Beware Non-Negotiable “Hold Harmless Clauses”

APA members are finding that the “hold harmless clause” in Magellan’s provider contracts is a non-negotiable item, according to Karen Sanders, manager of the APA Managed Care Help Line. During the last year she has received calls from a substantial number of psychiatrists and two district branches (Iowa and North Carolina) about the issue. In more than one instance, the contract was in direct conflict with the psychiatrist’s malpractice coverage. More recently, calls have come in from APA members in Florida.

During the past year APA has pursued the matter and learned that Magellan considers the clause a non-negotiable item. APA has also learned that, for the most part, Magellan uses the same contract, including the “hold harmless clause,” across the United States.

Sanders understood that Magellan’s legal department was being made aware of APA member concerns. Because of the recent increase in calls, however, APA’s Office of Healthcare Systems and Financing will pursue the matter further.

If you have concerns about the hold harmless clause in any contract, please contact APA’s Managed Care Help Line at (800) 343-4671.