Video Summary:

In this transcript from a video by Andy Gale from Gale&Vallance, he explains how starting a private practice as a therapist in California involves more than just passion—it requires knowledge, preparation, and avoiding common legal missteps. He highlights the challenges faced by a therapist trying to navigate Medi-Cal enrollment and the consequences of receiving a provider denial.

The story shared here is a candid reminder that relying solely on friends or general online resources (like LegalZoom) may lead to serious problems, including compliance issues that jeopardize your ability to accept insurance. The speaker learned the importance of legal structure, proper corporate setup, and timely applications—all critical for therapists planning to start a private practice in California.

Disclaimer: This video and transcript do not constitute legal advice. For assistance with your particular case, we strongly recommend consulting a qualified healthcare or business attorney.

The Outside Perspective

00:00:14.089 – 00:00:39.629

It all looks so easy from the outside.
And I think they’re trying to be encouraging and so, you know, go for it. Of course, I’m very glad we did, but it seemed to take us longer than I would have thought based upon the template that seemed to be apparent to me.
That was probably one. I think just, you know, no one wants to be discouraging to friends, and you know, someone has an endeavor—of course we want to encourage it.
The negative stuff didn’t get spoken up very much. And so that would probably be one with regard to friends sort of providing encouragement and information.

Realizing What We Didn’t Know

00:00:46.440 – 00:00:54.510

And then the second would be, we didn’t know what we didn’t know.
It became obvious little by little.

Medi-Cal Enrollment Denial

00:00:54.510 – 00:01:28.840

And the last piece was when we had applied to become enrolled in the Medi-Cal system as providers.
And it really wasn’t anything we saw. I believe it’s a new state mandate that if you accept insurance, you need to also be enrolled in Medi-Cal.
Got to the website, started filling out the application—it took me hours.
You know, it’s very lengthy with a lot of document attachments and whatnot.
Expecting to get this approval, and you get a denial instead.
And it was something very obvious, like, “You’re not a proper corporation.”
You know, it wasn’t a small thing—it was a big thing.

The Fallout of Denial

00:01:35.090 – 00:02:12.569

Well, I hope there’s no fallout. But, you know, I don’t yet know the answer to that question.
They have allowed a period of reallocation to occur if you’re denied.
They’ll actually—it seems like—being very generous, at least the informal conversations I’ve had on the phone with the insurance companies.
The clients come through them, so of course they need to be updated and kept in the loop.
And so they’ve just said, “As long as you’re still in application, then you know you’re fine. Just continue to work with them, give them what you need.”
But the true fallout, if a denial was permanent, it means you lose your client base that’s insurance-paid for that particular plan.
And so I don’t yet have the answer. I’m hoping that there is none.
It seems like they’ve been generous to provide some leeway.

Final Words of Advice

00:02:25.890 – 00:02:27.769

Know your population that you’re going for, and work to serve them well.

Conclusion: Key Takeaways on How to Start a Private Practice as a Therapist in California

Setting up a therapy private practice in California is not just about client care—it’s about setting up your business correctly from day one. This video sheds light on the hidden hurdles therapists often face, particularly with Medi-Cal enrollment and legal compliance. The biggest lesson? Get professional help early to avoid costly missteps.

For more expert guidance on how to start a private practice as a therapist in California, especially if you plan to accept insurance or work with state programs, consider speaking with a legal professional familiar with healthcare formation in the state.