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Starting a Private Practice as a Prescribing Psychologist

Writer's picture: Empathic TeamEmpathic Team

A prescribing psychologist (RxP) is a trained mental health professional who also has the ability to prescribe medication. As of February 2025, there are currently seven U.S. states (and the Department of Defense) that allow a prescribing psychologist license, which is earned after rigorous academic study, numerous medical rotations, and a comprehensive exam.


Becoming an RxP is no easy task, which makes it especially rewarding when you're able to start your own practice and begin helping patients in a new way.


In this article, we'll cover some special considerations and extra steps to be aware of when starting a private practice as a prescribing psychologist.


For more information about the journey to becoming a prescribing psychologist and helpful resources, we recommend reading our guest article by Dr. Gretchen A. Boules, one of the first RxPs in the State of Illinois!


What's different about starting a practice as an RxP?

A young African-American woman holds a prescription bottle while an older African-American female therapist reassures her. Operating a private practice as a prescribing psychologist requires additional planning and communication.

In many ways, setting up your private practice as a prescribing psychologist is similar to how you would as a general mental health provider.


In addition to the steps outlined in the article above, there are four extra actions we'd recommend you consider so that your clients and business partners can better understand what sets you apart.


  1. Understand your billing and paneling needs

Billing and claim management is one of the biggest barriers to starting a practice as an RxP. If you decide to accept insurance, you'll need to make sure your biller can help with:

  • Paneling with payers who understand the scope of an RxP's duties

  • Leveraging CPT codes to reflect additional prescribing duties

  • Tracking and notification of prescriptions and dosage changes with a patient's primary care doctor


It's imperative that you find a billing partner who understands the unique challenges and benefits of working with prescribing psychologists.


 

DID YOU KNOW: Empathic Billing works with RxPs in multiple states and has resources for both paneling and full-service billing! We save the average RxP 12-15 hours per month on billing and admin.


We can bill through your current EHR or via direct data billing, so you don't need to adjust to any new platforms or technology.


We are offering RxPs a special discount of 40% off your first 6 months! Schedule a free, no-strings-attached consultation here and include the code EB-40X6-RxP-BLOG to qualify.


 

  1. Contact your insurance payers about your new offerings

Reach out to insurance companies you are credentialed with and let them know you are now licensed to prescribe medication. Prescribing opens up several new CPT codes that you can bill, so giving your payers a heads up can avoid confusion or delayed payments down the line.


  1. Update your public profiles

Go through your website, LinkedIn profile, and any professional directories you appear in and update your information to reflect your new licensure. Since this is a relatively new specialty, you may choose to include a short paragraph explaining what an RxP does and how this will benefit those seeking treatment.


In some professional directories, prescriptive authority may be referred to as "medication management". This is how prospective clients might filter a larger list when looking for a therapist and/or psychiatrist, so you want to make sure you appear under this term.


  1. Communicate with your current clients

If you've already established a client base at your current clinic, let them know about this exciting professional update and explain what this can mean for their treatment progress and goals.


You may choose to remain with your group practice and run your private practice on the side, or you may choose to fully commit to your new practice. Either way, you need to make this clear to your clients and reassure them that, ultimately, their care is your top priority.



Taking the next step in your career as a prescribing psychologist is an exciting time, and the prescriptive authority movement will only continue to grow. By setting yourself up for success, you'll be able to build a thriving private practice in no time.


For more RxP-specific resources, visit the APA's Society for Prescribing Psychology and contact your state psychology association.

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