Ask Tamara – The Logistics Of Changing To A Different Practice Setting

Apr
11
2011

 

The End - Typewriter

Barbara H. Salkewicz is a Licensed Professional Counselor in private practice with Adults and Children Behavioral Health in Brick, New Jersey.  Earlier this month, Barbara wrote me to share her concerns about working in this insurance based practice and earning less money than she feels she is worth.  She says . . .

The problem I am facing is that I make very little money for a great deal of time invested having roughly 40 clients that I see regularly per week. It is emotionally exhausting and financially unrewarding.

I would like to strike out on my own but do not know the logistics of leaving a practice i.e. changing tax IDs with the insurance companies with which I am paneled, is it ethical to take my client base with me as it is me they want to see and not the practice they have a relationship with, how much notice should I give to find a replacement etc.

I know these are very entry level basic questions but this is something I have not dealt with before and want to handle things responsibly. Any help you can provide would be greatly appreciated. Thanks.”

Barbara, you are wise to be considering these things before you actually leave your current setting.  And, here’s what I’ve been told repeatedly . . . .

Federal Income Tax IDs

Your United States federal income tax ID, also known as your Employee Identification Number,  is a unique identifier assigned to you – not to your employer.  That means that it follows you wherever you go and never changes.

Taking Clients with You

The American Counseling Association’s Code of Ethics indicates that the relationship a client has is with you, the counselor, rather than your employer. That means that you can ethically take your clients with you.  However, if you signed a non-compete clause in your contract with Adults and Children Behavioral Health, you need to run this question by an attorney who specializes in contract law in New Jersey.  You may or may not legally be obligated to leave them behind.  (Check out How to Handle Non-Compete Clauses at Freelance Switch.)

Notice of Resignation

If you have signed a contract or entered into a verbal agreement that dictates a specific timetable or process for ending your current employment, you will need to speak with an attorney before you decide to do otherwise.  However, barring that situation, it is customary to give two weeks notice when submitting your letter of resignation.  Note that this is not necessarily required and extenuating circumstances might warrant a shorter notice.  In any case, you should be aware that your employer also has the right to let you go immediately rather than allow you to work for another two weeks.

Barbara, I hope you’ll let us know when you open your new practice and how we can support you along the way!  Thanks for dropping in to chat here at Private Practice from the Inside Out!

Related Post – You Can’t Just Shut the Door and Walk Away!

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You Can’t Just Shut The Door And Walk Away

Feb
11
2010

When you get ready to close your private practice, for whatever reason, you can’t just shut the door and walk away. Did you know that?  Attorney Richard S. Leslie has written a thoughtful article in the January 2010 issue of the Avoiding Liability Bulletin.  In it he details some of the following for your consideration when you decide to close up shop:

  • Ask yourself who needs to be notified – clients, former clients, insurance panels, landlords, supervisees, colleagues and business associates, referral sources, and your licensing boards;

    "You Couldn't Have Planned This if You Tried" by Ken Douglas / Today is a Good Day

  • Consider the possible circumstances that might result in you closing your door – retirement, geographical relocation, health emergencies, financial circumstances, your own death, your spouse’ or partner’s death,and other unforeseen circumstances;
  • Your state may dictate certain actions that you must take when you close your practice;
  • Your professional code of ethics and HIPPA will certainly have standards that you must adhere to when closing your practice;
  • How to notify existing clients;
  • Subsequent maintenance, storage, and access to records;
  • How to provide public notice of the closing;
  • When and how to notify former clients;
  • Why you may not want to terminate liability insurance policies when you close your practice;
  • And, in the event of your death or incapacity to handle these things, who does it for you?

Every mental health professional and every professional coach is required to responsibly close their private practice  – regardless of whether their closing is planned or unforeseen.  Whether you’ve been in business for years or you are just now getting started, now is the time to take the steps necessary to prepare for the eventual closure of your practice.

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