Can Minnesota Therapists Pay a Percentage Billing Fee?

Minnesota therapists need a license-specific answer before paying an outside biller a percentage. The psychology statute expressly addresses fee splitting and the relationship between fees, services, and responsibility. It should not be flattened into a single rule for every kind of mental-health professional.

What does Minnesota’s psychology statute say?

Section 148.941, subdivision 2(a)(11), identifies fee splitting as disciplinary grounds. Its examples include referral remuneration and dividing client fees unless the division is proportional to services and responsibility. It also contains specified exceptions, including certain distributions within professional or group arrangements.

The text does not establish that any arbitrary billing percentage is acceptable. Nor does its existence alone prove that every payment based on collections is prohibited for every profession. A psychologist’s proposed arrangement needs analysis against the actual language and applicable rules.

Does that rule answer the question for social workers and counselors?

It is a psychology provision. Identify the governing requirements for an LICSW, LPCC, LMFT, physician, or other clinician rather than assuming one statute covers all of them. A group using several license types should make those differences explicit when requesting review.

List who provides the care, who contracts with the vendor, and what work the vendor performs. If the vendor also supplies patients, manages the business, or controls payment decisions, include those functions. Counsel needs the complete arrangement to give a useful answer.

How can I evaluate the services behind the fee?

Ask for an itemized scope rather than just a percentage. Describe eligibility checks, claims preparation, denials, payment reconciliation, patient balances, reporting, and credentialing work. Record which tasks stay with the practice and which the vendor owns.

Then compare proposals against the same workload. Your practice’s original-claim volume, payer mix, data quality, and existing unpaid claims can change the work needed. A percentage by itself does not describe that effort or prove that the compensation is appropriate.

Would a fixed administrative fee be simpler?

A fixed fee can be an alternative to evaluate, but a label is not a complete compliance analysis. It should buy identifiable work at a defined price. Ask whether the fee changes with claim count, clinical revenue, added clinicians, or another factor, and how changes are approved.

Bomi prefers a collections percentage where permitted because both teams benefit when appropriate payment reaches the practice. When that compensation is prohibited, its applicable restricted-state per-claim arrangement changes the formula. This guide does not classify every Minnesota practice as restricted.

What should I bring to a Minnesota contract review?

Bring clinician licenses, service locations, entity information, the proposed scope, a sample invoice, and a diagram of how payer deposits reach the practice. Ask the reviewer to identify which profession’s requirements control and what facts support the chosen fee structure.

Also ask the biller how it tracks unresolved claims. Whatever structure is permissible, a practice still needs to know who will follow a denial and what information is needed next. This is educational information; the cited statute was checked October 23, 2026.

Frequently Asked Questions

Does Minnesota’s psychology law mention fee splitting?

Yes. Section 148.941 includes fee-splitting provisions and specified exceptions. Apply the actual text to the proposed arrangement.

Can every Minnesota therapy practice use the same legal conclusion?

No. Identify each clinician’s profession and governing rules. A psychology statute alone does not settle every other license’s contract.

Sources and scope

Minnesota §148.941, subd. 2(a)(11)

Related questions

Read the state fee-splitting overview

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