(original publication 6/25/20; updated 6/12/25)
When you started your private practice, what goals did you have in mind?
Maybe you were hoping to achieve the independence that comes with running your own business, or you wanted to specialize in one particular area of practice. Maybe you were drawn to the freedom of dictating your own schedule. No matter what you had in mind, the prospect of making more money in private practice compared to community mental health was likely a big consideration.
According to ZipRecruiter, Mental Health Nurse Practitioners and Psychiatrists in private practice in the United States earn between $68k-$399k annually. Although earning potential will vary depending on the hours you work, your location, and the cost of living, taking home a six-figure salary while operating a private practice is achievable.
At MindEase Billing, many of our new clients are ready to grow their business and/or increase their revenue – and part of our mission is to help them do it. Here’re a few lessons we’ve learned from successful, six-figure private practice Psychiatrists and Mental Health Nurse Practitioners.
✅They do the math
Successful private practice therapists plan ahead by staying on top of their current revenue and make changes when needed.
To earn six figures in private practice, do the math. Divide your revenue goal by your number of annual work weeks. (Remember to consider time off for holidays, vacation, and restoration; it’s not realistic long-term to work 52 weeks a year.) Then, divide it again by your ideal number of weekly clients. This will determine your average revenue per session.
In many locations, for Psychiatrists and Mental Health Nurse Practitioners, 20 sessions (50 minutes each) per week is sufficient for a therapist to break the $200K mark.
If you’re outsourcing your billing, aim to keep your billing expense below 10% of your revenue per month to maintain a long-term sustainable relationship.
Here’s a chart you can model as you work through your own plan.
✅They prioritize billable work
Can you manage all the coding services, payment tracking, financial and revenue reports while managing your busy schedule? Maybe. But what would your revenue look like if you spent more time on billable work and less on the actual billing, follow up and other insurance-related headaches?
Six-figure earning Mental Health Nurse Practitioners and Psychiatrists prioritize billable time and tasks that only they can do, outsourcing other business management and accounting tasks to experts.
✅They’re diligent about filing claims and reducing errors
When you keep your activity and records organized, you can submit claims quickly and receive payments faster. Not allowing claims and outstanding balances to linger allows deeper and more timely insight into the state of your finances.
Hiring a professional medical biller will ensure billing and coding accuracy as well as timely claim submissions. At MindEase Billing, we know the importance of minimizing errors when it comes to cash flow and revenue growth.
📊Conclusion
Making time to grow your practice can be tough. Whether you’re just starting out, or your practice isn’t accomplishing what you’d hoped, carving out some time to review your plans and processes can help you identify the gap between where you are and where you want to be.
If you’re ready to explore outsourcing your billing to MindEase, click the Request A Discovery Call button below to get started.