Therapist Guides

Solo vs. Group Practice: How to Decide What’s Right for Your Career

Explore the pros and cons of solo and group therapy practices to decide which path is the right fit for your career goals, finances, and lifestyle.

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One of the most significant career decisions a therapist will make is whether to build a solo practice or join a group practice. Both paths offer unique opportunities and distinct challenges. The right choice depends entirely on your personal and professional goals, your tolerance for risk, and the lifestyle you want to create.

This guide explores the pros and cons of each model to help you make an informed decision. No matter which path you choose, having the right tools is essential. A flexible EHR like ClinikEHR is designed to support both solo practitioners and growing group practices with scalable, intuitive features.

The Pros of Running a Solo Practice

Going solo is the ultimate entrepreneurial path for a therapist, offering maximum freedom and control.

  • Complete Autonomy: As a solo practitioner, you are your own boss. You decide your schedule, your fees, your ideal clients, and your therapeutic approach. Every decision—from the color of your office walls to the services you offer—is yours.
  • Full Control Over Finances: You keep 100% of the revenue you generate (after expenses). This can be financially rewarding, especially as your practice becomes established.
  • Lower Overhead and Simplicity: Starting a solo practice often requires less initial capital. Your administrative needs are simpler, and you can operate with lean overhead, especially if you start with a telehealth-only model.

The Challenges of Going Solo

With great freedom comes great responsibility. The solo path means wearing many hats, from clinician to marketer. For tips on the marketing side, our post on how to get therapy clients online can be a great starting point.

  • You Are the Entire Administrative Team: Marketing, billing, scheduling, and bookkeeping all fall on your shoulders. This can be isolating and can take significant time away from clinical work.
  • Limited Income Scalability: Your income is directly tied to the number of hours you can work. There’s a natural ceiling on your earning potential unless you diversify into other income streams.
  • Isolation and Lack of Collaboration: You miss out on the built-in peer support, case consultation, and camaraderie that come with a group setting. You can find support through peer consultation groups, which is highly recommended for solo practitioners. The ACA offers resources for finding such groups.

The Benefits of a Group Practice

Joining or forming a group practice can provide a powerful combination of support, stability, and growth opportunities.

  • Shared Resources and Overhead: In a group practice, costs for office space, administrative staff, and marketing are shared, reducing the financial burden on each individual therapist.
  • Built-in Referral Stream: One of the biggest advantages is the internal referral network. If a client isn’t a good fit for one therapist, they can be referred to a colleague within the practice, keeping the client within the group.
  • Collaboration and Support: You have a built-in community for case consultations, professional development, and mutual support. This can be invaluable for clinical growth and for combating burnout.
  • Easier Insurance Credentialing: Group practices often have an easier time getting paneled with insurance companies, and an administrator may handle the entire credentialing process for you.

The Challenges of Group Practices

While a group setting offers many benefits, it also involves compromise.

  • Less Autonomy: You will have less control over practice-wide decisions, from the EHR system used to the marketing strategies employed.
  • Revenue Splits: You won’t keep 100% of your earnings. A portion of your revenue will go to the practice to cover overhead and administrative costs. The split can vary widely, so it’s crucial to understand the financial model before joining.
  • Management and Interpersonal Dynamics: A group practice is a business with multiple stakeholders. Disagreements over policies, finances, or clinical approaches can arise. The Small Business Administration (SBA) offers resources on managing a small business team.

How to Decide Which Is Right for You

There’s no single right answer. Reflect on these key areas:

  • Your Career Stage: Are you a newly licensed therapist who could benefit from mentorship and a steady client load? A group practice might be ideal. Are you an experienced clinician with a clear vision and a desire for independence? Solo practice could be calling.
  • Your Financial Goals and Risk Tolerance: Do you prefer a predictable income stream (common in some group models) or are you comfortable with the fluctuating income and financial risk of building a business from scratch?
  • Your Desired Lifestyle: How much time are you willing to dedicate to administrative tasks? Do you thrive in a collaborative environment or do you prefer to work independently?

Tools That Support Both Solo and Group Models

Whether you’re a solo practitioner or part of a large group, your EHR should be able to adapt to your needs. ClinikEHR is built to scale:

  • For Solo Practitioners: Our platform is affordable and provides an all-in-one solution for notes, billing, and telehealth, automating tasks to save you precious time.
  • For Group Practices: ClinikEHR offers robust features for group management, including customizable roles and permissions, centralized billing, and reporting tools that give practice owners visibility into the health of the business.

Further Reading

Conclusion: Choose the Path That Aligns With Your Vision

Both solo and group practices offer rewarding career paths. The best choice is the one that aligns with your professional vision, financial comfort level, and personal work style. Take the time to assess your strengths and priorities, and choose the model that will empower you to do your best work.

No matter which path you choose, ClinikEHR is here to support you.

Learn more about our flexible features that are perfect for both solo and group practices. Start your free trial today to see how our platform can help you build the practice of your dreams.

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