate and Vendor Agreements: Reviewing agreements with organizations that may access or process protected health information

Psychological testing materials and assessment records may raise additional considerations beyond ordinary records requests. Before responding to a disclosure request, evaluate your legal obligations and the nature of the requested materials.

Jackson LLP recommends establishing privacy practices early in the process of starting a private practice and confirming that your policies comply with applicable law.

Contracts for Psychologists and Their Practices

Psychologists may work independently, join group practices, contract with organizations, or maintain several professional relationships at once. Each arrangement can create different legal and business obligations.

Jackson LLP reviews, drafts, and advises on contracts affecting psychologists and psychology practices.

Employment and Independent Contractor Agreements

Employment and contractor agreements can affect compensation, outside work, termination rights, restrictive covenants, and future professional opportunities. Jackson LLP reviews these agreements and advises psychologists on the terms that may affect their work and business interests.

Agreements With Schools, Employers, and Organizations

Psychologists who contract with schools, employers, healthcare organizations, or other businesses may need agreements that establish the services provided and the responsibilities of each party.

Jackson LLP reviews and drafts contracts addressing scope of work, payment, confidentiality, ownership and use of work product, liability, and termination. The appropriate terms depend on the services involved and the nature of the relationship.

Group Practice and Business Partner Agreements

Psychologists who join or establish group practices may need agreements covering ownership, management authority, compensation, expense allocation, decision-making, and departure from the business. Jackson LLP advises on business structures and contracts that reflect the parties’ intended arrangement and applicable professional practice requirements.

Practice Structure and Business Operations

Ongoing operational decisions can affect every part of an established or growing practice, regardless of the services a psychologist provides.

Jackson LLP assists psychologists with business and regulatory matters, including:

• Practice Expansion: Assessing legal considerations when adding locations, services, or business relationships
• Management Services Arrangements: Reviewing management services organization (MSO) agreements and related business arrangements that separate administrative functions from professional services
• Practice Purchases and Sales: Advising on transaction documents, due diligence, contractual obligations, and practice transitions
• Insurance Audit and Contract Concerns: Assisting with legal issues involving reimbursement disputes, contractual obligations, and business risk

Our attorneys focus on the legal and business aspects of practice operations, so you get legal advice that reflects the nature of your work.

PSYPACT and Multi-State Psychology Practice

Psychologists who provide telepsychology or other services across state lines must understand the licensing and practice requirements that apply to their work. PSYPACT creates an interstate practice pathway for eligible psychologists, but participation does not eliminate every legal obligation associated with practicing in another jurisdiction.

Jackson LLP advises psychologists on the legal and business considerations involved in interstate practice, including:

• PSYPACT Compliance Considerations: Reviewing business and operational arrangements in light of applicable PSYPACT requirements and other state laws
• State-Specific Practice Requirements: Identifying legal considerations that may affect where and how you can offer psychological services
• Telepsychology Operations: Reviewing contracts, privacy practices, and other operational arrangements for providing psychological services remotely
• Multi-State Business Structures: Advising on entity and operational structures when a psychology practice expands into additional states

Psychologists must understand the steps necessary to expand into another state, including the difference between authorization to provide services across state lines and permission to establish or operate a business in another state. These questions may involve separate requirements.

Jackson LLP also addresses state-specific legal considerations affecting multi-state psychology practices operating under PSYPACT.

Forensic Psychology and Independent Medical Examinations

Psychologists conducting forensic evaluations or independent medical examinations (IMEs) often work under agreements with attorneys, insurers, employers, or other organizations. These engagements can differ substantially from traditional clinical relationships, particularly when the evaluation is requested for a legal, employment, or insurance-related purpose.

Jackson LLP advises psychologists on the legal and contractual terms surrounding these engagements, including:

• Engagement Agreements: Defining the scope of the evaluation, deliverables, deadlines, payment terms, and responsibilities of the parties
• Reports and Records: Reviewing contractual provisions concerning report preparation, record retention, access, and disclosure
• Confidentiality and Disclosures: Addressing expectations regarding the use of information gathered during an evaluation and the limits of confidentiality
• Liability and Risk Allocation: Reviewing indemnification, limitation-of-liability, and other provisions that may affect a psychologist’s contractual obligations
• Termination and Disputes: Evaluating provisions addressing canceled evaluations, unpaid fees, disputed deliverables, and the end of an engagement

The terms of an engagement should reflect the purpose of the evaluation and the parties’ respective responsibilities. Review these terms before accepting an assignment, particularly when an organization supplies its own contract.

Reach Out to Our Team About Legal Counsel for Psychologists

Whether you are starting a psychology practice, reviewing your HIPAA policies and patient documentation, or addressing a contract or business arrangement, Jackson LLP provides legal counsel tailored to the needs of your practice.

Jackson LLP works with psychologists, psychiatrists, and other mental health professionals on the business and regulatory issues affecting their work. Our attorneys advise on the legal matters involved in establishing, operating, and growing independent practices.

We offer a free 15-minute consultation and provide a written quote before work begins. Contact Jackson LLP to discuss the legal needs of your psychology practice.

Frequently Asked Questions