Financial Success In Private Psychotherapy Practice Is Rare

The Internet is filled with adds about six-figure incomes of counselors and psychotherapists. Unfortunately, real life stories of persons who can demonstrate their financial success in providing counseling cannot be found.

Below are some of the factors that limit the income that counselors can expect from private practice:

·      Most Americans prefer to use their insurance (Managed Health Care) to pay for counseling or psychotherapy. Therefore, self-pay is limiting and not the norm.

·      The reimbursement rates for Managed Health Care are far too low for anyone to work forty hours per week and gross more than $40,000 per year.

·      The U.S. Department of Labor reports the annual earnings of a mental health counselor as $41,820.

http://www.bls.gov/oes/current/oes211014.htm

·      The hourly fees paid to Masters Level providers in $62.

Comparison of annual earnings for various professions, U.S. Bureau of Labor Statistics

Occupation	Annual earnings
Primary care physicians	$186,044/yr.
Psychiatry	$163,660/yr.
Physical therapists	$72,790/yr.
Nurses	$62,450/yr.
Psychologists who provide individual and family services	$57,440/yr.
Auto Mechanics who work at a dealer	$40,788/yr.
Mental health and substance abuse workers	$37,210/yr.
Marriage and family therapists	$36,730/yr.
Carpenters	$36,171/yr.

·      Office rent, social security, personal health insurance, telephone, business tax, malpractice, marketing and other related expenses would reduce the annual gross income of counselors significantly.

·      There are currently more counselors in the U.S. than needed. Consequently, most counselors cannot expect to fill even 20 hours per week of counseling.

Demonstrated competence in a niche that is needed offers promise

·      If given a choice, couples seeking help are more likely to select a provider who offers Emotional Intelligence Coaching rather than psychotherapy. Emotional Intelligence is new, popular and can include evidenced based interventions.

·      College is a difficult adjustment for many students. Counselors who have training and are able to offer a non-psychiatric intervention such as EI coaching can do well and good in this niche.

·      There is a growing need for Behavioral Health Intervention for youngsters who lack adequate interpersonal skills such as Asperger’s. Training, experience and skills in coaching these youngsters in EI for self-awareness, self-control, social awareness, empathy, assertive communication, impulse control and other EI skills can be lucrative.

·       Poor impulse control/anger management is rampant and is not a DSM-5 diagnosable disorder. School Districts, Courts, HR Managers, Jails, Prisons, Police Departments, the U.S. Military, parents and University Departments of Judicial Affairs are contracting with providers who are Certified Anger Management Facilitators. (CAMF)

·      Anger management has always been a factor in substance abuse treatment and sobriety. Successful substance organizations are now contracting with Certified Anger Management Facilitators to provide this service on a contractual basis.

Specialization in Emotional Intelligence coaching or classes offers the provider a route to proceed in which to generate more income in a shorter period of time besides providing an arena for a clients’ growth. For example, if we run an hour class of 8 persons and charge a fee of $60 per client, we have generated $480 in an hour. Very few counselors make $480 in an hour in individual psychotherapy. So Emotional Intelligence intervention can not only be a tremendous paradigm and experience for the client but also a great income stream for one’s private practice.

George Anderson, LCSW, BCD, CAMF

www.andersonservices