common business ethical issues in massage therapy

COMMON BUSINESS ETHICAL ISSUES IN MASSAGE THERAPY

Prepared by:MANNY P. DALEON

Trainer

Common Business Ethical IssuesCommon Business Ethical Issues1. Scope of Practice2. General Finances3. Fee Structure4. Barter5. Gift Certificates6. Tips7. Taxes8. Recordkeeping9. Independent Contractor Status10.Product Sales

8/3/2012 2Prepared by: Manny P. Daleon-Trainer

Common Business Ethical IssuesCommon Business Ethical Issues11.Referrals12.Marketing Materials13.Complying with Local, State & Federal Laws14.Slander & Libel15.Copyright16.Contracts17.Insurance Billing18.Dual Relationships19.Confidentiality20.Case Management


Suze Orman, author ofThe 9 Steps to Financial Freedom says--

“Before we can get control of our finances, we must get control of our attitudes about money, feelings that were shaped by our earliest experiences with it. Opening ourselves to abundance—not only of the pocketbook but also of the heart—is what’s necessary for true balance and freedom.”


Four MajorFour Major Fee-SettingFee-Setting StrategiesStrategies

1.High-end rate:2.Industry standard rate:3.Low-end rate:4.Time-limited introductory

rate:8/3/2012 5Prepared by: Manny P. Daleon-Trainer

Four MajorFour Major Fee-SettingFee-Setting StrategiesStrategiesHigh-end rate:

Set rate significantly higher than industry standard rate to target a small percentage of the population. This usually only works if your service is innovative, in demand and has no competition.

Industry standard rate:Determine the industry standard rate and align with it.

Low-end rate: Set rate significantly lower than the industry standard

rate to attract a larger market share. Time-limited introductory rate:

Offer introductory rates for a limited time or package deals reflecting.


Potential EthicalPotential Ethical Issues with TipsIssues with Tips1. Problems inherent with transference.2. Clients not certain when or how much to

give.3. Clients concerned that practitioner will

expect the same amount (or more) each time.

4. Clients worry that they won’t receive the same level of service if they don’t give a tip.


Work Smarter with BarterWork Smarter with BarterBarter is a cashless exchange of goods and

services. Barter income is taxable, like any other income.Approximately 3,000,000 companies in North

America belong to an organized barter exchange.Those businesses transact approximately $4

billion in sales annually.Barter affords you a simple, legal method to

conserve cash outlays. Bartering is also an excellent method for

expanding your client base.8/3/2012 8Prepared by: Manny P. Daleon-Trainer

BarteringBartering TipsTips1. Treat barter as cash. 2. Issue gift certificates or scrip to keep

track of trades. 3. Carefully evaluate barter prices.4. Realistically assess your barter

commitments.5. Set good boundaries. 6. Join a barter exchange.8/3/2012 9Prepared by: Manny P. Daleon-Trainer

GiftGift CertificateCertificate BenefitsBenefits1.1. ServeServe asas aa marketingmarketing tooltool toto generategenerate

newnew clients.clients.2.2. ProvideProvide aa surgesurge ofof incomeincome intointo youryour

practice.practice.3.3. OfferOffer anan easyeasy wayway forfor clientsclients toto shareshare

youryour services.services.4.4. FacilitateFacilitate goodwillgoodwill promotionpromotion whenwhen

givengiven asas presentspresents oror donateddonated toto charities.charities.


GiftGift CertificateCertificate ConcernsConcerns

Expiration DatesNon-redemptionIncrease in Value if not

Redeemed PromptlyAggressive Marketing


GiftGift CertificatesCertificatesIn the amount of:_________________________To: ____________________________________From:__________________________________

Blue Blue Lagoon Lagoon FloatingFloatingMassageMassage

Authorized Signature: __________________________Certificate Number:____________________________


Remember:• While gift certificate sales are

excellent tools for increasing revenue, keep in mind that the true profit is generated not from the sale of the certificate but from the subsequent sessions that the new client books.


GiftGift CertificateCertificate RegisterRegisterDate Sold

Amt Paid

Purchased by

Phone Number

Issued to

Phone Number

Services Products Amount Date Redeemed


Unethical Tax PracticesUnethical Tax PracticesConcealing Income–Cash Payments–Barter–Tips

Exaggerating ExpensesNot Collecting/Remitting Sales TaxNot Filing Appropriate Tax Forms


EthicalEthical ProductProductSalesSalesThe major focus is to enhance your clients’ health

and well-being.Keep in mind the effect of the Power Differential.Educate clients on the product’s benefits and

disadvantages.Be well-informed about any product you sell.Only sell products that you know are reliable.Only sell products that are suitable for use by your

clients.Only sell products that are a natural extension of

your business.Only sell products that are in your scope of practice.8/3/2012 16Prepared by: Manny P. Daleon-Trainer

Referral ConcernsReferral ConcernsThe gesture can be misconstrued.

Possible conflict of interest.

“Kickbacks” are often illegal.


UnethicalUnethical MarketingMarketing Exaggerated Claims

Misleading Ploys

Inappropriate Images

Ignoring Business Regulations

Misrepresenting Credentials


LegalLegal IssuesIssues Comply with local, state and federal laws. Maintain appropriate and adequate insurance coverage. Avoid slander (verbal) and libel (written) defamation. Respect copyright rules. Create written contracts. Avoid civil lawsuits. Don’t designate someone as an independent contractor if

s/he is really an employee. Before hiring a practitioner, set clear agreements about

the custody of client files if that practitioner leaves.


InsuranceInsurance CoverageCoverage Liability Insurance General Liability Insurance Small Business Insurance Malpractice Liability Insurance Product Liability Automobile Insurance Fire and Theft Insurance Business Interruption Insurance Personal Disability Insurance Medical Health Insurance Worker’s Compensation Insurance Partnership Insurance8/3/2012 20Prepared by: Manny P. Daleon-Trainer

HighHigh RiskRisk ClientsClients the sexually provocative client.

the professional plaintiff client.

the client with unrealistic expectations.

the client who idolizes the practitioner.


FormalFormal Client ComplaintsClient Complaints Notification to State Licensing Board Notification to Professional Organizations

Civil Lawsuit

Criminal Lawsuit


CivilCivilLawsuitLawsuit DiscoveryDiscovery ProcessProcessInterrogatories

Depositions

Request for Production of Documents

Request for Medical or Psychiatric Examinations


MalpracticeMalpractice ActionsActionsThe elements that a client must prove by a

preponderance of the evidence are:1. A duty of care owed by the practitioner to the

client. 2. A breach of that duty.3. A causal relationship between the breach.4. Damage to the client.Healthcare practitioners are “held to the standard

of care and skill of the average member of the profession.”


AvoidAvoid aa MalpracticeMalpractice LawsuitLawsuit Gather and complete an accurate medical history from

each new client. Obtain as much information as possible from the other

members of the client’s healthcare team. Have the client sign an Informed Consent sheet and

other HIPAA paperwork. Use common language when talking with clients. Be courteous and professional. Document every interaction (including phone calls)

with a client. If a problem occurs during a session, immediately

discuss it with the client (and family, if appropriate), and do not have the client pay for further sessions.


CopyrightCopyright GuidelinesGuidelines1. Copying works for client education violates

copyright law.2. If it looks copyrighted, assume it is.3. Copyright protects an author’s right to obtain

commercial benefit from valuable work.4. Copyright preserves the author’s right to control

how a work is used.5. Copyright law is mostly civil law.6. Obtain permission to use the work from the

copyright owner and always give proper credit.


Copyright Fair Use FactorsCopyright Fair Use Factors1. The purpose and character of the use. This

includes whether such use is of a commercial nature or non- profit educational purposes.

2. The nature of the copyrighted work.3. The amount and substantiality of the copied

portion in relation to the copyrighted work as a whole.

4. The effect of the use upon the potential market for, or value of, the copyrighted work.


ContractContract ChecklistChecklistNames and addresses of all parties involvedA short description and mission statementsSummarization of contracted party’s desired

roleA classification of the business relationshipA description of what each party is to provideA timetableLocation of where work is to be performed


ContractContract ChecklistChecklist (cont’d)(cont’d) The duration of the contract Payment method and schedule Fringe benefits Opportunities for increases in financial

increases Insurance coverage provided Insurance coverage required Guarantees Financial obligations of the contracted party


ContractContract ChecklistChecklist (cont’d)(cont’d)Conditions for termination of the agreement Guidelines for transfer of the contract Who retains custody of the client Arbitration Who is responsible for contract breach legal

fees Contract communication contact information Signature lines and date the contract is signed


DisputeDispute ResolutionResolutionThe Seven Steps:1) Adopt an attitude of resolution.2) Listen carefully to each party’s stories.3) Allow a preliminary vision to arise with all parties.4) Allow people to express their disappointment and then

bring everyone into the current moment.5) Agree (at least in principle) to create a new vision.6) Design the new agreement.7) Acknowledge resolution.Adapted from the work of Stewart Levine, Getting to

Resolution: Turning Conflict into Collaboration


NegotiatingNegotiatingTipsTipsLogistics Count Prepare Negotiating Styles and Personality Dynamics Use Active Listening Skills Walk Away for Awhile Set Time Limits for Complex Negotiations Pause and Reflect


IndependentIndependentContractorContractor StatusStatus II

Primary Characteristics of an Employer Employee Relationship:An employer has the right to discharge an employee. An employer supplies the employee with tools and a place to work.


IRS 20-PointIRS 20-Point ChecklistChecklistAn individual is likely to be considered an employee if he or she: 1. Is required to comply with company instructions about when,

where and how to work.2. Has been trained by the company to perform services in a

particular manner.3. Has her services integrated into the company’s operations

because the services are critical to the success of the business.

4. Must render services personally.5. Utilizes assistants provided by the company.6. Has an ongoing, continuing relationship with the company.7. Has set work hours established by the employer.8. Is required to work the equivalent of full time.9. Works on the company’s designated premises.


IRS 20-PointIRS 20-Point ChecklistChecklistAn individual is likely to be considered an employee if he or she: 10.Must perform services in the order or sequence determined by the

employer.11.Must submit regular progress reports.12.Is paid in regular intervals, such as by the hour, week or month.13.Is reimbursed for all business and travel expenses.14.Uses tools and materials furnished by the employer.15.Has no significant investment in the facilities that are used.16.Has no risk of loss.17.Works for only one person or company.18.Does not offer services to the general public.19.Can be discharged by the company.20.Can terminate the relationship without incurring liability..


REFERENCE:

• Sohnen-Moe Associates, Inc.• www.sohnen-moe.com


http://www.sohnen-moe.com/

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8/3/2012 Prepared by: Manny P. Daleon-Trainer 37

common business ethical issues in massage therapy

Education

majorfour

limited introductory

industry standard

end rate

contractcontract

point checklistchecklist

sell products

perform services