Starting a practice
How to start a group therapy practice
Pivoting to a group-based model can give you the opportunity to help more clients, gain a sense of community, and even earn more money.
December 9, 2024 • Updated on November 14, 2025
6 min read
For some therapists, the business side of private practice feels like a necessary evil. Others realize they’re good at, and even enjoy, the entrepreneurial component of owning a therapy practice. If that’s the case for you, you may want to consider expanding your business by opening your very own group practice.
There are a lot of good reasons to pivot from solo practice to a group-based model, including the opportunity to help more clients, gain a sense of community, and even earn more money. But as with any business venture, you’ll want to make sure you understand the responsibilities and steps required to start a group therapy practice.
Below, learn more about what the pros and cons of a group therapy practice, and what it takes to open one, according to a group therapy practice consultant.
What is a group therapy practice?
A group therapy practice is a business in which multiple psychotherapy providers work together to provide mental health services. Group practices can be structured differently. Some practices hire therapists as W-2 employees and pay them salaries. Other practices may contract with therapists as 1099 independent contractors and pay them on an hourly basis.
In either case, group therapy settings are typically collaborative environments where therapists can work together to support clients.
How to know if you should start a group therapy practice
Starting a group therapy practice isn’t for everyone, but a few signs can help you determine if you’re ready to expand. One important sign: You’re unable to keep up with the demand for your services. “If you’ve been operating on a waitlist for a while, adding more therapists to your practice can help meet the demand,” says licensed therapist Grace Dowd, who owns a group practice in Austin, Texas.
Starting a group practice may also be a fit if you’re interested in the business and administrative side of therapy, Dowd says. If you own a group practice, you’ll have different responsibilities. Managing a team of clinicians and marketing your practice, for example, may mean seeing fewer clients or eventually not seeing clients at all.
Lastly, consider your long-term vision and goals as a mental health provider. Maybe you just like to collaborate with others when you work, or you’d appreciate the support of colleagues in your practice. Or perhaps you're inspired to make mental health care more accessible in your area or mentor the next generation of therapists, both of which you can accomplish by adding more therapists to your practice roster.
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How to find therapists to hire for your group practice
If you’re taking steps to expand your practice, it’s important to identify your values as a therapist — and to shape your practice around those values. For example, if you’re passionate about serving BIPOC individuals or making mental health care affordable with sliding-scale fees, then you’ll want to find therapists who share your passion and have the expertise to match it.
To find like-minded therapists to bring on board, you can post on your own website and job websites like LinkedIn or Indeed. Local colleges and universities often have job boards, so if there’s a graduate program near you, consider posting your opening. You can also network with colleagues or former classmates who work in the mental health field to find out if they know anyone you could hire.
In your posts, be specific about what you’re looking for — not just in a candidate’s education and experience, but their goals and interests as therapists. That way, you can more efficiently identify whether someone would fit well in your practice before meeting them in person.
During the interview, get a sense of the individual’s personality and communication style and ask any questions that will help you determine if they’d be a good candidate for your practice. “Find out what hours they’re available to work, if they can market themselves and network, and if they’re willing to learn and grow with your team to meet the demand for therapy,” suggests Dowd.
Tips for starting a group therapy practice
Specific steps for starting a group practice vary depending on your state, licensing body, and the type of therapists you’re bringing on. But in some ways, the process is similar to starting an individual practice, says Matthew Evans, owner of the Texas-based group practice Starlight and a group practice consultant.
1. Make a business plan
You’ll need to consider business steps like obtaining a business license, managing your finances, marketing and networking.
2. Select the right business entity
As for your business entity, if you’re employing other people, you’ll need to structure your business as a corporation rather than a sole proprietorship. Every state is different, but Evans recommends choosing an entity that protects you from liability.
“As a group practice owner, your license, income, and reputation are attached to what your team does, so there’s more risk involved,” he says. (To that end, as in a private practice, you’ll definitely need liability insurance as a group practice owner.)
3. Decide how to structure your business.
It’s also important to decide how you want to structure your business (for example, if you want to hire employees or contractors), and how you’ll handle marketing (whether you’ll manage it or if the therapists will be responsible for finding their own clients).
4. Consider your ideal caseload
You’ll also need to carefully consider whether you’ll continue seeing the same number of clients, if you’ll see fewer clients, or if you’d like to focus on running the business and supporting your team of clinicians.
“It can be difficult to work with a full schedule while expanding into a group practice, so you’ll need to decide if you’ll cut back on that work,” says Evans. “Everyone has a different level they can tolerate as far as the mental load that goes into the work.”
5. Join insurance panels.
Accepting insurance is a great way to grow your client base, as it makes therapy more affordable and attainable. If you don’t work with insurance payers already, determine a few companies you’d like to work with. As leader of your practice, depending on the structure of your business, you may be responsible for credentialing employees.
Taking the leap to start a group therapy practice can be a lot of work. But taking the right steps can help set you up for success from the beginning, ultimately ensuring you can meet your goal of helping more people on their mental health journeys.
6. Get on the same page about compliance.
Therapists must adhere to a number of requirements, including HIPAA and billing compliance, to provide the best care possible. As a group practice, it’s important to implement an effective compliance program. This way, every staff member is on the same page about how the practice approaches topics like patient privacy and accurate billing. Adhering to compliance standards is an important part of patient care, and repeated non-compliance by one or a few members puts the whole group practice at risk.
FAQs about starting a group practice
What are the benefits of running a group practice?
Running a group practice can be beneficial to you (and the people you’re helping) for several reasons. “As a solo therapist, you may have to turn away clients,” says Evans. “In a group practice, you can keep referrals in-house as you bring clinicians on.”
Community is another major perk of working with other clinicians. Solo practice can be lonely, and you may miss opportunities to mentor other therapists, get advice on your cases, and build relationships with people who can empathize with the highs and lows of the mental health profession.
“Sharing expertise also helps you and your clinicians build new skills as providers,” says Evans. “Someone who is brand new in the industry can learn from someone with much more experience.”
Lastly, a group practice can also be financially beneficial (but Evans notes this part can take time). Business models for group therapy practices vary, but your earning potential can eventually grow if you’re earning money from more therapy sessions than just your own.
What are the responsibilities of a group practice owner?
As the owner of a group therapy practice, you’ll inevitably have more responsibility than if you’re working in a practice by yourself. Rather than working on your own and managing only your caseload, you’ll be tasked with managing a team of people who ultimately represent your practice.
Your exact responsibilities ultimately depend on the model of your practice, explains Evans.
If you hire clinicians as W2 employees, then you’ll be responsible for all the components of hiring and managing employees, such as human resources, payroll, and benefits. These are important decisions that you should discuss with your legal and accounting advisors.
You’ll also need to decide whether you’ll be responsible for marketing and finding clients, or if that responsibility will fall on your therapists.
Evans adopted a model in which he handles marketing, filling and managing his therapists’ caseloads through Headway. “We take away the administrative burden so therapists can focus on being therapists,” he says.
As an owner, you’ll also want to ensure that your providers are operating compliantly, and billing and documenting their care appropriately: If a group’s employees or contractors commit fraud, waste, and abuse violations, the owner could be held liable.
How much does a group therapy practice owner make?
As a group therapy practice owner, there is the potential for you to eventually make more money. Evans says the first year or two of a group practice is usually less financially stable, but as you hire clinicians, you may be able to draw in an extra $30,000 to $40,000 (for example) in additional income each year.
Exactly how much you earn will depend on factors such as the number of therapists in the practice and the structure of your business — and, of course, how well you manage said business.
Earning potential is also dependent on whether you continue seeing your own clients, but Evans emphasizes there are pros and cons to this setup. You can possibly make more money if you continue therapeutic work, but you may also lose sight of important business practices essential for stable passive income.
Where can group practice leaders find community and get advice?
There are a wealth of resources available for group practice leaders — here at the ones you should know about. Additionally, Joe Sanok, a former private practice therapist, runs a business built on helping other clinicians manage the administration of mental health care and find community. His brand Practice of the Practice, offers webinars, conferences, e-courses, a podcast, and more. Those in search of community can also head to The Group Practice Exchange, which helps social service professionals sharpen their business and practice management skills. For advice, AuDHD clinician Patrick Casale offers coaching services for mental health professionals trying to build out their own practices, with specialized offerings for neurodivergent business owners.
Start your group practice with Headway
At the end of the day, starting a group practice involves a lot of trial and error. Headway is here to partner with you on the journey into group practice. We’re a total practice support system, offering benefits including fast and free credentialing for your whole team, enhanced reimbursement rates for all providers, guaranteed bi-weekly payments, insurance and billing support, and a free EHR. Let us handle the behind-the-scenes details so you can focus on building your business — and helping more people.
This content is for general informational and educational purposes only and does not constitute clinical, legal, financial, or professional advice. All decisions should be made at the discretion of the individual or organization, in consultation with qualified clinical, legal, or other appropriate professionals.
© 2025 Therapymatch, Inc. dba Headway. All rights reserved. No part of this publication may be reproduced without permission.
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