It's also possible the director saw the conflict of interest from having a dual relationship and this was their way of withdrawing the offer without having to admit they made a mistake. I know dual relationships are typically frowned upon. If you like the idea of having a position like this, don't give up hope. You could try looking at another clinic. I know it would not be the same as working with your therapist, but if my memory serves me correct, and frankly it may not so I apologize if I am not right, I think it was you that said in a previous post that someone said that your therapist is hard to work with. If you took the job and something happened at work between the two of you or with another coworker, discussing it in therapy may be awkward. Just one example. Good luck