Is it worth it financially to start or join neuropsych private practice if I don't want to do forensic/legal work?

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

neurotic_cow

Full Member
2+ Year Member
Joined
Aug 17, 2021
Messages
179
Reaction score
299
Hi all, I'm getting real tired of working as a neuropsych in big healthcare. My productivity requirements keep going up and my pay is stagnant, add in some additional administrative hurdles and other stressors and I'm considering my options. I am considering joining an already established practice or just starting my own. Pros/cons of either of those? Is it worth it if I don't want to do any legal or forensic work? My former supervisors who have PPs all talk about how lucrative private practice is but they all do IMEs. I have no interest in doing those. How do I even go about getting started if I want to start my own practice and where can I find resources to assist me?
 
Each person has their own risk tolerance. Here is what I would ask you:

1. How much familiarity do you have with billing and back end procedures in healthcare?

2. What services do you want to provide? (Just neuropsych or also psychotherapy? Dementia evals or peds neuropsych?)

3. How much financial runway do you have to pay all of your bills while starting a business? I suggest at least two years, but I am a conservative guy.

4. How much do you have in start up capital? This matters more in neuropsych due to testing materials cost in addition to office expenses. Telehealth psychotherapy, for example, has relatively small costs in comparison.
 
Last edited:
Agreed that there are lots of variables in play, and that the start-up costs for a typical neuropsych practice are going to be higher than for a therapy-only practice. As was said, you'll needing testing materials, a physical office space and everything that comes with it, and then all the other practice stuff (e.g., scheduling software, EMR, phones). If you need to take out loans for that, you'll need to factor the interest and repayment into your operating costs.

All that aside, you can probably make a 100% clinical practice viable, but it becomes easier with testers. You can pull Medicare numbers for your area online and use that to give a rough estimate of what you'll earn for a typical outpatient eval based on CPT codes used.

I pulled data on this in my area maybe 5 years ago now. Based on that, assuming I know how to use a spreadsheet (debatable), it worked out to about $40-45k/year per weekly eval that you do, assuming you work 48 weeks/year (and based on doing all your own testing). So if you see 4 evals/week, that's around $160-170k/year gross, and for 5 evals/week, it's a little over $210k/year; probably want to subtract like 10% of that for late cancellations, no-shows, and other random stuff. A tester adds almost that same amount, assuming you can actually bill the insurance provider(s) for their time (i.e., 96138/96139) and don't just have all those charges auto-rejected.

This is assuming you can quickly fill a practice. Which in most areas, probably isn't an issue if you keep your wait list at or under 2-3 months.
 
Top