Are group practice owners exploiting therapists by earning revenue from their clinical work?

In this episode of The Therapist Business Growth Podcast, I’m responding to the claim that group practices are inherently unethical or predatory.

I’ll explain what actually makes a group practice unethical, why compensation percentages never tell the whole story, and five questions you can use to evaluate how you’re supporting your team.

What You’ll Learn in This Episode

Why Pay Splits Don’t Tell the Whole Story: How expenses, taxes, supervision, referrals, and administrative support affect compensation.

What Makes a Group Practice Unethical: The practices that cross the line from running a sustainable business into exploiting therapists.

How to Evaluate Your Own Practice: Five areas to examine when deciding whether your business model aligns with your values.

Episode Timestamps

• (00:24) - Are group practices inherently unethical?
• (03:34) - The argument against the group practice model
• (07:07) - What makes a group practice unethical
• (10:08) - Non-competes and client choice
• (12:00) - Supporting interns and associate therapists
• (14:06) - Transparency, compensation, and workplace culture
• (17:50) - Five questions for evaluating your practice
• (25:23) - Finding your ethical range

Top Takeaways on Building an Ethical Group Practice

1. Compensation Is Only Part of the Equation

A practice may retain 40 or 50 percent of session revenue, but that number alone does not determine whether the arrangement is fair.

Consider what the practice provides in return, including referrals, supervision, marketing, payroll taxes, office space, technology, administrative support, and reliable pay when insurance claims are delayed or denied.

2. Evaluate These Five Areas

Step 1: Value. What support and infrastructure are therapists receiving in exchange for the revenue the practice retains?

Step 2: Transparency. Do therapists understand their compensation, contract terms, and opportunities for increased pay?

Step 3: Client choice. Can clients follow a departing therapist without being restricted by an unreasonable non-compete?

Step 4: Growth. Do therapists have opportunities to develop, advance, or take on leadership roles?

Step 5: Investment. Are you doing the work, or hiring someone to do the work, required to market, strengthen, and sustain the practice?

3. Ethics Require an Ongoing Check-In

An ethical practice does not need to offer every possible benefit from day one. Your resources and level of support may change as the business grows.

Check in regularly with yourself and your therapists. If something no longer feels aligned, identify which of the five areas needs attention and decide what you can improve.

Resources

✨ Instagram: @dranahitabanoo
✨ Website: dranahitabanoo.com
✨ Solo to Group Practice Accelerator
✨ Freedom First Group Practice Accelerator
✨ Get your free marketing audit to help fill your caseload
✨Jane App Referral Code/Link (code: ANAHITA1MO)

Work With Me

Ready to build a profitable group practice that supports both you and your therapists? Explore my Group Practice Accelerator programs above or reach out directly.

🎙️If this episode helped you think differently about ethical group practice ownership, hit subscribe and share it with another therapist.

Disclaimer: This podcast is for educational purposes only and is not a substitute for therapy, supervision, or legal or financial advice.