Princeton Cuts Pay for Some Students’ Therapists and Psychiatrists

Editor's note: This story has been updated with additional details.

Due to financial pressures, Princeton is decreasing pay for the providers of some psychotherapy and psychiatry sessions beginning Aug. 1, in certain cases by nearly half or more, according to a mid-May email from the University’s Office of Finance and Treasury. The changes impact 228 people in Princeton’s Exclusive Provider Network (EPN) of “local and community mental health providers who … are contracted to accept the Student Health Plan,” according to the University Health Services website.

Of the 13 services offered by the EPN, chargeable rates decreased for all but two. The biggest reduction is a 71% cut for group medical psychotherapy, from $105 to $30 per session. For psychiatric diagnostic evaluations with no copay, the rate was cut from $334 per session to $173. The most common visits, according to the University, are follow-ups with a clinician, with rates decreasing from $180 to $167.

Princeton spokesperson Jennifer Morrill said a comprehensive evaluation of the Student Health Plan compared to “the local market and national benchmarks” led to the finding that EPN rates “were above prevailing benchmarks.” She added that the decreases in pay are also in response to University-wide budget cuts.

According to 2023 University data, that fiscal year the EPN saw about 69% of the students who sought outpatient mental health care — more than 1,100 claimants. Providers are paid by submitting claims to the University’s Student Health Plan for reimbursement. 

PAW spoke with six EPN practitioners, most of whom requested not to be identified for fear of retaliation. All six expressed frustration at the decision, and two were not sure if they would remain in the EPN.

Upon seeing the notice, one provider told PAW they thought the University was “finally going to pay us a little closer to the going rate around here [in Princeton], but that was the complete opposite of what we got.” Another assumed the new rates were “a mistake … because there wasn’t really an acknowledgement that they were doing something really awful.”

Morrill said in an email that as of June 17 — after this story went to press — “76% of current EPN clinicians have acknowledged that they will remain in the network” — including the 20 highest-volume providers — and about 6% indicated they will not return. “As a result, 92% of students whose current providers are part of the EPN will not see a change in their provider.”

One provider told PAW they will continue working with their current clients, because they feel it would be unfair to abandon them, but they decided “not take any future Princeton students.” Regarding the number of providers who will remain in the EPN, the person said, “The numbers can be deceiving.”

Around 120 EPN providers signed a letter, which was also sent to PAW, saying they were concerned that students’ access to in-network mental health care providers will be limited and could lead to an increase in intense treatment, such as emergency hospitalization.

Calvin Chin, director of Counseling and Psychological Services, responded to the providers that “off-campus clinicians play an essential and valued role,” but recognized the changes “may affect your ability or willingness to continue participating in the EPN or the number of students you are able to see.”

“We are confident that the changes to the fee structure will not compromise the quality or availability of care to our students,” said Morrill.

Tiffanie Cheng Wu ’24, founder of the Princeton Alumni Mental Health Coalition, said because Princeton “has consistently stated that student mental health is a priority,” she hopes the University will be transparent “about how these changes align with that commitment and what steps will be taken to ensure that access to care is not diminished.”