Budgeting a Private Practice

According to Chat GPT, here are some practical and effective ways to save money while running a psychiatric or mental health private practice, especially in 2025 when costs are rising for technology, insurance, and compliance… (with some added notes):

• Start lean and scale slowly: Begin with telehealth or a hybrid model to reduce office rent, utilities, and overhead before expanding into physical space. Usually people stick to their full/part-time job while building their practice, thus you can start your private practice with a system you’re already familiar with or shop around.. Before this stage, consider the BRANDING, work on a website/online presence, business cards, what your focus or niche or the theme, for example mine was community/traditional. START TRACKING COSTS.  
• Use cost-effective technology: Choose affordable EHR systems (like SimplePractice, TherapyNotes, or Jane) that combine billing, charting, and scheduling. Use free or low-cost HIPAA-compliant tools (e.g., Google Workspace with a BAA, Doxy.me, or Zoom for Healthcare). Automate tasks such as reminders, intake forms, and payments to save time and admin costs. Choose a system that you’re already working/set-up in and/or a system that YOU ARE comfortable with and able to be SUPER efficient. I’m not familiar with the ones Chat GPT listed, but there are some things you have to splurge on in practice and the EHR should be one of them! 
• Outsource smartly: Hire virtual assistants or billers part-time or per-claim instead of full-time employees. Use freelance marketing or bookkeeping services instead of large agencies. Before hiring assistance, be familiar with what you can/cannot delegate, costs, the expectations, and what EHR system they need to be familiar with and usually ask the EMR company if they have resources/tools for the staff, all of this have save me time and headaches. 
• Reduce administrative waste: Go paperless with digital records and e-signatures. Streamline documentation and use templates to minimize time spent on notes. Documentations are sometimes provided in billing services for free, but have your own legal forms/documentations for backup and in general.
• Negotiate and shop around: Compare malpractice insurance rates and request discounts for multiple providers or low-risk specialties. Negotiate rent, software renewals, and vendor contracts annually.
• Collaborate and share resources: Join or form group practices or co-ops to share office space, staff, and marketing costs. Partner with other clinicians for shared CEUs, supervision, or community workshops.
• Leverage free marketing: Use social media, Google Business Profiles, Psychology Today, and local directories for organic reach instead of paid ads. Network with primary care providers, schools, or local nonprofits to gain referrals.
• Maximize reimbursement and cash flow: Optimize coding and billing accuracy to reduce claim denials. Offer self-pay packages or memberships for stable revenue without insurance delays.
• Use tax deductions effectively: Deduct expenses like office supplies, professional dues, continuing education, software, and part of your home office. Work with a tax advisor familiar with healthcare practices to ensure full compliance and savings.
• Invest strategically: Focus spending on tools that directly increase efficiency, client satisfaction, or revenue, such as scheduling systems, telehealth platforms, or SEO-friendly websites.

Personal Tips that has Helped My Practice

Here are some additional saving/business tips that has helped me in this crumbling economy. I would like to believe that I organize stuff, but it’s these suggestions are mainly impulsive and just happen to work for me….  I would also put in risks to consider, but at least this is more information that I have ever received, including how the future of psych/mental health can help others be MORE prepared:

• Consider having a Google Account for Your Practice: my assistant and I share the email, google docs, etc. It’s easier to communicate, send PDF, and it’s free. I didn’t realize how helpful this was and how you always need a backup means for communicating and in the business world in general. Risks: mainly security risks, but have a strong vetting process and I’ve limited this to one person, if I add more staff or become a major clinic, then I can worry about stronger security measures but will have the $$$$$ to afford that or worry about that later if that occurs..    
• Consider a Business Microsoft Account: I use Teams and again another means of email, communicating, etc. and Teams is free and secured for patients, but most EMR/billing platforms also offer free telehealth options.
• EHR: I use Valant and it’s been really helpful, yes it’s costly but I gauged a system by how efficient I can be without having issues… some EHR’s are cheaper/free, but you have to consider more glitches, tech failures, etc.. I’ve heard Icannotes is another great system -therefore, aim for a EHR that handles schedule medications, documentations or data really well… Risks: well having a crappy EHR can be costly, cause work/charting delays, and ultimately cause more burnouts…
• Use Google Docs: to track my expenses, notes, everything. It’s FREE. Use Chat GPT (it’s also FREE), I use it to find local resources, help with letters, create infographics, etc. Here are more considerations to use Chat GPT:
  • Educational support: Provide clear, easy-to-understand explanations of mental health conditions, treatment options, and coping strategies—reinforcing what clinicians discuss in sessions.
  • Resource curation: Quickly generate tailored lists of community resources, such as crisis hotlines, low-cost therapy options, housing support, or substance use programs.
  • Administrative efficiency: Draft patient handouts, follow-up summaries, consent forms, and wellness guides, freeing clinicians’ time for direct care.
  • Therapeutic tools: Create personalized journaling prompts, mindfulness scripts, or CBT-style reflections for clients to use between appointments.
  • Communication aid: Help clinicians write supportive messages, newsletters, or psychoeducational materials that maintain a compassionate tone and clear language.
  • Cultural and accessibility adaptation: Adjust written materials for different reading levels, languages, or cultural contexts, improving inclusivity and understanding.
  • Program and curriculum design: Assist in developing mental health workshops, support group materials, or educational presentations tailored to specific populations or settings.
• Have an assistant: you have to have someone available to board the patients/grow the practice, while you work or do patient care. Also, my assistant is a nurse/familiar with commercial insurance -so I didn’t have to train her as much…. and it’s been my lifesaver. If you don’t have the funds to factor in an assistance, then probably wait to start your practice/patients aren’t pouring in to be able to take on more financial burdens…. Risks: if you do everything by yourself, you risk burnout, confusion, delays, missing opportunities also caution if you’re trying to save money using your partner/spouse, family/friends… try to keep your clinic MORE professional and formal. 
• Consider having an (as needed) office:  here’s a secret, I have an office and it’s the last weekend day of every month and it’s about 5 hours. Yup, it’s not much! But it’s something until I grow more and/or I don’t have to worry about the costs or DEA -but my patients are aware that how this may be the future. Again, try to save money and prepare for the future
• Additional Factors: Pay Attention to Laws/Regulations: as money dwindles, the last thing we need is a lawsuit, etc. With some options to do a MedSpa, HRT, Integrated Care, TMS, etc. make sure you’re malpractice insurance covers your services, etc… Lastly, in your practice, treatment, notes/charting, or in general continue to focus on PREVENTATIVE CARE… always try to avoid complications/crises:

5 Rambling Lessons this year as an NP

Welp, I’m still in the trenches but here are some lessons since I’m in my 5 year anniversary of being a NP.  Yes I’m over it and question why I put myself through this but here we go!

1. Time to get political: I know it’s painful but advocacy can only do so much in a 9-5 office. I wrote about some up coming laws and how to make a huge impact in healthcare. Please continue to advocate for psych. Make sure you’re social media is clean and not sociopathic, flirty, or abusive!  
2. I Don’t Like Matt Walsh: yes very random, but there are prominent voices (including doctors) in the media that downplay mental health and feel like it’s useless. He’s one of MANY that has made brutal comments about mental health, antidepressants, ADHD, and in general. People are facing major traumatic events and men are having a mental health crises as evidence by the news and violent crimes. People are looking everywhere for mental health services mainly due to a lack of access and you have famous influencers who are millionaires…with the privilege of just doing a talk show … Telling the working class to stop complaining or not take medications or get treatment and it’s extremely irresponsible. I guess this tangent is about having to educate the public about avoiding these voices online or in media and I feel like it’s just getting worse. I’m still working on my male section😭
3. SHAME on the Government: during the pandemic and till this day, I’ve accepted that many people are simply just not going to make it. It’s a bitter pill to swallow, but it’s NOT enough help and our government has failed us.  I’m working out my own feelings of how the powers that be would rather have us die than to offer, anyone who’s not rich, a helping hand. Canada and other countries are already offering euthanasia and death itself, can turn into a money maker -pandemic meds, organs, funeral homes, etc. but don’t give up! I’ve started a new series on lifestyle that’s discussing stuff in general… basically I’m putting more hope into the youth and not the politicians.
4. Alternatives: While I may not be starting my bakery, I plan on doing more in alternatives/complimentary health…  I’ve always believe in a combination of regular/Western care and using supplements, vitamins, etc. many bodies don’t respond to regular treatment and I know teas, soups, broths, have helped me tremendously… I’ve mentioned before to not put all you eggs in one basket (whatever that ONE job is) and to focus on a niche/or what you’re passionate about. When you love doing something, it truly doesn’t feel like “work” and that’s how you go to new levels and not lose your mind.
5. I’ve also given up on entertainment: because of the ads!! I’m also not paying for premium or any subscription, I’ve found more helpful ways to handle stress like watering my plants, writing, and cooking. The goal is to be more grounded and less dependent on cheap dopamine rushes. It’s time to get locked in!