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Who counsels the counselor? Are you building systems to prevent risk, or patching problems after they appear? When was the last time you checked whether your employment practices could stand up to legal scrutiny?
In this episode, John Gardner breaks down the best legal steps to take when building and growing a private practice, from hiring the right team to staying compliant with employment laws.
Podcast Sponsor: Headway
I want to thank Headway for sponsoring this episode. If you run a group practice, you know that accepting insurance can be overwhelming. Between credentialing, billing, and payroll, the admin side can easily take over your week. Headway was built to help you handle this — and they’re the only platform designed specifically for in-network group practices.
Whether you’re growing your team or running an established practice, Headway makes the business side easier with faster credentialing, higher per-session rates, and biweekly payments your team can count on.
They work with therapy, psychiatric, and hybrid groups — and there are no subscription fees. Just the support you need to run your practice with ease.
Run your best group practice with Headway — trusted by thousands of group practice leaders to simplify insurance admin and reach more people through in-network care.
Curious how Headway can work for you?
Meet John David Gardiner
In This Podcast
- Why practice owners must know what they don’t know
- How proactive systems prevent costly legal missteps
- Why crisis-based consulting is expensive and inefficient
- How preparation and compliance prevent liability
Why practice owners must know what they don’t know
Gardiner opens with a personal story about taking on a drywalling project himself, only to realize mid-way that he had no idea what he was doing.
He uses this to illustrate a broader point: self-reliance is valuable, but overconfidence in unfamiliar territory can be dangerous.
Business owners must identify their blind spots early, especially when it comes to employment and compliance.
This was not a good use of my time. Maybe it’s good for future stories … Not that I’m above or better than it – you know, if you need drywalling, let me know! – but it wasn’t a good opportunity cost for me … It’s important that I know what I don’t know – and I accept that. (John David Gardiner)
Recognizing your limits isn’t a weakness. They are forms of professional wisdom that protect both your business and your license.
How proactive systems prevent costly legal missteps
While it’s essential to work with lawyers, Gardiner cautions against letting outside experts run your business. Your attorney should advise you, not manage your operations.
Outsourcing your judgment can lead to a business structure you don’t fully understand, and can’t fix when problems arise.
Don’t hand over the keys to your practice to any professional, let alone an attorney. Why is that? … You do not want an attorney to run your business. It is very expensive; we’re not therapists. (John David Gardiner)
Instead, stay informed and maintain ownership over every key decision. It is better to know what’s happening in your contracts, payroll, and compliance processes, even if you’re not the one executing every detail.
Why crisis-based consulting is expensive and inefficient
John also emphasizes the cost difference between prevention and triage. Waiting until something goes wrong – a complaint, audit, or lawsuit – multiplies both your stress and your expenses.
By the time you are in a crisis, your options are limited, and even good advice may arrive too late to avoid major costs.
If you come to a service professional in triage, the cost goes up… Had I talked to you three months ago, what I would have recommended was X. Now we have to go to Z, and Z costs more. (John David Gardiner)
He advises regular check-ins with professionals before problems arise, especially around tax status, documentation, and staff classification. Being proactive means that you can build up your systems to evolve alongside the law, rather than lag behind it.
How preparation and compliance prevent liability
A recurring issue John Gardiner sees among practice owners is cutting corners on payroll or classification to save money.
He highlights that splitting employee hours between two entities or mislabeling employees as contractors to avoid overtime pay is illegal and can lead to serious financial penalties.
[For example], “I pay [my clinicians] out of two different companies … so I can avoid overtime” – that’s 100% wrong! (John David Gardiner)
True risk management comes from building transparent, compliant systems that can stand up to audits. Be mindful that every shortcut that is taken for the sake of convenience can turn into a long-term liability that costs far more to fix than it saved!
Sponsors Mentioned in this Episode:
Curious how Headway can work for you?
Useful links mentioned in this episode:
- Find out more at Bodman Law and connect with John on LinkedIn.
- Check out our Practice Academy!
- Sign Up to the Group Practice Boss Conference!
Check out these additional resources:
How Dakarai Larriett’s Wrongful Arrest Sparked a Push for Police Accountability | POP 1295
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Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners who are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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