Value & Viability
In the early years of psychology as a profession, psychiatrists were the only professionals recognized as qualified to diagnose and treat mental illnesses independently, and were the only professionals eligible to receive third-party payments for their services.
Doctoral psychologists and master’s-level clinicians were allowed to diagnose and treat mental illnesses, but only under supervision by psychiatrists.
In the 1970s, PhD-level psychologists gained recognition as competent to diagnose and treat mental illnesses, despite the fears of psychiatrists who warned, “psychologists are dangerous to the public and inadequately trained.” Master’s-level psychologists were then allowed to be supervised by either psychiatrists or PhD-level psychologists.
In the decades since, a growing body of research has confirmed the effectiveness of services provided by master’s-level psychologists as well as other master’s level practitioners in allied disciplines, such as social work and pastoral counseling. By the 1990s, virtually all master’s-level practitioners from the allied disciplines were recognized as competent to diagnose and treat mental illnesses and became eligible to receive third-party payments directly.
Only master’s-level psychologists remain barred by law from independent practice for the duration of their careers. Because they do not practice independently, most third-party payors refuse to reimburse directly for their services.