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Graduate Students Contemplating Starting an Independent Practice: Reality or Fantasy?

Mike Gallardo, MA
Division 42 Student/New Professional Representative

As most graduate students progress through their training in psychology, they soon begin to realize that a core component for many of them is missing: How to start and successfully maintain an independent practice. Many students get introduced to managed care as a reality and might become dismayed by such a reality. For many students, without the proper knowledge and guidance, the thought of private practice may become just a fantasy rather than a reality.

Division 42, APA’s Division of Independent Practitioners, realized that many students were not properly prepared to graduate, become licensed, and eventually begin an independent practice. APAGS and Division 42 recently collaborated to establish a mentoring listserv that is open to all students and professionals wishing to be mentored into private practice (to subscribe to the Mentors listserv, send a message with the words "subscribe mentors" in the body of the message, without the quotes). Some of the questions and issues discussed over this list include, but are not limited to:

  1. What is the future of private practice?
  2. Should I do a post-doc or a psychological assistantship?
  3. How do I acquire an office and get referrals?
  4. Which insurance companies should I try to join, or should I join any at all? Are their restrictions for psychologists who wish to join managed care panels?
  5. What are the licensing laws? What are the appropriate steps to take to become licensed?
  6. Are there informed consent and ethical guidelines that I need to pay particular attention to in a private practice or if I’m on a managed care panel?
  7. How does one obtain business knowledge necessary to successfully run a private practice?
  8. What are the appropriate steps to take to become licensed?

It seems that more and more students today are graduating without the proper knowledge to begin an independent practice. There are also many different perspectives about the feasibility and viability of having a private practice, which can sometimes confuse students. If private practice is something you want to pursue, or learn more about, joining Division 42 as a student affiliate can help. For the past five years, Division 42 has focused on strategies and resources to help practitioners thrive in practice without being diminished by managed care. In fact, the division offers a variety of useful pamphlets and educational videos regarding this topic. If you are interested in learning more about Division 42, visit their Web site at: www.division42.apa.org

Marketing Tips

Marketing oneself can be very a difficult task. Here are some marketing tips that have been provided by psychologists over the Mentors listserv. (Note: None of the tips offered below are intended to constitute legal advice. Psychologists and those in training are urged to consult with their attorney before entering into any form of contract negotiation.)

  • Build a reputation that demonstrates competence and respect. This can be the most important aspect to maintaining a practice.
  • Consider who your likely referrals might be. Once you can identify referral sources and your consumer group, you can offer to provide presentations/talks in the community to increase your exposure and build a reputation as an expert in a particular area. One example might be to provide in-services (trainings) to nursing home staff on how to identify symptoms of depression or how to respond to aggressive patients (Of course, some types of training should be provided by licensed psychologists and both students and new psychologists preparing for independent practice must ensure that any service they provide is delivered within their scope of licensure and competence).
  • Identify all of the possible settings in which you could provide services and then begin tailored outreach efforts that are setting-specific.
  • Clearly identify and cultivate your niche or specialty area. If you can identify yourself as someone who can provide services that are needed or that no one else is currently providing, you will have a strong starting point from which to build.
  • Join an established full or part-time practice. Be cautious when signing contracts. It is best to have your attorney read the contract first. Remember, you can negotiate. You don’t have to accept the terms of the contract as written. Working in a solo private practice can be very isolating. However, working in a group practice keeps you connected to your colleagues and it helps with ensuring that you are up-to-date regarding practice issues, while reducing the likelihood of ethical violations that can happen when one is isolated.
  • Develop a business plan. Every plan should be individualized and it should carefully outline the parameters of your practice.
  • Your private practice is a business. There are challenges in maintaining an effective private practice when dealing with paperwork, confidentiality, fee collecting, and staffing issues, while maintaining the highest level of care.
  • Join your local, state, and national psychological associations. This is essential, because it connects you to the psychology world at large, as well as your colleagues. This is probably the best way to connect with professionals in the field. APAGS and your local and state psychological associations help you develop your professional identity, as well as provide guidance and resources about how to plan for your career.
  • Joining managed care panels can be useful, particularly when starting out. Division 42 offers valuable advice about doing this without negating your goals. For example, consider offering a sliding fee scale, obtain part time jobs while you build your practice, think about opening an office in a rural or less populated area, and find ways to broaden your practice to include testing evaluations, consulting, etc.
  • Clearly identify your goals for a post-doctoral internship or psychological assistantship. Decide what states you would like to become licensed in, look at their hours requirements for licensure, and negotiate your post-doctoral experiences accordingly. It can be very difficult to obtain hours for licensure, so the earlier you start investigating licensure, the better. Each state varies in the number of hours and time required to obtain a license. Visit your state psychological association Web site for information on how to contact the appropriate licensing board in that state to learn about their licensure requirements.

There are innumerable issues to consider when prepare for and obtaining licensure, as well as beginning a practice. It can become overwhelming at times. My advice? Remember what originally attracted you to psychology and wanting to practice, and make decisions accordingly. Apathy towards the field and independent practice is an increasing feeling among some. However, I encourage you to stay focused and reflect back to reasons that you chose this field. Stay true to yourself and your goals. The opportunities are endless. If you can identify what you want, you can get it. If you decide that you truly want to practice independently, use Division 42 as a resource. They are eager to mentor students and new psychologists because they remain passionate about private practice and the members have been successful in maintaining their practices.

This article first appeared in the Spring 2001 Edition of the APAGS Newsletter, Vol. 13(2)

 


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