Redeemed Billing Briefs
August 11, 2025

How to Start your very own Private Mental Health Practice in Illinois (Without Losing your Mind)

So you are ready to start your own therapy private practice? First of all, congratulations!! This is a very brave step, and one that could excel your future in ways you couldn’t imagine. 

This guide will walk you through the must-do steps to achieving your own private mental health practice in Illinois.

1. Pick a Name

This step is one of the fun ones, you want to choose a name that reflects you and your values and the services your practice provides. 

Two things you want to keep in mind when you have some options:

  • Make sure it’s not already in use (search online & on the IL secretary of State website).

  • Make sure you can get the domain name and social handles.

2. Decide on Your Location

One important thing to decide is are you going to be fully telehealth, working from home or are you opening a physical office?  You can also do a mix of both.

If you are renting:

  • Look for a HIPAA-compliant space.

  • Consider coworking setups or subleasing from another therapist to save some money.

If you are planning on telehealth:

  • Make sure your tech setup is secure and professional.

  • Ensure your backdrop is comforting and inviting!

3. Get Your Tax ID (EIN)

The next important step would be applying for a free Employer Identification Number through the IRS in Illinois.

Even if you are a solo practitioner, the tax id (EIN) is helpful in many ways:

  • Setting up a business bank account

  • Applying for insurance panels

  • Keeping your Social Security Number private

4. Apply for a group NPI

Yes, even solo practitioners benefit from having a Type 2 (organizational) NPI in addition to your personal (Type 1) NPI. You’ll need both when billing insurance. 

You can apply for this through the National Plan and Provider Enumeration System or NPPES for short.

5. Set up your CAQH Profile

Insurance companies use CAQH to verify your credentials,  so this is an important step to get set up early on.

You will need to upload the following information:

  • Your licensure

  • Degrees

  • Liability Insurance

  • Work History

It is important to keep this updated! This saves so much time when applying to panels later.

6. Take out Malpractice Insurance

This is an important step to protect yourself and your license. You want to look for policies that cover both in-person and telehealth work depending on your services.

Some options include:

  • HPSO (popular among therapists)

  • NASW (popular among social workers)

One thing to keep in mind is that some policies offer discounts if you’re part of a professional organization like NASW or ACA.

7. Apply to Insurance Panels

If you are planning on accepting insurance ,Instead of private pay only, you’ll need to get credentialed. 

Start with the big ones:

  • BCBS of Illinois

  • Aetna

  • United Healthcare

  • Cigna

  • Medicare / Medicaid (if applicable)

Keep in mind that credentialing can take 60-120 days to complete. You want to get organized, follow up, and don’t be afraid to call them.

8. Choose a Billing Software

This is a very important step and your lifeline for keeping everything organized.

Our top recommendations include:

  • SimplePractice: Beautiful, user-friendly, all-in-one. Great for solo or group practices.

  • TherapyNotes: Known for excellent customer support, customizable notes, and strong billing features.

Look for software that lets you:

  • Send intakes

  • Schedule appointments

  • Store progress notes

  • Submit claims (or integrate with a billing service!)

9. Bonus Step: Get Support!

Running a practice doesn’t mean you have to do it all alone. 

This could mean:

  • Hiring a billing company (Like ours!!).

  • Working with a supervisor or coach.

  • Joining a local therapist network.

No need to isolate! These support systems can help you every step of the way and make the process a whole lot easier.

Final Thoughts

Starting a private practice is a big leap, but it doesn’t have to be overwhelming. Staying organized and taking things one step at a time.  The right tools and support makes the whole process a lot more manageable.

If you’re a therapist in Illinois and want help navigating credentialing, billing, or setting up the backend of your practice… Give us a call!!

Disclaimer: This blog is for informational purposes only and is not intended as legal, tax, insurance, or clinical advice. Please consult with appropriate professionals for guidance specific to your situation. Requirements may vary by state and license type 

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