Step 1: Obtain Your New York State License
Understanding Licensure Requirements
To legally practice telemental health in New York, obtaining a state license is paramount. The New York State Education Department (NYSED) oversees the licensure of mental health professionals.
Depending on your specialization—be it as a Licensed Mental Health Counselor (LMHC), Licensed Clinical Social Worker (LCSW), or Psychologist—specific educational and supervised experience requirements must be met.
For instance, LMHC applicants must have a master’s or doctoral degree in counseling or a related field, complete 3,000 hours of post-graduate supervised experience, and pass the National Clinical Mental Health Counseling Examination (NCMHCE).
Application Process and Fees
The licensure application process involves several steps:
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Submit Form 1: This is the Application for Licensure, accompanied by a $735 fee.
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Educational Documentation: Arrange for your educational institution to send transcripts directly to NYSED.
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Experience Verification: Provide documentation of your supervised experience.
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Examination Scores: Ensure that your exam scores are sent to NYSED.
The entire process can take several months, so it’s advisable to start early and ensure all documentation is accurate and complete.
Step 2: Secure Board Certification
Importance of Board Certification
While not mandatory, obtaining board certification can enhance your credibility and demonstrate your commitment to professional excellence.
Organizations like the National Board for Certified Counselors (NBCC) offer certifications that can set you apart in the field.
How to Apply for Board Certification
To apply for board certification:
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Meet Eligibility Requirements: This typically includes holding a relevant degree, completing supervised experience, and passing a certification exam.
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Submit Application: Complete the application process through the certifying body’s website.
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Maintain Certification: Engage in continuing education and renew your certification as required.
Step 3: Acquire DEA Certification
Necessity for Prescribing Controlled Substances
If your practice involves prescribing controlled substances, obtaining a DEA (Drug Enforcement Administration) registration is essential. This certification allows you to legally prescribe medications classified under schedules II-V.
Application Process for DEA Registration
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Determine Eligibility: Ensure you hold a valid state license and meet any additional state-specific requirements.
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Complete the Application: Fill out the DEA Form 224 online through the DEA’s Diversion Control Division website.
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Pay the Fee: As of now, the application fee is $888 for a three-year registration.
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Await Approval: The approval process can take several weeks, so plan accordingly.
Step 4: Establish Your Business Entity (PC, PLLC)
Choosing Between PC and PLLC
In New York, mental health professionals can choose between forming a Professional Corporation (PC) or a Professional Limited Liability Company (PLLC). Both structures offer liability protection, but there are differences in management and taxation.
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PC: Suitable for professionals who prefer a corporate structure with shareholders.
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PLLC: Offers more flexibility in management and is often preferred by solo practitioners or small groups.
Filing Articles of Organization
To establish your business entity:
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Obtain a Certificate of Authority: Submit your application to the NYSED’s Office of the Professions.
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File with the Department of State: Once you have the Certificate of Authority, file the Articles of Organization with the New York Department of State.
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Publish a Notice: New York requires new entities to publish a notice of formation in two newspapers for six consecutive weeks.
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Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS.
Step 5: Obtain an EIN Letter
What is an EIN and Why You Need It
An EIN, or Employer Identification Number, is a unique identifier issued by the IRS for your business.
Think of it as a Social Security number—but for your practice. Whether you’re solo or planning to hire staff later, having an EIN is essential.
You’ll need it to open a business bank account, file taxes, apply for business licenses, and more.
Even if you’re not planning to have employees right away, securing your EIN early simplifies your business formation process.
Steps to Apply for an EIN
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Go to the IRS Website: The fastest way to get your EIN is by applying online directly through the IRS EIN Assistant.
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Choose Your Entity Type: You’ll be asked to select whether you’re a sole proprietor, PLLC, or PC.
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Complete the Application: Fill in your business name, responsible party info, mailing address, and nature of your business.
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Submit and Download the EIN Letter: After submitting, you’ll instantly receive your EIN confirmation letter—print or save it for your records.
That’s it! It’s free and typically takes less than 15 minutes.
Step 6: Open a Business Bank Account
Importance of Separating Business Finances
Mixing personal and business finances is a recipe for confusion and potential legal issues. A dedicated business bank account keeps everything organized.
It’s vital for tax season, simplifies accounting, and legitimizes your practice.
Most banks won’t even let you open a business account without an EIN and formal business registration, so make sure you’ve completed those steps first.
Choosing the Right Bank for Your Practice
When selecting a bank, consider:
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Online Banking Features: You’ll want easy transfers, mobile check deposits, and integrations with accounting software.
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Fees and Minimums: Some accounts require monthly minimum balances to avoid fees—read the fine print.
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Customer Service: Look for banks that understand small or healthcare-based businesses.
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Accessibility: If you prefer in-person banking, make sure they have branches nearby.
Popular options include:
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Bluevine (great for online-only practices)
Step 7: Secure Malpractice Insurance
Understanding Malpractice Insurance
Malpractice insurance protects your practice against lawsuits stemming from claims of professional negligence or errors.
In the world of telemental health, this is a must. Even virtual therapists can face legal challenges from dissatisfied clients.
Most insurance plans cover legal fees, settlements, and administrative costs.
Selecting the Right Insurance Provider
When shopping for a policy, pay attention to:
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Coverage Amount: Most therapists opt for $1 million per claim/$3 million annual aggregate.
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Tail Coverage: If you ever close your practice, this covers claims filed afterward.
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Telehealth Coverage: Confirm the plan includes services delivered via video or phone.
Recommended providers:
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APA Insurance (for psychologists)
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CM&F Group (includes telehealth)
Compare quotes from multiple sources to ensure you’re getting the best deal for your specialty and location.
Step 8: Prepare Your Professional Resume
Highlighting Telehealth Experience
Even if you’re a seasoned therapist, your resume should reflect specific experience or training in telehealth. Credentialing panels, potential clients, or collaborators may review this to assess your fit for virtual care delivery.
Include:
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Specialized Training: Courses on HIPAA compliance in virtual settings, trauma-informed teletherapy, etc.
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Platform Proficiency: Mention experience with Zoom for Healthcare, doxy.me, TherapyNotes, or others.
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Client Outcomes: Brief success stories or metrics showing client improvement remotely.
Resume Best Practices for Mental Health Professionals
Your resume should be clean, organized, and tailored. Here’s a format to follow:
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Header: Full name, credentials (e.g., LCSW), phone, professional email, LinkedIn.
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Summary: A 2-3 line elevator pitch about who you are and your clinical philosophy.
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Licensure & Certifications: Include states licensed in, DEA number (if applicable), board certification, and telehealth credentials.
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Education: Start with your highest degree.
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Professional Experience: Bullet-point format with clear dates and duties.
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Professional Affiliations: APA, NASW, or other memberships.
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References: Optional; “available upon request” is fine.
Step 9: Set Up a Virtual or Hybrid Office
Benefits of a Virtual Office
A virtual office gives you a professional address without the cost of physical space—perfect for telemental health. It lends credibility, helps with Google business listings, and provides mailing services.
Options for Virtual Office Services in New York
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Regus (regus.com): Offers prestigious business addresses, mail forwarding, and access to meeting rooms.
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Opus Virtual Offices (opusvirtualoffices.com): Includes a corporate address, business phone, and receptionist services.
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Davinci Virtual Office (davincivirtual.com): Known for flexible packages with mail scanning, phone answering, and more.
If you’re thinking hybrid, look for shared office spaces with part-time availability like:
These give you a physical location for occasional in-person sessions while maintaining a primarily virtual model.
Step 10: Establish Communication Channels
Setting Up Virtual Phone and Email Systems
You’ll want a HIPAA-compliant, professional communication setup. Avoid using your personal number or Gmail. Instead:
- Phone Systems:
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RingCentral: VoIP phone, text, and video options with HIPAA compliance.
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Google Voice for Business: Great for startups.
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- Email Providers:
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Google Workspace: Set up a branded email (e.g., yourname@yourpractice.com).
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Paubox: Encrypted HIPAA-compliant email service.
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Utilizing Platforms like RingCentral and Zoom
For video sessions, you need secure, HIPAA-compliant platforms. The gold standards are:
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Zoom for Healthcare: Offers full HIPAA compliance, including a BAA.
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Doxy.me: Free and paid tiers, no download needed for clients.
Make sure whatever tool you choose is user-friendly for both you and your clients.
Step 11: Develop Your Online Presence
Creating a Professional Website
A well-designed website acts as your digital front door. It’s often the first impression clients get of your practice, so make it count. Include:
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About Page: Share your qualifications, approach, and personal story.
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Services Page: List your specialties—like CBT, trauma therapy, couples counseling, etc.
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Scheduling Feature: Integrate with your EMR or a platform like Calendly for booking.
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Contact Page: Include a secure form, phone number, and business address.
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Blog Section: Improve SEO by posting content regularly on mental health topics.
Use platforms like:
Hire a designer from Fiverr or Upwork if you want a polished look without DIY hassle.
Engaging with Social Media and Community Groups
Social media is free marketing and helps build trust with your audience. Platforms to consider:
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Instagram & Facebook: Share mental health tips, session availability, success stories (with consent), and events.
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LinkedIn: Ideal for networking with other professionals or healthcare groups.
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Reddit & Facebook Groups: Join therapy-related groups to exchange resources and establish expertise.
Pro Tip: Keep content educational and non-personal.
Always respect privacy laws and avoid offering individualized advice.
Step 12: Complete Insurance Credentialing
Understanding Credentialing Requirements
Credentialing allows you to accept insurance and be listed as an in-network provider.
It’s often a long and meticulous process but crucial for expanding your client base.
Insurers you’ll likely want to join in New York include:
- Medicare & Medicaid
- Aetna
- Cigna
- Humana
- 1199SEIU
- Healthfirst
- MetroPlus
- Fidelis Care
- WellCare
- Carelon
- UHC/Optum
- TRICARE
Navigating the Credentialing Process
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Get Organized: You’ll need your resume, malpractice insurance, state license, board certification, DEA number, and tax ID.
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Apply to CAQH: This is a centralized database used by many insurers. Create a profile at CAQH ProView.
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Submit Applications to Each Payer: Some will use CAQH; others require separate forms.
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Follow Up: Credentialing can take 60-120 days. Stay in contact and be ready to provide additional documents.
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Consider Outsourcing: We offer exclusive Credentialing services that can handle this for you.
Being in-network increases access for clients and often results in a more steady stream of referrals.
Step 13: Choose an EMR/EHR System
Importance of EMR/EHR in Telehealth
Electronic Medical Record (EMR) and Electronic Health Record (EHR) systems help you stay compliant, manage documentation, and simplify client care. Look for:
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HIPAA compliance
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Scheduling and billing integration
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Telehealth compatibility
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Client portal access
Comparing Popular EMR/EHR Platforms
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Tebra: Offers full practice management with billing, scheduling, telehealth, and a patient portal.
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TherapyNotes: Widely used by therapists; includes notes templates, scheduling, and billing tools.
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ICANotes: Built specifically for behavioral health, great for detailed clinical documentation.
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SimplePractice: Very user-friendly and packed with features like intake forms, telehealth, and superbill generation.
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Office Ally: Budget-friendly EHR with customizable features; a good starting point for newer practices.
Many platforms offer free trials. Test a few before committing.
Step 14: Select a Telehealth Platform
Features to Look for in a Telehealth Platform
The right telehealth platform ensures a smooth, professional experience for you and your clients. Important features include:
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HIPAA Compliance: Must provide a BAA (Business Associate Agreement).
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No App Download Required: Increases ease of access for clients.
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Session Recording: Optional, but useful for supervision or legal compliance (get consent).
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Payment & Scheduling Integration: Speeds up workflows.
Overview of doxy.me and Other Options
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doxy.me: Free tier available, easy to use, secure. Great for startups.
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Zoom for Healthcare: Offers full functionality for group and individual therapy, with BAA support.
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VSee: Combines telemedicine with intake forms and payment processing.
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TheraPlatform: Combines video sessions with EHR features.
Always choose a platform that aligns with your clinical and business needs.
Step 15: Set Up Billing Services
Managing Billing for Telehealth Services
Billing can be one of the trickiest parts of running a practice. Between insurance claims, copays, and denials—it’s easy to feel overwhelmed. Consider:
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In-House vs Outsourced: Do you want to hire someone to handle it or learn billing yourself?
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Software Integration: Your EMR should ideally integrate with billing tools.
Exploring Billing Service Providers
If outsourcing:
Consider our service as we focus on startups with best prices.
Other options are.
If DIY, platforms like SimplePractice and TherapyNotes offer built-in billing tools with claim tracking, electronic payments, and reporting.
Make sure you stay compliant with CPT coding and insurance rules specific to telehealth services.
Step 16: Integrate a Payment Gateway
Importance of Secure Payment Processing
Collecting payments—especially in telehealth—isn’t as simple as swiping a card.
You need a secure, HIPAA-compliant method that integrates with your workflow and makes the process seamless for clients. Payment gateways allow you to:
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Automatically collect session fees
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Send invoices
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Accept credit, debit, or HSA cards
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Store billing info securely
Having this set up reduces missed payments and improves your professional image.
Available Options
Here are some top picks:
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Stripe: Offers seamless integration with platforms like SimplePractice and TherapyNotes. Secure, developer-friendly, and highly reliable.
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QuickBooks Payments: Ideal if you’re using QuickBooks for accounting—connects everything in one dashboard.
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Authorize.net: Offers advanced features and is widely used in healthcare, but setup can be more technical.
Most EMR platforms integrate directly with at least one of these providers. Look for automated invoicing, saved client payment methods, and real-time transaction tracking.
Also consider adding payment options like PayPal or Zelle for flexibility—just ensure they meet HIPAA and PCI compliance standards.
Step 17: Establish Front Desk Operations
Streamlining Appointment Scheduling
Even if you’re a solo practitioner, having a front desk workflow is essential. It can be digital, automated, or delegated—but it must exist. Efficient front desk management includes:
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Booking and rescheduling
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Confirming appointments
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Intake form follow-ups
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Handling basic client questions
Options:
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Automated tools: Most EMRs have client portals with appointment management (SimplePractice, TherapyNotes).
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Virtual assistants: Hire help through Belay or Upwork to manage scheduling, emails, and reminders.
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Call answering services: Smith.ai and Ruby Receptionists offer HIPAA-compliant virtual receptionists trained in healthcare.
Tools for Managing Front Desk Tasks
Equip your “virtual front desk” with these tools:
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Calendly + Zoom + Stripe: Book sessions, host them, and get paid automatically.
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Jotform or IntakeQ: Create custom, secure intake and consent forms.
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Google Workspace: Manage emails, calendars, and client communication in a professional setting.
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Slack or Trello (if you’re a team): Streamline internal communication and task tracking.
Having a clear client onboarding process also improves professionalism and builds trust from day one.
Conclusion
Starting your telemental health practice in New York is no small feat—but it’s absolutely doable with the right roadmap.
From legal requirements like licensure and DEA registration to business essentials like malpractice insurance, EHR systems, and payment gateways—each piece matters in creating a compliant, client-friendly, and sustainable virtual therapy practice.
Build a solid foundation, automate what you can, and always stay client-focused.
With this guide, you now have every step in place to confidently launch and scale your own telehealth therapy business in the Empire State.
Remember: every great journey starts with a single session—your practice could be that turning point in someone’s life.
FAQs
1. Can I run a fully virtual therapy practice in New York?
Yes, as long as you are licensed in New York and comply with HIPAA, you can offer 100% virtual mental health services legally.
2. Do I need a physical address for a virtual practice?
Yes. Even virtual practices require a physical address for legal, banking, and insurance purposes. You can use a virtual office address service like Regus or Davinci.
3. How long does insurance credentialing take?
It can take anywhere from 60 to 120 days or more, depending on the insurance provider. Start early and consider using a credentialing service to speed up the process.
4. Is Zoom HIPAA-compliant for therapy sessions?
Yes, but only if you subscribe to the “Zoom for Healthcare” plan and sign a Business Associate Agreement (BAA) with them.
5. What if I want to expand my telehealth practice to other states?
You must obtain licensure in each state you want to practice. Interstate compacts like PSYPACT may help if you’re a psychologist, but always verify individual state rules.
