Mar 08 2010
What You Need to Know About Contracting With Managed Care
Early in my career,I naively believed that the way to build a strong and independent practice was to contract with both insurance and managed care companies. I spent hours filling out the lengthy applications for each company. I followed up with phone calls and sent in supportive documentation just trying to get on the companies’ panels as a provider.
Once I was approved to get referrals from the managed care companies, I had more paperwork to do and more phone calls to make. And, did I mention that the fee that I contracted for was significantly reduced from my usual and customary fee?
When counseling was not deemed medically necessary by the Utilization Review professionals, my reimbursement was abruptly cut off. My clients were unprepared to suddenly be financially responsible for my full fee. And, neither were they prepared to discontinue treatment with me.
As a therapist in private practice, you have many potentially practice-altering choices to make. Deciding whether or not to contract with managed care companies is one of them.
Make sure you take the time to consider the implications of working with managed care before you ever contract to do so.











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