Therapy Contracts 101: The 8 Non-Negotiables You Need To Know

Legal Disclaimer: I am not a lawyer, nor is this considered to be legal advise. Please use this blog post as educationally material and inspiration only. Consult with your lawyer and licensing board for specific requirements and examples.

When establishing a contract as a private practice therapist, it is essential to outline the details of the therapeutic relationship, including topics like confidentiality agreements, boundaries, and goals for treatment. The contract should clearly define the responsibilities and expectations of both the therapist and client which ensures transparency and sets the foundation for a productive and respectful therapeutic alliance.

When I first opened my private practice, the idea of writing a contract was extremely intimidating. I spend weeks researching other therapy contracts and pulled bits and pieces of what I liked and create something that fit my personal practice. As I read through all those contracts however, some common elements remained consistent throughout.

This blog post with go over 8 important elements to include in a therapy contract as well as template resources to help you draft a contract of your own. For more details on therapy contracts as well as other private practice start of resources, you are welcome to join me in the digital masterclass: Stress Less About Starting A Private Practice.

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Therapy Contracts Must Include: Scope of Service

When it comes to therapy contracts, a detailed Scope of Service section is absolutely essential. This section provides a clear outline of the services that will be provided during therapy sessions, including the specific objectives that will be worked on. By defining these parameters in the contract, both the therapist and client can establish clear expectations and avoid misunderstandings. This can help to build trust and a strong therapeutic relationship right from the beginning.

In addition to setting expectations, the Scope of Service section can also serve as a roadmap for progress and accountability. By outlining the techniques and modalities that will be utilized during sessions, clients can have a clear understanding of what they can expect from their therapist. This not only helps clients to track their progress but also ensures that therapists are providing services within their area of expertise and adhering to ethical guidelines.

Another important benefit of having a detailed Scope of Service section is that it can help protect therapists from potential legal issues. By outlining the limitations of their role and ensuring that they are not making promises beyond what they are qualified to deliver, therapists can reduce the risk of legal disputes. Additionally, having a clear Scope of Service section can help therapists to refer clients out to specialists or higher levels of care when necessary, without creating feelings of abandonment or confusion.

Overall, including a detailed Scope of Service section in therapy contracts is crucial for both therapists and clients. It helps to establish clear expectations, build trust, track progress, and ensure that services are being provided within ethical guidelines. By taking the time to carefully outline the scope of services provided, therapists can create a strong foundation for a successful therapeutic relationship.

Need help with writing the legal lingo outlining your services? Check out Branden Drake Contract Club: Module 1A part 2 (affiliate link)

Therapy Contracts Must Include: Pricing

As a therapist, it can be uncomfortable to talk about money. However, it’s important to remember that running a therapy practice is a business, and businesses are expected to charge a fair rate for their services. One way to manage expectations and eliminate any potential misunderstandings about fees or payment schedules is by outlining pricing within the contract. This not only demonstrates an upfront commitment to transparency and fairness, but also helps foster trust in the therapeutic relationship.

By addressing pricing within the contract, both parties can have a clear understanding of financial obligations. This creates an environment focused on progress and healing without unnecessary distractions or stress related to payment discussions during sessions. Additionally, you can discuss the Good Faith Estimate and the legal requirements around price transparency to ensure that your clients are well-informed about their financial responsibilities. For more information on Good Faith Estimates, be sure to visit the Centers for Medicare & Medicaid Services webpage.

When outlining your pricing, make sure you include fees for standard therapy sessions (typically 45 minutes), as well as short sessions (30 minutes) and extended sessions (60+ minutes). It’s also important to include fees for non-clinical expenses such as report writing, phone calls, extensive case consultations, court appearances, and other services that you plan to charge for. Remember, if you plan to charge for a service, make sure it is included in the contract.

Overall, discussing pricing within the contract is a crucial step in establishing a successful therapeutic relationship. It helps both you and your clients have a clear understanding of financial expectations and responsibilities, promoting trust and transparency throughout the therapeutic process.

Need help with writing the legal lingo for your investments section? Branden Drake Contract Club: Module 1A part 2 (affiliate link)

Therapy Contracts Should Include: Office Hours

Establishing office hours is a critical component of any therapy contract. By outlining specific hours of availability, both the client and therapist can avoid any confusion regarding when appointments can be scheduled or when the therapist will be available for support. This helps to manage expectations on both sides and fosters a clear and healthy therapeutic relationship.

I also like to include procedures for handling emergencies or crisis situations in this section. This ensures that both parties understand what to do in the event of an unexpected situation and helps to promote a sense of safety and security within the therapeutic relationship.

Beyond promoting clear boundaries and safety, establishing designated office hours also allows therapists to maintain a healthy work-life balance. By having set hours for work, therapists can prioritize self-care and personal obligations outside of their professional role. This not only benefits the therapist but ultimately enhances the quality of care they can provide to their clients.

In conclusion, including office hours in a therapy contract is a necessary step in establishing a healthy therapeutic relationship. By promoting clear boundaries, safety, and work-life balance, both the therapist and client can benefit from a strong and successful therapeutic alliance.

Therapy Contract Must Include: HIPAA & Confidentiality

Maintaining client confidentiality is a crucial aspect of the therapeutic relationship. HIPAA regulations play a fundamental role in ensuring that client information is protected from unauthorized access or disclosure. As a therapist, it is essential to adhere to HIPAA guidelines and make this commitment clear to clients. One way to do this is by including a clause in the therapy contract that explicitly outlines adherence to HIPAA regulations.

By including a HIPAA clause in the therapy contract, therapists can demonstrate their commitment to maintaining client privacy and confidentiality. This not only ensures compliance with legal requirements but also instills confidence in clients regarding the security of their personal information. Moreover, emphasizing the importance of confidentiality in the therapy contract sets a tone for professionalism and ethical conduct within the therapeutic relationship, ultimately enhancing the overall sense of safety and trust between therapist and client.

In my contract I also include information in the therapy contract about how breaches in confidentiality are handled and how clients can report HIPAA concerns to a licensing board if they have worries about their privacy. By being transparent about these processes, therapists can further reinforce their commitment to maintaining client confidentiality and protecting their privacy.

In summary, including a HIPAA clause in the therapy contract is an essential step towards safeguarding client information and demonstrating a commitment to maintaining confidentiality. It sets a tone for professionalism and ethical conduct and ultimately enhances the overall sense of safety and trust between therapist and client.

Need help with writing the legal lingo for confidentiality? Branden Drake Contract Club: Module 1A part 7 (affiliate link) — NOTE Branden does not go over confidentiality exclusively for HIPAA, but his language gives a good base description for how confidentiality is maintained.

Therapy Contracts Should Include: Travel (if providing in home services)

As the demand for in-home therapy services rise with the aging Baby Boomer generation, it’s becoming increasingly important for therapists to establish clear expectations and guidelines around travel (if home services are provided). Including a dedicated travel section in the therapy contract can help ensure that both the therapist and client understand the logistics and costs associated with travel.

This travel section can cover important details such as mileage reimbursement, travel time charges, and fees for out-of-area appointments. By outlining these specifics in advance, therapists can avoid misunderstandings and prevent potential sources of friction. This level of transparency fosters trust and strengthens the therapeutic relationship.

Furthermore, incorporating a travel section into therapy contracts highlights the therapist’s professionalism and attention to detail. It demonstrates their commitment to making therapy accessible and convenient for their clients, while also protecting their own time and resources. By proactively addressing these logistics, both parties can navigate potential disputes or confusion with greater ease.

Overall, including a travel section in therapy contracts is a smart and essential practice for therapists offering in-home services. It sets clear expectations, fosters trust, and enhances the therapeutic relationship by minimizing potential sources of tension around scheduling and costs.

Need help with writing the legal lingo about travel expectations? Branden Drake Contract Club: Module 1A part 7 (affiliate link)

Therapy Contracts Must Include: Cancelation Policy & No Show Policy

Including a section on cancellation and no-show policy in a therapy contract is a crucial step for therapists to foster a professional and respectful therapeutic relationship with their clients. By outlining the consequences of missed appointments without proper notice, therapists can ensure that their time is respected and valued by clients. This, in turn, reinforces the importance of consistency in therapy, which is vital for the effectiveness of the treatment process.

Moreover, having these policies in place also protects the therapist’s livelihood and ensures sustained practice. Therapists rely on their clients’ commitment to attendance to maintain a stable income, and missed sessions can have a significant impact on their ability to provide quality care. By outlining clear cancellation and no-show policies within the therapy contract, therapists can create a mutual understanding with clients about the impact of missed sessions on both parties. This promotes accountability and responsibility within the therapeutic relationship, providing an added layer of professionalism and structure that benefits both client and therapist alike.

In summary, including a section on cancellation and no-show policy in a therapy contract is not just a smart move, but a necessary one. It helps to maintain a professional and respectful therapeutic relationship, reinforces the importance of consistency in therapy, and protects the therapist’s livelihood. By promoting accountability and responsibility within the therapeutic relationship, these policies ultimately benefit both client and therapist alike.

Need help with writing the legal lingo for a Cancelation Policy? Branden Drake Contract Club: Module 3 Lesson 3 (affiliate link)

Therapy Contracts Should Include: COVID Liability Waiver (if providing in person care)

Since the 2020 pandemic, new contract clauses have made an appearance, more specifically linked to the risk of COVID in face to face services. Therapists providing in-person care are strongly encouraged to take proactive measures to protect themselves and their clients from potential exposure to COVID-19. One such measure is to include a section on COVID liability waiver in therapy contracts. By doing so, therapists can ensure that clients are fully informed about the risks associated with face-to-face interactions and consenting to these circumstances.

Additionally, including a COVID liability waiver in therapy contracts demonstrates professionalism and proactive risk management on the part of the therapist. It shows that they are taking the current health crisis seriously and are committed to implementing safety measures in their practice. This, in turn, can instill confidence in clients and set a precedent for open communication regarding safety measures during therapy sessions.

Overall, incorporating a COVID liability waiver into therapy contracts is a smart and necessary step for therapists during these unprecedented times. It not only protects both the therapist and the client, but it also demonstrates a commitment to safety and responsibility in the face of an ongoing health crisis. By taking proactive measures like this, therapists can navigate these uncertain times with transparency, professionalism, and care for their clients.

Need help with writing the legal lingo for a COVID Liability Waiver? Branden Drake Contract Club: Bonus Contracts (affiliate link)

Therapy Contracts Should Include: Testimonials

This one is an iffy, because depending on your therapy license you may or may not be permitted to collect testimonials. As a social worker in New Jersey, this is a big no-no because of confidentiality as potential power dynamic issues. If you do however collect testimonials, it is important to discuss in your client contract how they will be used and where they are displayed. I would also strongly recommend having a section on how a client can redact a testimonial should they wish.

Why might someone want to include testimonials at all?

Firstly, it provides reassurance to potential clients about the therapist’s expertise and effectiveness. Reading positive feedback from previous clients can help alleviate any doubts or anxieties they may have about starting therapy. Additionally, testimonials serve as social proof, demonstrating that the therapist has successfully helped others with similar issues. Furthermore, displaying client testimonials emphasizes transparency and accountability on the part of the therapist, showcasing their commitment to delivering high-quality care.

Need help with writing the legal lingo for writing a section about testimonials? Branden Drake Contract Club: Module 1b under bonus contracts (affiliate link)

Additional Information Needed?

For more detail about therapy contracts and all things private practice start up, please refer to Solo Private Practice Startup Bundle.

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Summary

When beginning a therapy practice, establishing a contract is critical to establishing the therapeutic relationship. This agreement should clearly outline confidentiality agreements, boundaries, and goals for treatment, and define the responsibilities and expectations of both the therapist and client. By defining these details, transparency is ensured, and it sets a productive and respectful foundation for the therapeutic alliance.

Creating a contract can be intimidating, especially when starting a private practice. However, researching other therapy contracts and incorporating elements you like can help. I hope this blog post gave you some ideas as to where to start as well as some resources that are available to help you create a personalized contract that fits your practice. For more help on all things private practice start up, you are invited to join our digital masterclass, Stress Less About Starting A Private Practice which is a part of the Solo Private Practice Bundle.