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 learned the hard way. First as a private practitioner, and now as a group practice owner.
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.
These are the actual costs I've paid, what caught me off guard, and what I wish someone had laid out for me earlier in my career. Whether you're in a group practice thinking about going out on your own, or you're a solo practitioner considering expansion, I'm not here to talk you out of either path. I just want you to go in with your eyes open because the financial reality of sustainable private practice is something most people don't talk about honestly until it's already hit them.
I really enjoy changing hats and my personality and skillset make it an excellent fit. What I hope you take away before you hire your first clinician is that you stop being just a therapist the moment you do.
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:
Some people copy and paste forms off a google search. Yikes! We need solid, intentional paperwork drafted by professionals. You want to feel comfortable and confident when issues arise.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:
You could have 100 claims go through seamlessly either through your own insurance contract or through a VC-backed company. But then there’s that one. The one subsidiary plan without an ERA that insists on snail mailing your expired e-cards you’ll just have to call, wait on hold, void, request checks, and wait on mail again. The one that three different insurance representatives give you three different versions of a benefits check for. That one odd case that you’ll end up pouring dozens of hours, plenty of energy, and perhaps some cursing to the wind. When you’re a part of a group practice that has the credentialing and billing piece handled for you, that is irreplaceable peace of mind.Intake Coordination and Referral Management
Referrals do not appear out of nowhere. Not anymore.
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 all times of day, followed up with leads over the weekend, and spent entire Saturdays building the referral relationships that now fill our caseloads.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. You get to share the investment across your team by referring to one another and sharing connections.
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.
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 referrals inside a group practice, it is driven by all those actions behind the scenes.
Office Space, Systems, and Technology
Even primarily virtual practices incur high software operational costs, including EHR platforms, telehealth systems, secure communication tools, scheduling software, payment processing, and HIPAA-compliant storage.
We use SimplePractice, iPlum, Squarespace, Google Workspace, Flodesk, ClickUp, MailHippo, 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, 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 is more than a place to see clients. It should offer consultation, access to resources, leadership development, ethical guidance, and real support through the hard moments that no one prepares you for in grad school.
When evaluating a group practice, look for a practice owner who shows up beyond what is technically required so that you know someone will advocate for you, be available in a crisis, and ideally able to offer specialized consultation and training. At The And Way Therapy, we offer specialized consultation in evidence-based OCD and trauma treatment since I am an ASWB-approved CEU provider for social workers.
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 sustainable when leadership paths are clear.
What I learned the hard way:
I saw the writing on the wall early, that grinding through billable hours indefinitely was not a sustainable career. Supervision, consultation, training, and leadership do not just add variety to your work, they protect you from burnout in a way that a full caseload alone never will.A group practice can offer that kind of growth without requiring you to build the infrastructure yourself. You do not have to form an LLC, negotiate contracts, figure out malpractice coverage, or learn healthcare billing from scratch just to supervise an intern or lead a consultation group. That scaffolding already exists within the group practice. You can step into a more expansive version of your career without carrying the full weight of ownership.
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 a practice culture that is warm, intentional, and grounded in something bigger than billable hours. Connection to the team is consistently available. We celebrate holidays and special events in one another’s lives.
I believe it is one of the most valuable things group practices can offer.
What I learned the hard way:
It was incredibly isolating to build a practice on my own. A group practice means having peers to send that hilarious therapy reel to. It can mean having someone to text after that brutal couples session, or finding out about an exciting training opportunity through a teammate. It can mean commenting on each other's posts, sharing each other's content, and showing up for one another in small ways that add up. Community is not a “perk” of a group practice. For a lot of clinicians, it is the whole point.
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.
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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