Choosing the right career path in clinical psychology requires a deep understanding of your personal values and goals. Whether you’re drawn to the dynamic environments of hospitals and universities or the personalized touch of private practice, understanding the nuances of each setting is crucial. In this guide, we’ll explore the diverse opportunities for clinical psychologists, with a special focus on decision-making between job opportunities within the private practice world. We will address a confusing part of therapist job openings in group private practices, which is understanding the differences between 1099 contract positions and W2 employment.
Clinical Psychologists or Therapists in Institutional Settings
Hospitals: Clinical psychologists in hospitals play a pivotal role in multidisciplinary teams, addressing the psychological aspects of medical conditions, conducting assessments, and providing therapy. This setting offers the chance to work closely with psychiatrists, social workers, other therapists, and other healthcare professionals, contributing to comprehensive patient care.
Universities: Working within a university setting, clinical psychologists engage in a blend of teaching, research, and, sometimes, direct clinical service. This environment is ideal for those passionate about shaping future generations of psychologists, conducting research, teaching, and publishing.
Clinical Psychologist or Therapist Roles in Private Practice
Private Practice: Venturing into private practice, whether solo or into a group private practice, allows therapists to specialize in areas of interest, such as anxiety disorders, family therapy, or OCD. This path offers significant autonomy, the flexibility to set one’s schedule, and the potential for a higher income, depending on the client base and the ‘track record’ of the practice.
Private practice is also a setting in which the particular degree of the therapist becomes less defining or important to the role, as individual clinicians can seek out the type of training and specializing that they want to cultivate, regardless of being a Clinical Psychologist, LPC, LMFT, or LCSW.
If private practice feels right for you, there is also the important decision of whether to open your own private practice or join an established group practice. These are two very different experiences! Starting your own practice is a significant entrepreneurial undertaking that is best for those who know that they would love to spend their time on the business– marketing, networking, administration, operations, etc. About half of one’s time in their own private practice is spent doing clinical work, whereas the other half is spent on developing the business. This can be very exciting and rewarding for the right type of person; on the other hand, if it is not a great fit, one can quickly feel unfulfilled with how they are spending their time at work.
A solo private practice has other pros and cons: there is the potential to earn more income than in other settings, although the workload and responsibilities tend to be higher. An individual private practice can potentially be experienced as isolating, but extra effort can be put into creating a community of other professionals to consult and debrief with.
Group Private Practice: Joining a group private practice is a great job option for therapists who want the flexibility, higher income, and ability to treat specific types of populations, but do not want to spend their time running a business. Therapists within a group practice primarily spend their time doing clinical work. Group private practice provides a collegial atmosphere where professionals share insights, resources, and support. This model fosters a sense of community, reduces the isolation often felt in solo practice, and offers operational benefits like shared administrative tasks and broader service offerings to attract a diverse client base. For clinical psychologists or therapists seeking a balance between autonomy and collaboration, group private practices offer the best of both worlds.
Choosing which group private practice is the best “home” for you can be a complicated decision. They have all different types of cultures, expectations, and how the company sets up the structures of the job position itself can be different (i.e., 1099 vs W2), making it difficult to compare among job opportunities.
1099 Contract Position vs. W2 Employment
Understanding the distinction between being a 1099 contractor and a W2 employee is crucial for clinical psychologists and other therapists considering a career opportunity in group private practice.
1099 Therapist Contract Position: As a 1099 contractor, psychologists have the freedom to work with multiple organizations, and at times, can negotiate their hours and rates. However, this comes without the benefits and security of employment, and contractors are responsible for their taxes and health insurance. This can add up to a substantial amount of money that the therapist has to cover, reducing their net earnings. Sometimes, these types of jobs can require many other responsibilities beyond clinical work, including marketing and some administrative work.
W2 Therapist Positions: W2 employees enjoy the stability of a more regular salary, benefits such as health insurance and retirement plans, and contributions to their taxes by their employer. While the starting income of a W2 therapist might be less than a 1099 therapist position, many times the income will actually net out to more because of how much the employer contributes to benefits and taxes.
The journey to finding the right job in clinical psychology is deeply personal and influenced by individual preferences, lifestyle needs, and career aspirations. While institutional settings offer invaluable experiences and the chance to work within multidisciplinary teams, private practice provides a unique blend of autonomy, collaborative opportunities, and professional growth. Furthermore, weighing the pros and cons of 1099 contract positions versus W2 employment and understanding the culture of the group practice are vital steps in carving out a fulfilling career path.
As you navigate these decisions, remember that each setting offers distinct advantages and challenges, and the best choice is one that aligns with your professional values, goals, and desired work-life balance.
See our blog “Considering a Job in a Group Therapy Practice?” for other important points to consider and questions to ask during an interview when trying to find a job as a clinical psychologist or therapist in group private practice.
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