Private Practice Therapist Salary: The Costs Behind Solo vs. Group Practice
One of the most common questions clinicians ask when considering group practice is:
“Why wouldn’t I want to keep 100% of what I make?”
It’s a fair question, and an important one.
When therapists search for information about private practice therapist salary, they are often trying to answer a deeper question:
What will I actually take home, and what will it cost me to get there?
On the surface, solo private practice can look like the obvious financial choice. It can seem like keeping the full fee means keeping more money. And when you compare that to a group practice percentage or split, it can look like a large portion of your work is going to the business instead of back to you.
But the reality is that the percentage isn’t profit.
It’s what funds the infrastructure that allows clinicians to focus on therapy instead of running a company.
I know this because I am the one paying for it.
As the owner of The And Way Therapy, a specialty OCD and trauma group practice in Dripping Springs, TX, I have built this from the ground up. I have made the decisions, absorbed the costs, navigated the legal and billing chaos, and shown up for my clinicians through all of it.
This post is not theory.
It is what I have actually paid for, what surprised me, and what I wish someone had broken down for me earlier in my career.
Private Practice Therapist Salary Is More Than a Number
When people talk about a private practice therapist's salary, they often focus on gross income: session fee, caseload size, percentage split, or hourly rate.
But gross income and actual take-home reality are not the same thing.
A therapist in solo practice may technically keep more of each session fee, but they also carry the cost of billing, credentialing, marketing, legal support, technology, insurance, taxes, consultation, referrals, unpaid admin time, and the emotional weight of running the business.
In a group practice, the percentage split may look smaller at first glance. But part of that percentage is paying for the systems, support, and risk management that make the work sustainable.
So instead of only asking, “What percentage do I keep?” it may be more helpful to ask: “What am I responsible for carrying on my own?”
What Does a Group Practice Actually Pay For?
Liability Insurance and Legal Protection
Every group practice carries general liability insurance, professional malpractice coverage, employment practices liability insurance, and cyber liability insurance. In addition, we maintain ongoing legal counsel for contract drafting, employment law, HIPAA compliance, risk management, and policy development.
What I learned the hard way:
Legal support is not something you call once when something goes wrong. It is something you need continuously, proactively, before the problem finds you.I have spent more on prevention than I ever expected, and I am grateful every time it keeps me and my clinicians protected.
This is not optional. It is the foundation on which everything else is built.
Credentialing, Billing, and Insurance Infrastructure
Insurance is one of the most complex, time-consuming, and emotionally draining parts of private practice.
Group practices handle credentialing with multiple panels, re-credentialing, and CAQH maintenance, claims submission, denial management, appeals, payment posting, and payer compliance.
What I learned the hard way:
I have spent hours on the phone fighting denials, chasing down credentialing gaps, and cleaning up billing errors. I have watched clinicians in solo practice lose thousands of dollars and months of time to the same problems.In a group practice, this burden lives in the infrastructure, not in your lap.
When something goes wrong with a claim, we handle it.
You keep seeing clients.
Intake Coordination and Referral Management
Referrals do not appear out of nowhere.
We invest in intake coordinators, call handling, client screening and matching, waitlist management, scheduling support, and the technology and workflows that keep the pipeline running.
What I learned the hard way:
I have personally answered intake calls at 9 pm, followed up with leads over the weekend, and spent entire Saturdays building the referral relationships that now fill our caseloads.That work did not stop when I hired people to help carry it. It just became something I could invest in rather than do alone.
When you join a group practice with an active referral pipeline, you are not just getting clients.
You are inheriting years of relationship building, marketing, and trust that someone else built at their own expense and exhaustion.
Marketing, SEO, and Online Presence
Building and maintaining a referral pipeline requires a professionally built and maintained website, ongoing search engine optimization (SEO), AI-optimized content, content creation, online directories, reputation management, advertising, and compliance with legal and regulatory standards.
What I learned the hard way:
I thought good clinical work would be enough to fill a caseload.It is not.
Visibility requires investment.
I have a dedicated SEO contractor, a marketing intern, active social media accounts, a newsletter, a blog, referral partnerships with local medical providers, and a physical outreach strategy that includes in-person visits to doctors’ offices.
I am also an author and speaker, which builds credibility that flows back to the practice.
None of that is free, and none of it is fast.
When you benefit from a full caseload inside a group practice, you are benefiting from all of it.
Office Space, Systems, and Technology
Even primarily virtual practices incur high operational costs, including EHR platforms, telehealth systems, secure communication tools, scheduling software, payment processing, and HIPAA-compliant storage.
We use SimplePractice, iPlum, Google Workspace, Flodesk, ClickUp, and several other tools to keep operations running smoothly.
Every one of them has a cost.
Every one of them required setup, training, and ongoing management.
Human Resources, Payroll, and Administrative Infrastructure
Group practices manage payroll, tax compliance, HR policies, worker classification compliance, contracts, performance management, and conflict resolution.
What I learned the hard way:
The administrative burden of running a business is invisible to clinicians until they carry it themselves.There have been weeks when I have spent more time on operations than on clients.
That is the reality of ownership.
It is also why a well-run group practice is worth something, not just to the owner, but to every clinician who does not have to carry that weight themselves.
Supervision, Consultation, and Professional Development
A quality group practice provides clinical supervision, case consultation, access to resources, leadership development, ethical guidance, and support through difficult clinical situations.
At The And Way Therapy, I run group supervision, provide specialized OCD and trauma consultation, offer ASWB-approved CEU for social workers, and show up for my clinicians in ways that go beyond what a supervisor is technically required to do.
I have taken calls from clinicians in distress.
I have helped navigate complex ethical situations.
I have advocated for my team.
That investment in people is not a line item.
It is a value that costs time, energy, and genuine care.
Leadership, Growth, and Career Sustainability
One of the most underrated benefits of group practice is long-term career growth.
Training, supervising, program development, clinical leadership, and management opportunities create paths beyond trading time for income.
Private practice often caps at “more clients equals more money.”
Group practice can create something more.
The Community You Cannot Put a Price On
This is the one that does not appear in a spreadsheet.
At The And Way Therapy, we have built something genuinely rare: a connected, collaborative team that actually likes each other, consults with each other, and shows up for each other.
We have community education events.
We have a practice culture that is warm, intentional, and grounded in something bigger than billable hours.
I have poured an enormous amount of myself into building that.
And I believe it is one of the most valuable things we offer.
The Myth of Keeping 100%
It is tempting to think: If I went solo, I would keep all of that money.
In reality, you either pay those costs directly or you pay them in time, stress, lost income, and burnout.
Most clinicians in solo practice end up working unpaid hours on admin, paying out of pocket for marketing and billing, managing insurance chaos alone, and handling legal and compliance issues without support.
The difference is simply who carries the weight:
you or the practice.
Group Practice vs Solo Practice: A Different Way to Think About It
Instead of asking:
What percentage do I keep?
A more accurate question is:
What infrastructure am I buying back?
Group practice percentage is not a tax.
It is a trade.
Less business risk.
More clinical focus.
More support.
More sustainability.
More long-term growth.
And if you find the right practice, a community that actually has your back.
Final Thoughts
There is no single right path.
Solo practice, group practice, W-2, 1099, and hybrid models can all work depending on your season, your values, and your goals.
But please make decisions based on the full financial picture, not just the surface percentage.
A good group practice is not taking your money.
It is building the structure that makes your work possible, ethical, compliant, and sustainable.
And it is carrying a weight that is much heavier than it looks from the outside.
I am still carrying it.
And I would not trade it, because I believe in what we are building.
If you are a clinician navigating this decision and want to talk it through, I am always happy to have that conversation.
You deserve clarity, transparency, and support, whichever path you choose.
Kelsey Blahnik, LCSW-S
Founder, The And Way Therapy
OCD and Trauma Specialists | Austin and Dripping Springs, TX | Virtual Across Texas
Learn more about LCSW supervision with us
Learn more about The Basics of Practice here
FAQs About Private Practice Therapist Salary and Group Practice
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Private practice therapist salary can vary widely depending on caseload, session fees, insurance reimbursement, location, specialty, whether the therapist is solo or part of a group practice, and how much unpaid administrative work is required.
But the bigger question is not just what a therapist earns.
It is what they actually keep after business expenses, taxes, marketing, billing, consultation, legal support, technology, and unpaid time are accounted for.
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It depends.
Solo practice may offer more independence and the potential to keep more of each session fee, but the therapist is also responsible for the full cost and labor of running the business.
Group practice may involve a percentage split, but that split often helps pay for referrals, billing, credentialing, marketing, systems, supervision, consultation, and administrative support.
The better question is not always, “Where can I make the most per session?”
Sometimes the better question is, “Which model is most sustainable for me?”
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A group practice percentage often helps pay for the infrastructure behind the clinical work.
That may include liability insurance, legal support, billing, credentialing, intake coordination, referral management, marketing, SEO, EHR systems, telehealth platforms, payroll, HR, supervision, consultation, and leadership support.
In a healthy group practice, the percentage should represent real support, not just a number taken off the top.
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Group practice can be a good option for clinicians who want support, consultation, referrals, supervision, community, and less responsibility for the business side of private practice.
It can be especially helpful for therapists who are building confidence, developing a specialty, seeking clinical supervision, or wanting to grow without carrying the entire administrative and financial burden alone.
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Before joining a group practice, ask what is included in the percentage split or compensation model.
Ask about referrals, billing, credentialing, supervision, consultation, documentation expectations, scheduling support, marketing, required meetings, clinical support, and opportunities for growth.
You deserve to understand what you are receiving in exchange for the percentage the practice keeps.
Written by Kelsey Blahnik, LCSW-S
Kelsey Blahnik, LCSW-S, is an author, clinician, and creator of The And Way model. She is an advocate committed to bringing peace and justice into our politically divided world. With extensive experience in behavioral health, including work with substance abuse, unhoused individuals, and veterans, Kelsey has witnessed the impact of division on communities. She is the owner of a thriving online group therapy practice, The And Way Therapy, and author of the book The And Way: Assertive Peacemaking in a Divided World.
Outside the therapy room, you’ll usually find her reading, hiking, or enjoying matcha.
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