The New York Times on Sunday examined how mental health practitioners “are feeling an economic pinch, partly because of insurance reimbursement schedules that they say have not kept pace with their expenses.” The Times profiles several mental health professionals who maintain that fees negotiated by insurance carriers have forced them to increase their patient loads or look for other sources of income. In addition, social workers say they are facing reduced fees, late payments and “inappropriate assessment of the needs of patients,” the Times reports.
According to Paul Berman, the professional affairs officer for Maryland’s psychological association, many psychologists in private practice say reduced fees have forced them to nearly double their client loads and work many more hours to maintain their incomes. He said that when he went into private practice in 1990, his maximum allowable hourly billing rate as a participant in insurers’ provider networks was $95, compared with today’s rates of about $65 or $75.
According to Richard Frank, a health economist at Harvard University, efforts by insurance companies to reduce costs, as well as the increased use of drugs rather than psychological therapy to treat mental health ailments, have affected the incomes of mental health professionals. He said, “Clearly, the earnings of mental health professionals — medical doctors, psychologists, social workers and counselors — have either been flat or been declining for the past five to eight years.” Frank added, “It’s not so much the number of visits allowed by managed care to mental health professionals has changed. It’s that the fees paid to the mental health professionals have not been rising.”
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3 Comments to
“New York Times Examines Declining Fees For Mental Health Therapists”
the insurance companies certainly have left a scary mark on private practice. ive wondered how much further it can go before people simply stop going doing their practice.
Somehow, I missed this article. It
is now July 16.
I have been in full time private
practice for 35 years.I moved away
from providing psychotherapy 12 years
ago. I am now the largest provider
of anger management training,DVDs,
and training material in the nation.
It is time to broaden your focus if
you wish to survive.
http://www.andersonservices.com
I think many mental health therapist have lost their way. We knew going
into this field it was about our clients not our bank accounts. Those
who need our services most are often those who can pay the least.
I try to keep my fees at a level where everyone can afford assitance.
Shannon Munford
Daybreak Counseling Service
http://www.daybreakservices.com
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Last reviewed: By John M. Grohol, Psy.D. on 29 Mar 2006
