Palm Beach Editorial Services                                        
Mental health articles, page 2
Medicare fee cuts (continued) ...

"[Medicare] third party administrators have already sent the 2012 fee schedule reflecting those cuts to providers,” says Katherine Nordal, executive director of the Practice Directorate at the American Psychological Association (APA).  (That’s a 32.4% cut--the other 2% wouldn’t kick in until 2013.)

 “They want to give everybody a heads up.  But we're hoping they'll have to do the same thing as last year, which was to readjust and supplement the .  Our government relations staff thinks it will be resolved and the 5% cut will be avoided, too.”

Not everyone’s so confident.  “I’m less optimistic now than I’ve usually been,” says Laura Groshong, a lobbyist and director of government relations with the Clinical Social Work Association (CSWA).  “It’s hard to believe that a 34% cut would be allowed, and I’m hoping we can come up with a way to at least minimize it.  But at this point I have to be realistic and look at what actually could happen.  It’s a very discouraging time.”

 As the year ended, leaders were trying to come up with an agreement on the doc fix.  One proposal was for a two-month temporary pact that would prevent a Medicare  cut until March 1.

 A brighter spot in the Medicare picture for 2012 is the continued reduction in copays, which have traditionally been 50%.  But because of the parity law, a copay of 20% is being phased in.  It will be 40% in 2012, 35% in 2013 and 20% in 2014.

“I think that will make mental health services much more accessible for older people,” Nordal says.

 But Groshong believes any growth in Medicare mental health services “depends on how many providers are going to keep seeing Medicare patients.  Because if these cuts go into effect, you’re going to see a lot of people deciding not to take Medicare.”

 Contacts: 1) Laura Groshong, CSWA, Seattle, WA, (206)524-3690, lwgroshong@comcast.net; 2) Katherine Nordal, American Psychological Association, Washington, DC, (202)336-5913, email: knordal@apa.org.

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A closer look at non-compete clauses (continued) ...

Below, Karr and Ballard offer a checklist of steps to consider if you’re faced with disputes over non-compete contracts:

1. Try to negotiate. Ballard says: “I’ve heard of cases where the therapist had the clause changed so it only applied to cases of termination with cause. That offers you at least some protection...Or you can try to reduce the timeframe--from 24 months down to 12 or 6. Same with geography. If it’s a 10-mile radius, reduce it to five.”

2. Consider “buy-out” language. This is more common in medical practices where the money is more significant. But in a case where a therapist has the ability to take away a lucrative chunk of business, the former employer might be satisfied with a percentage of that money for 6-to-12 months after separation.

3. Remember the key word in non-competes is “reasonable.” And when it comes to things like geographic limitations--a five-mile restriction, for instance--what’s reasonable in a large city might be totally unreasonable in a smaller town.

4. In the end, be prepared to compromise because it’s probably too expensive for either party to go to court over something like this. “You could literally spend $50,000 if you had to push this up to a state supreme court,” Glennon Karr says.

Contacts: 1) David Ballard, APA, Washington, DC, (800)374-2723, email: dballard@apa.org; 2) Glennon Karr, Ohio Psych Consultants, Columbus, OH, (614)848-3100, www.karrlaw.com.

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