Opening a New Mental Health Practice [Video]

What are the top three legal concerns for mental health professionals who want to launch an independent practice? In this video, Managing Partner Erin Jackson gives a brief rundown.


I want to open a new practice! That’s a really common thing that we hear from psychotherapists, psychologists, LCSWs, and other mental health practitioners. I’m Erin Jackson with Jackson LLP Healthcare Lawyers.

So what are the top concerns you need to focus on when you’re opening a new practice? The first thing we usually recommend is a corporate entity. That is an LLC, a PLLC, a PC, or a corporation, depending on your state and your licensure. That’s what will dictate what type of corporate entity you can have. Really, a corporate entity as a way of limiting liability, and it serves other purposes as well that we’ve discussed in other videos.

(View our related video, “Do I Need An LLC or an S-Corp?” or read the related blog, “Should I Form an LLC? FAQs for Healthcare Practices.)

The second concern is HIPAA. HIPAA and state privacy laws are a huge concern for mental health providers, where privacy is of the utmost importance. A proper HIPAA policy complies with HIPAA’s Privacy Rule, Security Rule, and breach notification requirements. And that includes a slew of logs and forms that allow you to fully comply with the law. We also recommend that you have a state-specific policy that ensures that you’re complying with your state’s medical privacy laws.

The third big thing that we would like you to focus on when you’re opening a practice is your intake forms. Now, some providers like to prepare their own and send them to us for review. But really, the most cost-effective and efficient way of doing it is for us to prepare them — not the demographic or clinical data, but really the legal part. And what we do is address things like proper payment, compliance with holding credit cards, things like that, privacy, informed consent, and then most recently, the good-faith estimate and the requirements associated with that.

(View our related video, “The No Surprises Act: What It Means for Independent Healthcare Practices)

So if you’d like help opening your new practice or you have questions about any of these topics, please reach out to our office if you’re planning to operate in any of the states where we’re located.

This blog is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. This blog should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.

Free Attorney Consultation

Book Now
Skip to content