STEPS TO A GREAT CAREER IN SOCIAL WORK - Opening a New Private Practice

Sep 21, 2026

Guidance for NASW members on how clinical social workers can start a new private practice, emphasizing that private practice primarily centers on psychotherapy while still requiring business preparation. The material covers required qualifications such as an MSW, post-graduate supervised clinical experience, and state clinical licensure. It outlines practice setup steps, solo versus group practice models, and key compliance and administrative needs including HIPAA, NPI and tax identification numbers, liability insurance, incorporation options, required forms, ongoing supervision, and joining provider panels.

LanguageEnglish

CategoryHealthcare

FormatPDF

Pages3

Reading Time8 min

AccessFree to download

QUALIFICATIONS

SETTING UP THE PRACTICE

MODELS OF PRIVATE PRACTICE

NATIONAL PROVIDER IDENTIFICATION NUMBER

TAX IDENTIFICATION NUMBER

PROFESSIONAL LIABILITY INSURANCE

INCORPORATING YOUR PRACTICE

FORMS

SUPERVISION

GETTING ON PROVIDER PANELS

JANUARY 2011 leadership adders: STEPS TO A GREAT CAREER IN SOCIAL WORK opening a new private practice One of the most frequently asked questions from NASW members is, “How do I open or start a new private practice?” This specialty area of social work practice is very attractive to social workers looking for a practice setting where they can be the primary decision-makers in an independent work environment. The primary focus of private practice is generally psychotherapy. National Association of Social Workers 750 First Street NE, Suite 700 Washington, DC 20002-4241 Federal and state statutes and regulations govern clinical social work psychotherapy practice . Clinical social workers should familiarize themselves with these laws and the basics of setting up a private practice to develop an effective framework for a successful business . » QUALIFICATIONS In order to set up a private practice as a clinical social worker, one must have the following credentials: • A masters degree in social work from an accredited school of social work • A minimum of two years or 3,000 hours of post-graduate experience ina supervised, clinical setting. (Some states require more . Check with your state licensure board for a confirmation of hours . ) • A clinical license in the state where the practice will be located. » SETTING UP THE PRACTICE Although the services provided in a private practice are clinical, it is important to remember that it is also a business that requires preparation, organization, and a business plan to be successful. Enrolling ina basic business course or workshop to acquire specific business skills and become familiar with key business practices can be very helpful in opening a private practice . Many social workers hire a practice management company to help with the business aspect of the practice . » MODELS OF PRIVATE PRACTICE Private practitioners may work in a solo or group practice . A solo practice has one clinician who is responsible for providing psychotherapy services and in most cases, owns the private practice . A group practice may have two or more clinicians who provide psychotherapy services . The Federal and state statutesand regulations govern clinical social work psychotherapy practice. clinicians may operate independently and bill for their individual services or they may work for the group who bills for them and provides other benefits . A group practice maybe owned by one or more of the clinicians or by someone else such as an investor. The decision to open a solo or group practice depends on the preference of the clinical social worker starting the business . Both models can be profitable and successful. » NATIONAL PROVIDER IDENTIFICATION NUMBER The Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires every mental health provider seeking reimbursement to obtain a National Provider Identification Number known as the NPI. This number identifies the provider rendering the services and is required for any provider submitting paper or electronic claims, or collecting cash from patients . You may request an individual or group NPI number. The application is brief and simple to complete and can be obtained from the National Plan and Provider Enumeration System at 1-800-465-3203. You may also apply online at [https://nppes.cms.hhs.gov](https://nppes.cms.hhs.gov). » TAX IDENTIFICATION NUMBER When opening a private practice, it is best to obtain a tax identification number solely for the practice . Doing so separates your personal financial affairs from your professional business . You may obtain a tax identification number from the federal government by completing IRS Form SS-4 . Forms are available online from the Internal Revenue Service [at](at www.irs.gov)[ www.irs.gov](at www.irs.gov). » PROFESSIONAL LIABILITY INSURANCE Professional liability insurance is required when opening a private practice . The amount of coverage is dependent

FAQs

What credentials are required to open a private practice as a clinical social worker?

A clinical social worker needs a master’s degree in social work from an accredited program, at least two years (or 3,000 hours) of post-graduate supervised clinical experience, and a clinical license in the state where the practice will be located.

Why is a business plan important when setting up a private practice?

Even though the services are clinical, the document stresses that private practice is also a business requiring preparation, organization, and a business plan. Taking a business course or using a practice management company can help build the needed skills.

Which administrative and compliance items are highlighted before reimbursement?

The guidance notes HIPAA requirements and obtaining a National Provider Identifier (NPI) for submitting claims and collecting cash. It also recommends obtaining a tax identification number for the practice and maintaining professional liability insurance continuously.

Sep 21, 2026

Upload by Caleb Sterling