The Imperative of Supporting Private Practice Therapists Over Venture Capitalist Firms

The future of therapy shouldn't be dictated by profit margins. Venture-backed platforms may promise convenience, but at what cost?

As the landscape of mental health care evolves, the growing influence of venture capitalist (VC) firms in the therapy industry is a cause for concern. The allure of convenience and accessibility promised by digital platforms (whose names I will not say, because they like to sue people) masks a deeper issue: the commodification of therapy. To ensure the highest standards of care and uphold ethical practices, it is crucial to support private practice therapists over these profit-driven firms that have a history of putting profit over client rights and well-being. This not only preserves the integrity of the therapeutic profession but also bolsters local small businesses that are the backbone of our communities.

The Value of Private Practice

Private practice therapists offer a level of personalized care that is fundamental to effective therapy. The therapeutic relationship is not a mere transaction; it is a deeply personal and evolving connection that requires time, trust, and mutual understanding. IResearch supports the therapeutic relationship is the number one determinate of effective outcomes. In private practices, therapists have the flexibility to adapt their methods to suit individual client needs, fostering a supportive environment that encourages genuine healing and growth.

In contrast, VC-backed digital platforms often prioritize speed and efficiency over quality. Therapists are incentivized to engage in quick, superficial interactions, undermining the depth and effectiveness of therapy. Side Husl notes about one particular firm’s therapist pay structure: “You are also compensated by how many words are written to you, by the client, AND, how many words you write to the client,” which may encourage therapists to focus more on word count than substance to make a livable wage. This approach mirrors gig economy models, where volume trumps value—an inherently flawed match for the nuance and sensitivity mental health care demands.

Ethical Standards and Professional Integrity

The pressures exerted by VC firms to maximize profits can lead to practices that compromise ethical standards. There have been instances where therapists on these platforms were encouraged to provide services in states where they were not licensed, putting their credentials and clients at risk. The ClearHealthCosts article outlines how some VC-funded platforms have even begun using AI to write session notes—often inaccurately—without the therapist’s input or consent. These AI-generated notes have been reported to fabricate session content, opening the door to serious legal and ethical breaches, while eroding client trust.

In private practice, therapists operate autonomously and are accountable to ethical guidelines, their licensing boards, and their clients, not to investors. This professional independence is essential for building and maintaining the safety and integrity of the therapeutic relationship.

Supporting Local Economies and Community-Centered Care

Choosing private practice therapists also means supporting local small businesses. These practitioners are embedded in their communities, contributing to local economies and tailoring services to meet specific needs. Private practitioners are more likely to collaborate with other local professionals, building interdisciplinary networks of support that are holistic and client-centered. Local therapists work hard to network with other reputable clinicians for referrals and higher levels of care, resulting in a deeply personalized experience. In comparison, large VC platforms allow you to change clinicians as often as you want, without referrals and without asking about waht could provide a better therapeutic fit.

Large VC platforms, by contrast, centralize profits and extract wealth from the communities they serve. The Insurance Maze notes that many of these companies make bold claims about affordability and access while exploiting loopholes to avoid offering true insurance coverage or transparency in billing—another move that leaves clients with higher bills and fewer choices.

Solutions for a sustainable future of therapy in texas

The future of ethical, effective therapy depends on conscious action at multiple levels:

1. License Reciprocity: A national framework for license reciprocity would allow therapists to offer services across state lines without lowering standards of care or resorting to ethically murky practices. The Counseling Compacts for Licensed Professional Counselors is currently in the Texas House of Representatives. If it does not pass this legislative session, it will be another two years before it can be represented.

2. Professional Integrity: Therapists should avoid joining platforms that compromise care and encourage clients to seek treatment with independently practicing, licensed clinicians. If therapists refuse to participate in the exploitation of both therapist and client, then the companies cannot continue with their profit-first business model.

3. Specialization: Private practice therapists can distinguish themselves through advanced training and niche expertise, offering depth of care that generalized, high-volume platforms cannot replicate.

4. Advocacy: Therapists must advocate for laws that ensure fair insurance reimbursements, simplify credentialing, and eliminate barriers to private practice. This includes contacting legislators and voting in local and state elections.

5. Public Education: Clients deserve to know the difference between care from a licensed private practice therapist and a tech-driven therapy mill. Public-facing blogs, social media, and reviews can help illuminate these differences.

6. Accountability for Tech Platforms: Mental health professionals and clients alike can write letters, post reviews, and demand transparency from therapy platforms that mislead users or compromise care through automation or unethical policies. Additionally, consumers can stay informed of current FTC proceedings and alleged HIPAA violations against these large VC companies.

conclusion

The encroachment of venture capital into the mental health space is not just a business shift, it’s a threat to the quality, safety, and soul of therapy. Private practice therapists offer a level of care, community integration, and professional integrity that no tech platform can match. Supporting them means preserving therapy as a healing relationship, not a commodity.

Sources:

- https://mentalhealthmatch.com/articles/for-therapists/end-private-practice-therapist
- https://sidehusl.com/betterhelp/
- https://theinsurancemaze.com/platforms/
- https://clearhealthcosts.com/blog/2025/03/therapy-notes-by-ai-create-false-narratives-therapists-say/