Therapists have the education, license, and clinical training required to prepare them for their day-to-day work with clients. But those things also come with restrictions: licenses are usually state-specific, and each state’s laws set forth a therapist’s legal responsibilities (like mandatory reporting). This leaves some therapists eyeing the “coaching” industry and profession with envy and asking, “Why don’t the same rules apply?”Therapy and coaching are very different things.
Or at least they should be very different things! Therapists are healthcare providers, while coaches are not. While every state requires therapists to be licensed, no state regulates or licenses coaches. Due to the lack of license requirements, coaches do not necessarily have: 1. Appropriate training or education 2. Oversight by a regulatory body 3. Obligation to comply with HIPAA 4. Mandatory reporting requirements 5. Clinical experience A coach is not a healthcare professional and cannot do work that infringes on a therapist’s legal scope of practice. Under the law, coaches cannot do any of the following: 1. Bill their services to health insurance companies. 2. Offer the breadth of care and services provided by therapists. 3. Diagnose or treat mental health conditions. 4. Describe their services using any of the terms that the law protects for licensed professionals. Any coach who delivers services that mirror the scope of practice of a licensed psychotherapist risks felony charges. In Illinois, for example, regulatory authorities have sanctioned unlicensed persons who step into the realm of licensed mental health care. The following examples are from disciplinary reports from IDFPF (Illinois Department of Financial and Professional Regulation): 1. An unlicensed person was penalized for practicing medicine without a license because she owned a business that offered psychiatry services — even though she performed only administrative duties. 2. An unlicensed person practiced licensed clinical social work for a decade and billed his services to insurance under a licensed provider’s credentials. 3. An unlicensed person who used the term “social worker” was fined and sanctioned for engaging in the unlicensed practice of social work. 4. A therapist who billed an unlicensed person’s services to insurance was sanctioned for aiding and abetting the unlicensed practice of social work. Other states have been similarly strict. For instance, Oregon found that a woman’s “coaching” services were professional counseling services and sanctioned her.Psychotherapists Who Practice as “Coaches”
Licensed psychotherapists may view the grass as greener in the coaching industry. However, while it may be tempting for therapists to call themselves coaches to avoid regulatory oversight, doing so can create more (not fewer) headaches. Coaches are subject to the same legal regulations as therapists — they just have a much harder time satisfying them! Therapists have the credentials, practice acts, and legally articulated role in population health. Meanwhile, coaches’ conduct isn’t regulated by any state’s law, but if they step into any of the areas within the scope of therapists’ practice, they, too, will face legal consequences. In the end, there are no shortcuts to becoming a healthcare provider. This article is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between Jackson LLP Healthcare Attorneys and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.
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