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RESULTS OF MANAGED CARE SURVEY

Summary of Results -
Conducted by Marin County CAMFT Clinical Members, 1997

Part I: Survey Highlights

I recently received the above referenced results of a survey of Marin County clinicians regarding their experiences as panelists or non-panelists for managed care companies. I hope you find it useful, relevant and thought-provoking as the discussion of pros and cons of managed care continues.

The questionnaire was designed to:

Gather and evaluate information about clinicians' experiences, attitudes and relationships with managed care organizations,

Compare clinicians' reports of encounters with specific managed care companies

Determine the overall impact of managed care on the psychotherapists polled.

The primary goal was to acquire and make available information that would empower clinicians to make educated choices for themselves regarding their involvement with managed care. Further, it would enable them to better serve their clients, protect their clients' rights and practice psychotherapy in a way that is ethically and financially viable.

Date survey was distributed to members: Spring 1996
Participants: 252 licensed CAMFT members in Marin County, CA
Response: 78 therapists - 31%. Half (39) are currently or have been providers on panels

Demographics:

Gender: Male (12.8%), Female (76.9%), no answer (10.3%)

Age: 30-40 (11.5%). 40-50 (28.2%). 50-60 (50%). 60+ (9%)
no ans. (1.3%)

No of Years Licensed: 1-5 (26.9%), 5-10 (11.5%),
10-15 (26.9%), 15+ (33.3%), no ans (1.3%)

Weekly Client Hours: 0-5 (7.7%), 6-10 (12.8%), 11-15 (25.6%), 16-20 (28.2%), 20+ (25.6%)

Summary:The most frequent respondent was female between the ages of 50 and 60, licensed over 15 years and averaging 16 to 20 client hours per week.

Panel Inclusion: () = No. of panels to which respondents belong:

39 - not panelists,
14 - (1) panel,
1 - (2) panels,
8 - (3) panels,
0-3 therapists - (4-26) panels.

Panel Referrals: Number of panels from which respondents had received a referral in the past year:

52 had 0 referrals,
9 had 1 referral,
6 had 2 referrals,
4 had 3 referrals,
1 had 10

Reasons for refusing referrals:

6.2% - caseload full with private practice clients
1.9% - panels were closed
5.7% - on panels, but received no referrals
14.1% - excessive paperwork required
12.8% - fees were too low
17.6% - wished not to be told how to practice therapy
4.0% - liability issues
14.1% - confidentiality issues
5.3% - other reasons
8.4% - no answer.

Satisfaction: one third of respondents were pleased to receive referrals from managed care, one third displeased and one third did not reply to the question.

Frequency of Reports: companies requesting a report every six sessions was the most common response. One third of respondents reported that they were required to submit a full treatment plan after one or two visits. Two-thirds of the respondents spent more time on paperwork for their managed care clients than they did for their private clients.

Income Results: 67.95% report no change in income as a result of working with managed care companies. 20.51% report that their income has decreased, and 11.54% report an increase.

Effects on Practice: Over 50% of the respondents have assumed part-time work to augment their private practice income. Thirty-two percent with supplemental jobs are working outside the field of mental health; 68% have found part-time employment within the mental health field.

Managed Care Panel

Part II: Responses From Therapists on Managed Care Panels
(Summary of Results Conducted by Marin County CAMFT Clinical Members, 1997)

Part I covered survey highlights including demographics, panel inclusion, satisfaction regarding referrals, income results, and overall effects on practices.
Part II summarizes replies by the 39 respondents who formerly had been or who currently are on managed care panels. Section A of Part II summarizes respondents' overall replies while Section B reviews clinicians' experience with specific managed care companies.

Data was derived from answers to a series of questions in which respondents were asked to write in the names of from one to four specific managed care companies with which they had worked and to base their replies on actual interactions with those companies. In all, 43 different managed care companies were named, some of which have since merged or gone out of business.

A. Overall Managed Care Experience

The figures were tallied as "% of responses" or "% of cases" rather than as Ò% of respondents' because respondents replied regarding experiences with one to four different companies. The actual number of responses or cases varied from question to question and these raw numbers have not been included.

1) Confidentiality

In over 60% of cases, respondents indicated concern about confidentiality.

In half of these cases, clients also expressed confidentiality concerns.

Therapists had clients decline or quit therapy in 24% of cases due to the added risk to privacy

In 33% of cases, therapists suspected that important information was withheld by clients fearing that it would leak to employers or others and thus make the client more vulnerable.

In more than 75% of cases, respondents had been challenged about presenting information on treatment reports that could increase the likelihood of securing coverage.

In 40% of cases, clients requested that therapists exaggerate symptoms so authorization for further treatment could be received.

2) Review Process

Therapists reported confusion regarding their prerogative to continue working with a client upon completion of the authorized sessions, as well as whether therapists can set their own fee with clients or must charge the same fee set by managed care companies. Of therapists working for the same managed care company, some reported that they can while others reported that they cannot continue to work with a client after completion of the authorized sessions. Respondents further reported:

In 32% of cases, reviewers were inadequate due to not being clinicians themselves, being unfamiliar with medications, being policy-driven versus case-sensitive.

In 31% of instances, treatment was denied or cut short because it was deemed "medically unnecessary" by managed care companies.

72% of responses indicated that the criteria for "medical necessity" has not been clearly defined by companies.

In 20% of cases, the criteria for "medical necessity" was not publicly available.

In 33% of cases, treatment was interrupted due to managed care companies' refusal to authorize more sessions. Of that 33%, in one third of the cases the therapist believed the clients' progress was damaged or undermined.

In 33% of cases, the therapist felt ethically obliged to continue treatment at low or no cost.

No therapist, fortunately, reported having been threatened with a suit for abandonment of a managed care client.

3) Reimbursement

In nearly half of the cases, therapists reported no problems with reimbursement.

In 16% of cases, therapists experienced denial of payment for sessions which occurred after authorization had expired or while waiting for reauthorization.

In 38% of cases, therapists reported delay in payment due to a communication breakdown with the managed care companies.

B. Review of Specific Managed Care Companies

The 39 therapists who were or have been on panels represented 43 different managed care companies. For comparison purposes, these companies were divided into two sets, 39 of which were represented by 3 or fewer therapists, and 4 companies of which were represented by 4 or more therapists. For purposes of this summary, 4 or more positive answers to the 6 questions asked on the subject of confidentiality was deemed "significant".

Set 1: Summary of 39 managed care companies represented by 3 or fewer therapists:

Companies for which providers expressed significant concern about confidentiality included Champus, Concern, Greenspring, Hillcrest, Medco, Merit, MBC, NRC, Perschoice and PSI.

Companies which prohibited the client from seeing the therapist privately after completion of covered sessions were MBC, Merit and Perschoice.

Companies requiring a treatment plan after 1 or 2 visits were Aetna. Claremont, Concern, Hillcrest, Interplan, Medco, Merit, MHN, Perschoice, PSI and Tricare.

17 of the 39 managed care company providers reported experiences with reviewers who were deemed inadequate.

78% of respondents stated that the criteria for Òmedical necessityÓ had not been clearly defined by Blue Cross, CCN, Concern, Champus, Helpnet, Hillcrest, Interplan, Lifelink, MBC, Medco, NRC and PSI.

12 of the 39 companies were reported to extend authorization for sessions.

12 companies were reported to have damaged or undermined clientsÕ progress because of refusal to authorize additional sessions. These companies were Aetna, Concern, Champus, FONH, Greenspring, Hillcrest, Interplan, MBC, Medco, Pacificare, PSI and Vista.

Therapists representing 11 companies reported having felt ethically bound to provide no or low cost care when coverage was denied.

16 companies delayed payment due to communication breakdown.

4 companies, Champus, Hillcrest, Medco and Merit, denied payment for visits which occurred after authorization had expired or while waiting for authorization.

Set 2: Comparison of 4 managed care companies represented by 4 or more respondents. Similarities and differences are highlighted among Blue Shield (11 providers responded), U.S. Behavioral Health (USBH - 7 providers responded), Occupational Health Services (OHS - 5 providers responded) and Value Behavioral Health (VBH - 4 providers responded):

a) Confidentiality

Confidentiality concerns for clinicians and clients: Blue Shield (4 of 11), USBH (5 of 7), OHS ( 4 of 5), and VBH (4 of 4).

Clinicians' experience with clients declining or leaving therapy because of concerns about confidentiality: Blue Cross (0 of 11), USBH (3 of 7), OHS (4 of 5), VBH (2 of 4).

b) Review Process

Complaints about inappropriateness or inadequacy of reviews were infrequent from providers for all four companies. However, in at least one instance for each company, a provider reported encountering one reviewer who was thought to be inappropriate and one reviewer who was deemed inadequate.

Treatment cut short because care was deemed "medically unnecessary", almost half of the providers responding from USBH, OHS and VBH reported experiencing this, while only 1 of 11 providers for Blue Shield experienced this.

The criteria for "medical necessity" not clearly defined: Blue Shield (6 of 6) who responded, USBH (5 of 6), OHS (4 of 5) and VBH (2 of 3).

The criteria for "medical necessity" being publicly available: Blue Shield (5 of 5), USBH (3 of 5), OHS (4 of 4), and VBH (2 of 3).

50% of providers for USBH and OHS reported therapy being interrupted when client's managed care company refused to authorize additional sessions, while only one provider from Blue Shield and one from VBH had had this experience.

Providers from all four companies felt ethically obliged to continue care at no or low cost when further coverage was denied by managed care companies.

c) Reimbursement

Denial of payment for visits which occurred after authorization had expired or while waiting for reauthorization: USBH (3 of 7 respondents), Blue Shield (1 of 5), OHS (1 of 4), VBH (1 of 3).

Delay in payment due to communication breakdown: Blue Shield (3 of 6), USBH (4 of 7), VBH (2 of 3), OHS (1 of 4).

Summary of Comparison of Four Companies

Providers for Blue Shield generally reported fewer concerns about confidentiality, fewer instances of treatment being cut short because care was deemed "medically unnecessary", fewer incidents of interruption of therapy when the company refused to authorize additional visits and fewer occasions of denial of payment after certification had expired. One VBH provider noted having had"good luck" with VBH and never having been refused requests for additional sessions.

A greater percentage of providers for USBH reported concerns about confidentiality, cases of treatment being cut short ("medically unnecessary"), incidents of interruption of therapy when the company refused to authorize additional visits, occasions of denial of payment for visits which occurred after authorization had expired and instances of delay in payment due to communication breakdown.

Receiving payment for services has been problematic for providers from all four companies surveyed. Also, providers for all four companies have had occasion to feel ethically bound to provide ongoing care at little or no cost when continuing coverage had been denied.

In conclusion, the survey indicated that while some therapists have benefited financially from working as managed care providers, more clinicians have suffered a drop in income. Also, while some providers report positive experiences with managed care companies and have not been plagued by concerns about breach of confidentiality, interruption of treatment or delay in reimbursement, this has not been the case for a large number of clinicians in this sample.

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