How to Start a Therapy Group: Format, Ethics & Billing

Starting a therapy group requires decisions about format, size, member selection, logistics, and legal considerations before you ever hold your first session. Whether you’re a newly licensed clinician or an experienced therapist expanding into group work, the process breaks down into a series of concrete steps, from choosing your group’s purpose to billing for sessions.

Define Your Group’s Purpose and Format

Before anything else, get clear on what kind of group you’re running. Process-oriented groups focus on interpersonal dynamics and emotional exploration. Members learn from how they relate to each other in real time. Psychoeducational groups teach specific skills, like coping strategies for anxiety or relapse prevention. Support groups are less structured and center on shared experience. Each type demands different facilitation skills, attracts different members, and runs on a different timeline.

You’ll also need to decide between an open or closed format. In a closed group, all members start together and no new members join after the group begins. This builds stronger group cohesion. In an open group, new members can join as spots open up, which is more practical for settings with high turnover like hospitals or community clinics. Research comparing the two formats has found no significant difference in clinical outcomes, with both producing substantial symptom reduction. The closed format does tend to foster stronger bonds between members, but the open format is more economical and widely used in practice. Your choice depends on your setting, your client population, and how long the group will run.

Choose the Right Group Size

The general recommendation is 5 to 12 members, but the ideal number depends on your group’s purpose. For deep process-oriented work where each person needs significant airtime, 5 to 8 members is the sweet spot. You get enough diversity of perspectives without losing the intimacy that makes group therapy powerful. For psychoeducational groups, you can go larger, up to 12, since the format relies more on teaching and structured exercises than on individual sharing.

Specialized populations may need smaller groups. Groups for people with severe mental illness or acute psychiatric conditions often work best with 6 or fewer members. If you’re running your first group, starting smaller gives you more control and lets you build facilitation skills before scaling up. Plan to recruit a few more members than your target size, since early dropout is common.

Screen and Select Members

Individual screening interviews are essential. You’re looking for two things: whether this person is a good fit for the group, and whether the group is a good fit for this person. During screening, assess motivation, ability to tolerate group interaction, and whether the person’s issues align with the group’s focus.

Some conditions make group participation difficult or disruptive. People experiencing active psychosis, severe substance dependence as their primary issue, or significant cognitive impairment from brain injury typically need individual treatment first or a group specifically designed for those concerns. Someone in acute crisis may not be stable enough to participate without dominating the group’s focus. These aren’t permanent exclusions; they’re about timing and fit.

Screening also gives potential members a chance to ask questions, learn what to expect, and decide if the group feels right. This pre-group contact reduces dropout. People who understand the format and feel prepared are far more likely to show up consistently.

Understand What Makes Groups Therapeutic

Effective group facilitation means understanding the mechanisms that actually produce change. The psychiatrist Irvin Yalom identified several therapeutic factors that operate in group settings, and knowing them helps you design sessions that activate them rather than leaving healing to chance.

The most important factor is group cohesion: the strength of the relationships between members. It’s the group therapy equivalent of the therapeutic alliance in individual work, and everything else depends on it. Universality, the realization that others share your struggles, is often the first therapeutic experience new members have. It counteracts the isolation that drives many people to therapy in the first place. Instillation of hope happens when members see others improve, giving them evidence that change is possible.

Other factors include altruism (members benefit from helping each other, not just receiving help), catharsis (the relief of expressing emotions in a safe space), interpersonal learning (getting honest feedback about how you come across to others), and the development of social skills through real-time practice. Your job as facilitator is to create the conditions where these factors can emerge naturally. That means protecting group safety, encouraging honest interaction, and drawing connections between members’ experiences.

Set Up Your Physical Space

The room matters more than you might think. You need enough space for everyone to sit in a circle without feeling crowded. For a group of up to 12 members plus a facilitator, roughly 240 square feet works well, though smaller groups can use smaller rooms. Chairs should be arranged in a circle or oval so every member can see every other member. Avoid tables, which create a barrier and shift the dynamic toward a classroom feel.

Acoustic privacy is critical. Members will not speak openly if they can be overheard. Choose a room with solid walls (not thin partitions), away from waiting areas and reception desks. If your space has sound issues, a white noise machine outside the door is a simple fix. The room should also be accessible from a discreet entrance when possible, so members don’t feel exposed walking through a busy clinic to attend a therapy group.

Handle Legal and Ethical Requirements

Group therapy introduces confidentiality challenges that don’t exist in individual work. You can control what you as the therapist disclose, but you cannot legally enforce confidentiality among group members. In most states, there is no legal confidentiality privilege between group members. This needs to be stated clearly before the group begins.

The standard practice is to have every member sign a group confidentiality agreement that explains this reality. The agreement should spell out that members are ethically expected to keep what’s shared in group private, but that the therapist cannot guarantee other members will do so. It should also describe how members can discuss their own progress outside of group without identifying other participants.

Your informed consent document for group therapy should cover:

  • Confidentiality limits: what you can and cannot enforce, and what members agree to
  • Risks and benefits: the potential emotional discomfort of group work alongside its advantages
  • Group expectations: policies on punctuality, attendance, fees, physical contact between members, and socializing outside the group
  • Outside contact policy: many groups require members to report any contact with other members outside sessions

The American Group Psychotherapy Association recommends discussing all of these during the screening process, not just handing someone a form to sign.

Structure Your Sessions

Most therapy groups meet weekly, with sessions lasting 60 to 90 minutes. Some groups, particularly those in intensive outpatient programs, meet more frequently. Sessions of 120 minutes are occasionally used for groups that need more time, such as those combining psychoeducation with process work, but 90 minutes is the most common format for outpatient groups. Biweekly meetings can work for some populations but make it harder to build momentum and cohesion.

A typical session structure includes a brief check-in (5 to 10 minutes), a working phase where the group’s main therapeutic activity happens (40 to 70 minutes), and a closing that includes reflections and previews the next session (5 to 10 minutes). The check-in gives everyone a chance to arrive psychologically and flag anything pressing. The closing prevents sessions from ending abruptly after emotionally intense work. Consistency in this structure builds safety over time. Members learn what to expect and can regulate themselves accordingly.

Document Each Session Properly

Group therapy documentation requires both a group-level note and an individualized note for each member. The group note covers the date, session topic, therapeutic approach used, and general group dynamics. The individual portion documents each member’s participation level, their response to the session, how the group addressed their specific treatment goals, and planned next steps.

Privacy rules add a layer of complexity. Never include one client’s name in another client’s medical record. You should maintain a separate participant attendance list that is not kept in any individual chart. Each person’s note should describe their experience without identifying who else was in the room or what specific members said. This is both a HIPAA requirement and a basic ethical practice.

Bill Correctly for Group Sessions

The billing code for group psychotherapy is CPT 90853. To bill under this code, several conditions must be met: the session must include two or more patients (typically 6 to 12), a licensed clinician must lead structured psychotherapy (not just education or peer support), each participant must have a mental health diagnosis, and the session must focus on treatment.

Reimbursement is per participant, not per group. Medicare typically reimburses $25 to $40 per patient per session. Commercial insurance often pays more, particularly in intensive outpatient or behavioral health settings. Each participant needs their own documentation connecting the group session to their individual treatment plan. Sessions generally need to run 45 to 60 minutes to qualify for billing. Running a group of 8 members at even modest reimbursement rates makes group therapy financially viable in a way that compares favorably to individual sessions on a per-hour basis.

Plan for Common Early Challenges

Dropout is highest in the first few sessions. Members who feel confused about the group’s purpose, overwhelmed by the format, or disconnected from other members are the most likely to leave. Thorough screening and pre-group preparation are your best prevention tools. Some facilitators hold a pre-group orientation session where members meet each other and learn the ground rules before the group officially starts.

Dominance by one or two members is another early challenge. Some people fill silence compulsively, while others withdraw. Your job is to actively manage airtime without shaming anyone. Phrases like “Let’s hear from some folks who haven’t spoken yet” or gently redirecting a lengthy share are basic facilitation tools that protect group balance. Silence itself is not a problem to solve. It often signals that members are processing, and learning to tolerate it is part of the therapeutic work for everyone, including you.

If you’re new to group facilitation, co-leading with an experienced group therapist for your first group is one of the most effective ways to build skills. You get real-time modeling, a second perspective on group dynamics, and someone to debrief with after sessions. Many experienced group therapists started exactly this way.