What to Expect as a Private Practice Salary in California
What to Expect as a Private Practice Salary in California
The Rise in Demand for Mental Health Services in California
Following nationwide trends, California has seen a rise in demand for mental health services since the COVID-19 pandemic began. Kaiser Permanente reported a 33% increase in need for mental health services while noting an ongoing shortage of qualified mental health clinicians to meet this demand. That is to say: there is a huge need for mental health services in California and therefore an opportunity to make a comfortable living with a private practice in the state. However, the journey to financial success in private practice can be a bumpy ride. In this article, we will explore what you can expect in terms of salary as a private practice therapist in California, along with the latest data on therapist salaries in the state.
Private Practice in California
The State of California has some of the highest costs of living in the country, and so services of all kinds charge on the higher end—including mental health services. Because of this, California has relatively high rates of insurance reimbursement for mental health services. This can help therapists generate a more stable income compared to states with lower reimbursement rates.
Factors Affecting Private Practice Salaries
Private practice salaries in California can vary widely based on a variety of factors, including:
Location: The city or region where you establish your practice can significantly impact your potential income. Coastal cities like San Francisco and Los Angeles tend to have higher living costs and, in turn, higher therapy fees. In contrast, inland cities and rural areas may have lower costs of living but also potentially lower client demand.
Specialization: The type of therapy you practice can also impact your income. Specialized therapists, such as those in areas like marriage and family therapy or clinical psychology, often command higher fees due to their expertise and/or high demand.
Experience: Your years of experience in the field can influence your salary. Experienced therapists with a strong reputation may attract a higher volume of clients and, consequently, charge higher rates.
Marketing and Networking: Your ability to market your services and build a client base can significantly affect your income. Effective networking and marketing strategies can help you attract more clients and grow your practice.
Latest Data on Therapist Salaries in California (2023)
Let's take a closer look at the latest data on mental health clinician salaries in California. Please note that these figures are approximate and may vary depending on individual circumstances. These average salaries are simply to give you an idea of what to expect if you’re entering the field or if you recently started your private practice and want to know what other salaries may look like in 2023.
Marriage and Family Therapists (MFTs):
The average salary for MFTs in California is around $77,469 per year in 2023.
Entry-level MFTs can expect to earn an average of about $45,000 per year.
MFTs practicing in metropolitan areas like Los Angeles and San Francisco generally earn higher salaries due to the increased cost of living.
Clinical Psychologists:
The average salary for clinical psychologists in California is approximately $122,000 per year.
Entry-level clinical psychologists can earn around $92,000 per year.
The Bay Area, including San Francisco and Silicon Valley, typically offers higher salaries for clinical psychologists due to the region's affluence and demand for mental health services.
Licensed Professional Clinical Counselors (LPCCs):
The average salary for LPCCs in California is around $79,000 per year.
Entry-level LPCCs can expect to earn an average of $56,000 per year.
LPCCs practicing in urban areas tend to earn more than those in rural locations.
Social Workers (LCSWs):
The average salary for Licensed Clinical Social Workers (LCSWs) in California is approximately $86,000 per year.
Entry-level LCSWs can earn around $51,000 per year.
LCSWs in urban areas like Los Angeles and San Diego generally earn higher salaries.
Psychiatric Nurse Practitioners (PMHNPs):
The average salary for PMHNPs in California is approximately $134,000+ per year.
Entry-level PMHNPs can earn around $131,000 per year.
PMHNPs in metropolitan areas often receive higher salaries.
Tips for Maximizing Your Private Practice Income
While the data provides an overview of therapist salaries in California, there are several strategies you can employ to maximize your private practice income:
Communicate your strengths and expertise: As we cover in The Complete Private Practice Toolkit, it isn’t necessary for your practice to have a niche—for example, a narrow population or a DSM-V diagnosis or an evidence-based modality. However, it can help prospective clients to clearly and prominently list on your practice website what areas you have the most experience with, and the client challenges you can help with.
Network: Build a robust professional network by connecting with local healthcare providers, other therapists, and community organizations. Referrals can be a valuable source of clients. We talk about effective strategies for doing this in our online course, too!
Invest in Your Education: As you already know, licensed clinicians are required to take continuing education every year. This is an opportunity for you to learn more to broaden your client caseload. Are there any presenting client challenges where you want to become more competent?
Conclusion
Private practice in California offers numerous opportunities for therapists to build successful and financially rewarding careers. With a diverse and growing population, high demand for mental health services, and favorable insurance reimbursement rates, therapists can expect competitive salaries. However, several factors, such as location, specialization, experience, and marketing efforts, can impact your income. By networking with other clinicians and just learning a few principles and easy-to-use tools, therapists can build thriving private practices while helping serve a manageable caseload of clients.
