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Psychological Health Center Business Plan

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Amesbury Psychological Center

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Amesbury Psychological Center (the Center) is a multidisciplinary behavioral health care practice that offers mental health and substance abuse services to the communities of the Merrimack Valley. Our focus is to provide cost-effective, quality treatment. Our mission is to create, promote, and maintain a positive customer relationship with our clients, Anna Jaques Hospital (AJH), payors, associates and staff, and our community.

The market for behavioral health services is healthy, as will be shown by the growth the existing Center has experienced during the past two and a half years. Massachusetts has recently passed a mental health parity bill that will become effective in month one. The bill requires insurance companies to develop benefits for biologically based behavioral health disorders similar to those provided for health disorders. This should help sustain the anticipated projected growth. Currently, the Outpatient Psychiatric Center is referring approximately four phone calls a day to other providers.

The key to success for this turnkey project includes:

  • An ability to transfer existing hospital behavioral health contracts to the Center.
  • Credentialing clinicians in a timely manner.
  • Obtaining initial working capital.
  • Contracting with clinicians using reasonable rates.
  • Developing and implementing a successful billing and collection system.
  • Listening to all customers and attempting to meet their needs.
  • Obtaining a medicaid provider number.

The business plan provides a map for sustaining growth, improving revenue collections, and increasing our bottom line to produce a profit.

Psychological health center business plan, executive summary chart image

1.1 Objectives

Goal 1: To continuously develop, strengthen, and improve services offered by the Center.

  • Strengthen the current payor mix by developing and maintaining strategic alliances with five major behavioral health managed care companies.
  • Identify and develop strategic alliances with three community human service and addiction agencies.
  • Identify and foster strategic alliances and networks with eight community medical group practices.
  • Transfer and/or hire 80% of staff two months before starting date.
  • Identify and implement a billing system two months before starting date.
  • Improve the expected receipts rate by 40% over the previous year.
  • Increase all  services offered through the Center by 80% over the previous year.
  • Arrange working capital for the initial phase of the turnkey venture.

Goal 2: To strengthen the Center’s commitment to excellence.

  • Enhance customer service by offering three in-service trainings related to client satisfaction with treatment, accessibility, and staff-client interactions.
  • Continuously assess referral base satisfaction through the use of a referral base satisfaction survey.
  • Continuously assess client satisfaction from three perspectives: accessibility, environmental factors, and treatment-related factors.

1.2 Mission

To promote the well-being of the individuals and families in the Merrimack Valley community by providing accessible, quality mental health and substance abuse/addiction care for children, adolescents, adults, and their families, utilizing a service system that emphasizes trust, respect, confidentiality, and compassion. We are committed to quality mental health care that is provided in a collaborative effort with consumers’ overall health strategies and an array of medical services. We are further committed to the philosophy that we exist for the customer/client.

1.3 Keys to Success

  • Secure working capital by start of project.
  • Be profitable on a forward basis by the seventh month of the first fiscal year.
  • Be cash flow positive by the seventh month of operation.
  • Being affiliated with a well-respected community acute-care hospital.
  • Managed Care friendliness through cooperation, accessibility, and clinical focus.
  • Community awareness of services provided by the Center.
  • Ascertain a medicaid provider number and developing an interim plan to function during the application phase.
  • Staff commitment to excellence as evidenced by the Center’s growth and customer satisfaction.
  • Accessibility and responsiveness to the needs of the Center’s customers.
  • Functioning as an organization that is fluid, responsive, and willing to change in order to meet the frequent shifts of the behavioral health industry.

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The Amesbury Psychological Center is a for-profit behavioral health company located in Amesbury, Massachusetts. It was founded by the privatization of an existing mental health center that was a part of the Anna Jaques Hospital psychiatry program. The transfer of clients to the Center from the Outpatient Mental Health and Addiction Center was an effort to provide for uninterrupted, continued quality services to its present consumers, and expand its network of providers to ensure further growth. The transition to a privatized center enables the residents of the Merrimack Valley area to have continued access to a quality, accessible mental health center.

Although the Center is a new company, it is taking over the operation of an existing full-service mental health center. Prior to the privatization of the Outpatient Mental Health and Addictions Center, the Center was part of Anna Jaques Hospital’s Psychiatric Services Program. This program offered an array of behavioral health services which included both inpatient and outpatient services. Currently, there are approximately 565 active cases. There are another 233 inactive cases that use the Center’s services on an as-needed basis. The Center is located at the Amesbury Health Center, a facility owned by Anna Jaques Hospital. The Amesbury Health Center, formerly a city-owned community hospital, is a four-story brick building. It has been modified to accommodate a child inpatient unit and medical office spaces, including the mental health center.

The outpatient center began as a psychopharmacology center at Anna Jaques Hospital. During 1995, the psychopharmacology center moved to the Amesbury Health Center. At that time, the center expanded to include an Addictions Program.

In 1998, the Center further expanded to offer psychotherapy services. The psychotherapy component consisted of individual, couple, family therapies, and specialized groups. The composition of staff was multidisciplinary and included independently licensed/certified mental health centerians and certified addiction treatment specialists. During this time, the Center was licensed by the Department of Public Health to offer specialized addiction services that included a Second Offenders Program, an Addiction Counseling program, and an Intensive Outpatient Program. The licensing enables the Center to collaborate with other state and community agencies working with substance abuse/addiction populations, resulting in further growth for this program.

Since 1996 the number of visits/procedures has continued to grow to its present day tallies. The total number of visits for 1996 was 1,471, in 1997 it was 1,869, in 1998 it was 3,399, and in 1999 it was 6,158. The projected number of units of service for 2000 is 5,700. Although units of service have increased by 45% over the past two years, the net revenue has decreased per unit of service. As volume has increased, expenses per unit of service has fallen from $88 in 1996 to $52 in 1999. Since 1998, operating expenses have been under control and reasonably proportionate to units of service provided.

2.1 Company Ownership

The Center is a privately-owned sub-chapter S corporation formed to privatize, manage, and offer mental health and substance abuse services to the community of the Merrimack Valley. It is solely owned by its principal operator, John Nestor, Ph.D., M.P.A. It has been chartered and the name has been reserved with the Secretary of State’s office.

2.2 Company Locations and Facilities

The Center is located in Amesbury, Massachusetts, and has been in the same location since 1996. The location is excellent because the Center is easily accessible by automobile or public transportation, and has ample parking. The psychological center has its own entrance on the south side of the building, ensuring moderate privacy and confidentiality. The Center has been recently refurbished by the hospital and there is space available for growth. Leasing arrangements are yet to be negotiated, though $10-$12 dollars a square foot is the customary rate as quoted by local realtors. The Center will ask the hospital to subsidize rent for the first two years of operation, representing their support to ensure the success of this project.

The Center occupies approximately 2,200 square feet. It has nine clinical offices and group rooms. There is a larger reception area that is separated by a divider, allowing for a child and adult reception area. Included in the square footage is a small staff kitchen, a staff bathroom, and a business/intake office. The offices are handicapped accessible. There is a public unisex, handicapped-accessible bathroom within close proximity to the Center, and one within the building.

Leasing arrangements are in process. Based upon a financial analysis and financial projections, the hospital will need to subsidize rent for the first two years if the project is to succeed. It is our goal to obtain a three-year lease from the Anna Jaques Hospital with an option to renew a second three-year lease. The present location is not critical to the success of the business. After three years we will review our rental options, the need for additional space, and other available facilities in the geographical area prior to renewing the contract.

The Center provides an array of quality mental health and substance abuse/addiction services to individuals, couples, and families. The service population includes people of all age ranges. Specifically, services include psychopharmacology, psychotherapy, substance abuse programs, and contracted mental health services. A multidisciplinary staff provides quality treatment of mood disorders, anxiety disorders, attention deficit hyperactivity disorders, behavioral disorders, post traumatic stress disorders, stress management, substance abuse disorders, and gambling addiction disorders.

3.1 Service Description

There are four components of the Center that interact closely with each other, and also with the consumer’s primary care physician, when appropriate. The philosophy of treatment recognizes the totality of the individual in his or her life situation. This includes the interconnection of multiple dimensions from biomedical to spiritual, as well as external relationships of the individual to the family and larger social groups.

  • Psychopharmacology: This service is provided by licensed and board certified psychiatrists (MD/DO) and certified nurse specialists (RNCNS). Persons utilizing this service may or may not be in therapy, but need medication to stabilize the presenting symptoms and to facilitate a return to the person’s previous level of functioning. All age groups are treated. The average number of sessions is ten per year. Treatment is tailored to the needs of the individual and guided by an individualized treatment plan based on a comprehensive biopsychosocial assessment of the individual and their family, if appropriate. Rates are contracted.
  • Psychotherapy: This intervention is provided by independently licensed certified nurse specialists, psychologists, licensed mental health counselors, and licensed, independent social workers. The format of these services are individual, couple, family, and/or group sessions. All age groups are treated. The average number of sessions is eight per year. Treatment is tailored to the needs of the individual and is guided by an individualized treatment plan based on a comprehensive biopsychosocial assessment of the individual and his/her family, if appropriate. Rates are contracted.
  • Substance Abuse/Addiction: Substance Abuse and Addiction treatment centerians provide professionally-directed evaluation, treatment, and recovery services to persons with substance related disorders. Interventions are provided by licensed independent practitioners and/or certified alcohol and addiction counselors. These services are provided through individual and group modalities. The program consists of a four-week program that meets nine contact hours per week. Services are designed to treat the individual’s level of illness severity and to achieve significant changes in an individual’s addictive behavior. Treatment is tailored to the needs of the individual and guided by an individualized treatment plan based on a comprehensive biopsychosocial assessment of the individual and his/her family, if appropriate. Rates are contracted.
  • Contracted Services: Services provided to consumers within this category are generally provided off-site at another facility. The services are provided with associated staff and billed via the Center at contracted rates. Services include: consultation, psychotherapy, psychopharmacology, and addiction services.

3.2 Competitive Comparison

The Center provides quality, accessible service. The key to differentiation is to promote and evidence the mission of the Center to our customers in a meaningful and understandable manner. It is clear that we will not be able to compete doing “business as usual.” Our approach will be customer directed. Our customers will be able to discern our intangible, as well as our tangible, benefits. Our dedicated focus on all our customers will place us ahead of our competitors. When compared with its competitors, the Center stands out in several respects:

  • Environment. The Center is managed-care friendly; we provide prompt and accurate information as well as good communication. The Center has a shared treatment philosophy. Our services are accessible and cost effective.
  • Marketability. When marketing our services to managed-care companies and preferred provider organizations, we take into consideration their needs. For example: group vs. individual treatment, family vs. individual treatment, after-hours accessibility, access on weekends, use and tracking of outcome measures, and customer satisfaction.
  • Value-added Customer Contact. The Center provides free phone or face-to-face contact with therapists prior to treatment as a means of initiating a therapeutic relationship.
  • Location and Ease of Access to Facility. The Center is easily accessible by both automobile and public transportation. It has a private entrance which provides confidentiality. It is accessible to the physically challenged and there is ample free parking.
  • Promotion. Our customer-first philosophy will help attract new customers and maintain existing ones.
  • Self-Assessment. A major thrust of the Center is to continuously self-assess our mode of operating in order to evaluate how user friendly the Center is for clients, referral sources, payor, staff and associates, and others.
  • Integrated Delivery System. The Center has familiarity, understanding, and willingness to work closely with other health care providers. We are affiliated with an integrated health and behavioral health care system encompassing inpatient, partial, and outpatient services.

3.3 Sales Literature

At the time of this writing, our logo, brochure, business cards, and advertising are in the process of being developed. Our focus will be on selling the Center’s perceived qualities and intangibles.

3.4 Fulfillment

The key of fulfillment will be provided by the philosophy and principals of the business. The core values are customer focus, quality treatment, and professional expertise, as is evidenced by associates and staff performance, compassion, trust, and hard work.

3.5 Future Services

If the Center is to sustain its growth and other capacities, it must continuously strengthen its customer relations and identify their ongoing needs. We will watch closely for industry trends that may impact our delivery service system. Our energies will be focused on creative problem-solving solutions in how we deliver our service and how we reimburse our associates and staff for their hard work.

Market Analysis Summary how to do a market analysis for your business plan.">

In this age of health care reform and increased use of contracts with health maintenance organizations (HMOs), preferred provider organizations (PPOs), and other groups, the demand for behavior health care providers continues to decline. This phenomenon, being driven by behavioral health “carve outs,” has created a competitive clinical market, resulting in customer service being a critical factor. From this particular perspective, the customer identified as payor is: self-payor, medicare, medicaid, and managed care companies. They clearly drive the large percentage of referrals within the industry.

The Center has identified several behavioral health payors who have a strong foothold in the Merrimack Valley area. They include: Tufts HMO and Tufts Affiliated Health Programs, Harvard/Pilgrim Health Care, Medicare, Medicaid/MBHP, Magellan/MBC, Magellan Lucent, United Behavioral Health, Behavior Health Network, managed care company (MCC)/Cigna, US Health Care, and Health Care Value Management (indemnity products). Consumers participating in these programs are drawn from the communities of the Merrimack Valley and Southern New Hampshire area. Within this service area it is estimated that HMOs provide insurance for approximately 51% of the population.

It should be noted that there is an abundant supply of behavioral health providers/institutions within the Merrimack Valley and Southern New Hampshire. They include: psychiatric hospitals, residential facilities, outpatient group practices that vary from public to private organizations, and solo practitioners. Customer service, then becomes an even more critical factor. To obtain and maintain a foothold in the behavioral health market will necessitate the provision of optimal, accessible, quality customer service.

The Center has four primary customers, each with their own specific needs. These include:

4.1 Target Market Segment Strategy

If the Center is going to survive and grow, we must market our services aggressively. As previously noted, our referral base is primarily driven by managed care companies, medicare and medicaid, indemnity products and self-payors. Within the Merrimack Valley geographical area, HMOs have approximately 51% of the covered lives. Focusing on and identifying the needs of these five referral sources is critical for our growth.

4.1.1 Market Trends

Trends which began with health care reengineering and the introduction of managed health care will continue during the next decade. There will continue to be change within this industry, but change will be less dramatic than the health care revolution of the 1980s and 1990s. Managed care companies will continue to influence fee structures and restructure the provider network.

With the advent of mental health parity in Massachusetts, utilization rates and reimbursement rates should improve. Under the mental health parity law, insurance companies are not allowed to cap mental health services for biologically based mental health disorders. Co-payments cannot escalate during the course of treatment for these disorders.

Managed care organizations (MCOs) are beginning to review provider compensation packages with the intent of increasing  compensation rates. Rates have been flat for the past ten years.

4.1.2 Market Growth

As noted in a previous section, the growth rate for the Center during the past three years has been significant. There is no identified reason indicating that this will change. We are currently referring out four to five phone calls per day. Within the geographical area, it takes approximately six to eight weeks to get an appointment with a psychiatrist. For psychotherapy, it takes approximately seven to eight days to get an appointment. With the use of additional staff and creative scheduling, some of these challenges can positively impact the bottom line.

Dr. Marc Shay, an adult psychiatrist, has recently become an associate of the Center. He has committed to 12 hours per week, resulting in an increase of services by 48 units per week. His schedule is filled for the next three weeks as of July 10, 2000. He will begin work on July 17, 2000. We are also in the process of negotiating with a clinical nurse specialist to work 12 hours per week. Her specialty is with children and adolescents. Her starting date is estimated to be early September 2000.

4.1.3 Market Needs

Previously, we have identified the significant aspects of services offered by the Center. Of these services, children and adolescent services are in greatest demand by all referral sources. This gives strength to the four segments of our delivery service system which address these needs. Additionally, there is significant population growth in the Merrimack Valley and southern New Hampshire areas, and this growth is projected to continue over the next decade.

4.2 Service Business Analysis

The behavioral health care industry consists of inpatient programs, residential and partial programs, outpatient group practices, and outpatient solo practices. For the purposes of this business plan, we will focus on multidisciplinary group practices, both public and private. Within the geographical area designated as the service area for this business plan, the industry participants include: North Essex Mental Health Center, Arbour/HRI Counseling Services, Harris Street Associates, and Harborside Psychological Center.

4.2.1 Main Competitors

To identify the principal behavioral health competitors within the Merrimack Valley, it is important to have an understanding of the behavioral health industry as it has been transformed by the influence of health care restructuring. There are primarily four types of behavioral health facilities: (1) psychiatric hospitals, (2) residential facilities, (3) outpatient group practices, and (4) solo practices. The primary competitors of the Center fall within the third category, outpatient group practices. These practices can be further categorized as public, not-for-profit facilities, and for-profit private practice facilities that include homogeneous group practices and multidisciplinary group practices.

Not-for-Profit Facility

1. North Essex Mental Health Center

North Essex Mental Health Center, Inc., Newburyport, Massachusetts with a satellite office in Haverhill, Massachusetts. Three years ago, this facility was bought by a subsidiary of Northeast Health Systems of Beverly, Massachusetts. This facility is a community mental health center whose primary consumer is the medicaid population. The center has been providing behavioral health services in the Merrimack Valley area for over 20 years. This center has grown significantly in the last 10 years, culminating in the opening of an Amesbury office. North Essex Mental Health Center is the dominant provider in the Northeast area of Massachusetts. They are the emergency services provider for MBHP and have contracted with the AJH to provide emergency services to their emergency room. Their payor mix is composed of medicare, medicaid, self pay, and some MCOs.

a. Strengths:

  • Bureaucratic flexibility
  • Affiliations programming
  • Availability of home-based and school-based services

b. Weaknesses:

  • Size (considered to be arrogant by some area professionals resulting in a negative perception in the community)  
  • High staff turnover

c. Potential Impact of Strengths:

  • Politically well connected
  • Large pool of resources to draw from
  • Staff availability to respond to request for proposals (RFPs) and request for quotations (RFQs)

d. Strategies To Thwart Competition:

  • Develop reputation for providing quality services
  • Respond to the needs of referral sources
  • Respond and demonstrate respect to consumer
  • Develop niche markets
  • Continuum of services available from inpatient, to partial, to intensive outpatient services
  • Availability of child/adolescent psychopharmacologist
  • Increase visibility of, and procedures offered by, the Center
  • Strong referral base from physicians practicing within the AJH health care system

2. Arbour/HRI Counseling

HRI/Arbour Psychological Center is a moderate-size, for-profit mental health center. It is a full-service multidisciplinary center, offering mental health services to children, adolescents, and adults. It was recently procured by Arbour Mental Health Systems. This center has recently invested money to refurbish a facility that houses their geropsychiatry program. Their payor mix is spread among Medicare, Medicaid, self pay, and MCOs

  • Good location in downtown Haverhill
  • Affiliations
  • Programming: geropsychiatry partial hospitalization program
  • Community respectability
  • Unknown at this time
  • Part of a large system
  • Strong referral base
  • Programming/outreach home-based legal services

d. Strategies to Thwart Competition:

  • Develop reputation for providing quality services 
  • Continue services available, from inpatient, to partial, to intensive outpatient services
  • Increase visibility of, and procedures offered by, the Center

3. Harris Street Associates

Harris Street Associates is a multidisciplinary group practice providing mental health services to the Newburyport and Haverhill communities. It was established over fifteen years ago by several local psychiatrists and psychologists. Their payor mix has been primarily with MCOs, with some indemnity programs. It has had a rocky financial history, culminating in being bought by H.E.S. For the past three years, H.E.S. has attempted to turn around the financial status of the agency without success. It was recently announced that the center is closing on October 30, 2000.

4. Harborside Psychological Center

Harborside Psychological Center is located in Newburyport, Massachusetts. It is a multidisciplinary mental health group practice. Until recently, their service focus has been psychotherapy with children, adolescents and adults. Currently, this center has added pharmacology to their list of services. Their payor mix is composed of MCOs and employee assistance programs (EAPs).

  • Location quite good in downtown Newburyport
  • Multidisciplinary composition of the Center
  • Not close to public transportation
  • Not visibly known to the public
  • Psychopharmacology time is limited
  • Strong referral base with MCOs
  • Develop niche markets, especially with children and adolescents

4.3 Market Segmentation

The market segmentation can best be understood from an analysis of the clinical services being offered by the Center. Presently, three services are offered: psychotherapy, pharmacology, and substance abuse/addiction treatment. When the Center commences its operations, a fourth service will be implemented: behavioral health contracts. Contracts are different from the previous three segments in that the services are provided offsite at another facility.

All services are offered to all age groups, with a modality of treatments that include individual, couple, families, and group. Some customers will use only one service at a time, while others will use a mix of the various services simultaneously.

Psychological health center business plan, market analysis summary chart image

Strategy and Implementation Summary

The Center will focus its market activities on two market areas: the communities of Merrimack Valley, and Southern Hew Hampshire. Services will include psychotherapy, psychopharmacology, and substance abuse/addiction services.

The target customers are the consumers of mental health services (i.e. individuals, couples, families, and groups). The composition breakdown is approximately 50% adults and 50% children, adolescents, and families. The second target customer are the payors. They are an integral piece of this turn key project. The payors are basically the gatekeepers for referrals and authorizations.

5.1 Sales Strategy

The Center’s sales strategy will target potential purchasers and referral sources of our services, from:

  • Managed Care Companies (5-6)
  • Preferred Provider Organizations (2-3)
  • Medical Groups (5)
  • Community Agencies (3)
  • Consumers/Clients

Wherever possible, our niche marketing approach will be linked to our sales strategies.

5.1.1 Sales Forecast

The following chart and table depict the Center’s forecasted sales. During the first year, we expect a yearly growth rate of approximately 100%  from the previous fiscal year. Since existing associates will remain with the Center, and several associates from a closed center will join us and bring at least sixty percent of their current caseload with them, the forecast is reasonable. The Center is in the process of negotiating with Harbor Schools to provide mental health services, resulting in 3,300 additional units of service. The sales forecast is also based on the assumptions that we meet projected staffing patterns, managed care contracts are transitioned to the Center without difficulty, and a Medicaid provider number is obtained without complications.

Operationally, the Center is prepared to handle growth. Support staff is in place, as are other necessary environmental resources. The immediate problem would be to transfer patients from one center to another. Through a planned transition program being driven by the therapists, it should occur without too much difficulty or confusion.

The chart and table depict a modest 18% growth rate for the second year, and a 23% growth rate for the third year. The second year growth rate will be the result of adding additional therapy hours. The third year growth will be a result of adding therapy contracts. We are in the process of negotiating with Harbor Schools to provide on sight therapy services.

Psychological health center business plan, strategy and implementation summary chart image

5.2 Value Proposition

If the Center is going to compete effectively, it will need to clearly define its value-added benefits. Our goal is to meet and exceed the needs of our customers: consumers, staff and associates, payors, consultants, and other referral sources. Previously, we discussed the needs of our customer. These needs will drive the value-added philosophy and marketing strategy.

5.3 Competitive Edge

Our competitive edge is our associates and staff affiliations. Our associates and staff spread the company proposition, “our mission is to meet/exceed customer’s expectations.” Our affiliations with the Anna Jaques Hospital and other medical group practices allows us to interface easily with a strong referral base. Hard work, integrity, accessibility, experience, quality service, and customer satisfaction are the factors influencing our competitive edge. When the customers call the Center, they will get a real person, not a voice mail message.

5.4 Marketing Strategy

Target marketing of our services is critical to growth. Strategies will include:

  • An emphasis on customer-driven, quality service
  • Building a relationship business
  • Focusing on five behavioral health payors
  • Identify and build a niche market

Marketing tools will include: direct mail, print and audio advertising, public speaking, and relationship building with identified managed care corporations and persons.

5.4.1 Promotion Strategy

Multiple strategies will be used to promote the Center. Throughout the promotional strategy, our focus will be on selling the Center. The types of promotions will include:

  • Participation in activities related to treated disorders at the center, e.g., National Depression Screening Day.
  • Developing a  brochure, logo, and business cards to promote the Center.
  • Networking with various health care providers, community agencies, and state agencies.
  • Media advertisement, especially to announce the professional affiliation of a new associate or new program.
  • Use of follow-up letters to referral sources.
  • Offering informational workshops to the public.
  • Networking with the media to facilitate articles about the Center.
  • Join small business groups/organizations as a means of increasing public awareness.

5.4.2 Positioning Statement

It is our goal to enhance our image and reputation by being responsive, accessible, and by providing quality treatment. By building relationships, we will cultivate our image with case managers and network managers of identified managed care organizations.

5.4.3 Pricing Strategy

Pricing for the services provided by the Center is market driven. Our fee structure is based upon a survey of existing MCOs and other payors. In order to operate profitably under these prices, it is imperative that the Center monitor and control costs. Behavioral health industry watchers believe that there is at least a 15% range of variation in what certain managed care companies will pay different providers for a given service. Our goal is to obtain the highest price within the competitive range by convincing the payor that we have a service to offer which exceeds that of our competitor. A possible example of this is creative bundling.

5.5 Strategic Alliances

Strategic alliances are critical to the goals of the Center, and include selling more services and strengthening our relationship with all our customers. If we are to meet our strategic goals, we must have a strong, continued alliance with Anna Jaques Hospital. Concurrently, we must strengthen and develop our relationship with our referral networks, especially medical groups within the Anna Jaques System and the surrounding community.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The Center’s organizational structure is based upon a shared services model. The founding president/director of the Center has an accumulated twenty years of administrative, management, and clinical experience in the human service and behavioral health industry. The management philosophy is based upon open-book management, shared responsibility, and mutual respect.

6.1 Organizational Structure

The founding president/director will manage the company. Since the company is organized as a shared service model, relationships will be a key variable in setting the direction of the Center. There will be an advisory board composed of four leaders in the field of behavioral health, managed care, organizational dynamics, and a consumer.

An advisory management group, consisting of the Center’s staff, will meet on a regular basis to review the Center’s financial structure, identify customer relations issues, and develop future goals for growth, marketing, and sales. This group will be assigned the task of developing a plan to implement and integrate a Continuous Quality Improvement (CQI) component and culture into a private practice Shared Service Model (SSM). A customer relations committee will be formed to brainstorm, formulate ideas, plan and implement activities to enhance levels of satisfaction among all customers. The organizational chart follows:

6.2 Management Team

The proposed personnel team includes the individuals listed below. It will involve one to three consultants, a five member advisory board composed of professionals, and a consumer and CQI team composed of associates and staff. Dr. John Nestor will be the president and director. He has an extensive employment history in program start-up, budgeting, and program development. The advisory board includes:

**Names have been removed for confidentiality

6.3 Management Team Gaps

At present, we are in the process of identifying a financial services company and consultants for several other areas.

6.4 Personnel Plan

The personnel plan reflects the needs of a shared service model for a multidisciplinary behavioral health center. It should be noted that benefits are provided to those personnel designated as salaried or hourly employees who work more than 30 hours per week. Associates will be paid a predetermined percentage of their collectible fees. Employees will be paid every two weeks. Associates will be able to draw the first paycheck and reconcile the second paycheck each month.

Human resources, legal, fiscal billing, and marketing/sales will be out sourced. We are in the process of identifying a human resource company and a billing/collection company. The billing company will be paid a percent of fees collected with a goal of collecting at least 93% of that billed. Thought will be given to other risk variables to be included in the contract. The costs for the Human Resource services are not determined as of this writing.

The president/director’s compensation will be a combined package that includes 75% administrative salary and 25% from clinical work.

Financial Plan investor-ready personnel plan .">

The financial plan for this turn key project is presented in detail in the following sections. There are three important factors in the financial plan:

  • Reducing the days in receivables and improving the quality of receivables,
  • Improving cash flow, and 
  • Significant growth the first year and modest growth the second and third year.

7.1 Important Assumptions

There are several assumptions related to this turn key project.

  • The economy continues at its present rate, without major recession.
  • Expected receipts will improve dramatically by out sourcing billing and collections.
  • The current climate for these services will continue.
  • Behavioral health contracts will be transferred to the Center without difficulty.
  • Center clinical associates will be credentialed in a timely manner, or the Center will be able to credential by “job description.”
  • Our staffing patterns and facilities will be able to handle the projected growth.
  • The average days of receivable will be 67 or less.
  • Unlike inpatient behavioral health services, managed care manages the services but has not attempted to cap them. It is assumed that this trend will continue. There are also signs that managed care companies are moving away from micromanaging these services.
  • A mutually-agreed upon plan will be devised to prepare for the transition of medicaid clients to the Center.

The following table summarizes the general financial assumptions.

7.2 Key Financial Indicators

The following benchmark chart indicates our key financial indicators for the first three years of operation. We see significant growth during fiscal year 2001, as compared to the previous fiscal  year. Units of service are projected to increase by approximately 75%. The growth during fiscal year 2001 is reasonable in that the existing pharmacology will continue with the pharmacology and three pharmacology/therapists will transfer to the pharmacology with their clients from a center that is closing in the community. A recent medical graduate psychiatrist will join our Center as of July 2000. We will recruit one to two pharmacology nurse specialists during the fiscal year 2001. The Center will double in size during its first fiscal year, as compared to its previous level of operation. During the second fiscal year the growth rate will be approximately 18%. During the third year of operation it will grow at a rate of 23%. This growth will be a result of securing contracts with local human service agencies. Although the rate of expected receipts remains the same during the next two years, it is expected to improve during the third year with new contracts, and experience and familiarity with the new billing system. A financial goal is to be debt-free by the end of the fourth year of operation.

Similiarly, collection days remains the same during the next three years. However, efforts will be made to improve this variable with the use of electronic billing.

As sales of services increase, operating costs will rise as well. Every effort will be made to contain these costs proportionately. There are no actual or projected significant increases evident. The variable costs will increase during the third year as we need to hire new staff for the projected contracts. The hiring will not be concluded until the contracts are signed so as to avoid any unnecessary spending.

Psychological health center business plan, financial plan chart image

7.3 Break-even Analysis

The following chart and table summarize the Center’s Break-even Analysis. These figures and assumptions are fairly well represented since they are based upon actual historical data. Cost control and production improvement will ensure profitability.

Psychological health center business plan, financial plan chart image

7.4 Projected Profit and Loss

The following table shows the projected profit and loss statement. Projected sales increased from approximately $530,000 the first year of operation to more than $637,000 the second year and more than $842,000 the third year. The third year growth is a result of additional units of service gained through a contract with a local residential program.

Psychological health center business plan, financial plan chart image

7.5 Projected Cash Flow

The following chart and table summarize the Center’s cash flow. The projections are a combination of short-term borrowing and Center receipts. Cash flow is obviously critical to the Center’s success. The monthly cash flow, as shown in the table, generally improves from month to month. The chart and table reveal a positive cash flow as operations move beyond the seventh month and steadily continues thereafter. 

Psychological health center business plan, financial plan chart image

7.6 Projected Balance Sheet

The following table shows the projected balance sheet. The monthly estimates are included in the appendix.

7.7 Business Ratios

The following table shows the projected business ratios as determined by the Standard Industry Classification (SIC) Index code 8063 for the mental health center industry.

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3+ Mental Health Business Plan Examples in PDF

3 Mental Health Business Plan Examples in PDF

Recently, the important role of mental health has been widely acknowledged by many countries and communities around the world. Despite the progress, people with mental health conditions remain victims of human rights violations, discrimination, and stigma. With extremely low treatment coverage, the gap between people needing care and those with access to care remains substantial. This is why mental health businesses, in the form of mental health hospitals and counseling centers, among others, are booming to allow more and more individuals to get access to the care they need. Likewise, your goal in setting up a mental health business is to significantly increase the number of people with psychological conditions gaining access to the support they need in managing mental health issues. However, like many other businesses , you need a roadmap to better guide you in structuring, running, and growing your mental health business.

Generally, creating a business plan takes a complicated process. There are a lot of aspects you need to look into in order to make your business a success. This is why it’s quite hard to choose where to start in creating your business plan. But fret not because we give you more than three business plan ideas through our examples and templates below.

3+ Mental Health Business Plan Examples

1. mental health business plan template.

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2. Business Plan for Mental Health

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3. Mental Health Small Business Plan

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4. Standard Mental Health Business Plan

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What Is a Mental Health Business Plan

So your vision is to help people with mental health conditions get access to the services they need at an extensive rate. Now to make your vision possible, your first mission is to create a business plan. A business plan will guide you through each stage of your mental health business; from starting to managing. Through this, you can think through the key elements of your business — funding agreement , budget , investors, and more.

How to Write a Mental Health Business Plan

You need to have a written business plan for your behavioral health practice. With it, the likelihood of achieving a successful mental health business becomes relatively higher. But, how do you write it? Before we get started with the process, please remember that a business plan should include the executive summary, company description, market analysis, organization and management chart, marketing and sales, funding request, and financial projections. Also, don’t forget to include services and/or products. You might want to consider providing learning resources that can help patients diagnosed with mental health problems themselves or the people who want to help them.

Without further ado, let’s get started!

Tip 1: Conduct Thorough Research

Know more about the different aspects of mental health and be sure it lines up with your goals and objects. Research and analyze the services or products that you plan to provide — understand how they can help people who are suffering from mental health issues.

A little suggestion, try to research the various interventions made by other mental health providers; analyze their effectiveness and which areas do they fail. This will help you make innovative psychotherapeutic interventions that can potentially address treatment gaps in the past. In other words, know your company, what you provide, your competition, and the market intimately.

Tip 2: Determine Your Purpose

A business plan is a written document describing the nature of your business, the sales and marketing strategy, financial background, and the profit and loss statement . As such, you should have a clear purpose as to why you are establishing a mental health business. This is why research is imperative in your business plan.

Serving as a roadmap that provides direction for your business, it’s important to keep in mind if you’re self-funding or building your company from nothing else but personal savings or cash from the first profit — in your case, you may have a long way to go. So, determine if you’re planning to attract investors or not. If you do, write your plan in a way that targets them.

Tip 3: Have Your Strategic Marketing Plan Ironed Out

Map your marketing strategy  to give you a clear guide in effectively reaching your target market. Be creative in thinking about how you introduce your services. For this, your marketing strategy might include venturing into digital marketing. There is a number of mental health providers who were able to expand their reach with the help of a digital marketing agency.

But, of course, be sure to personalize your business plan. This will aid you in creating a concrete marketing strategy.

Tip 4: Include the Clinical Aspect of Your Business

Make your business plan tailored to your behavioral health practice. For this, think about the clinical aspect of your business. Take the following into consideration: – The clients’ demographics, age group, and conditions – Clinic location (rent or buy a space or at home) – The therapeutic approaches you will take – Prospective behavioral healthcare provider partners – Telehealth – Counseling Treatment Plan

These are just a few of the considerations you need to look into with the overall operation. If you have anything else in mind, include them in your business plan. It might help.

What Are the Main Purposes of a Business Plan?

There are three main purposes of a business plan, which include (1) creating an effective business growth strategy, (2) determining the company’s future financial needs, and (3) attracting investors.

Is a Business Plan the Same as Marketing Plan?

No. A business plan covers the business as a whole, including the overall strategy, financial plans, target markets, sales, services and/or products, operations, and their relation to each other. On the other hand, a marketing plan focuses on the marketing strategy (target market, messaging, platform, etc.).

How Does a Business Plan and Marketing Plan Relate with Each Other?

Your marketing plan provides how your company will achieve or exceed its purpose and mission. The purpose and mission should be identified in the business plan.

You can neither go right nor wrong in writing a business plan. What matters is that your plan is able to achieve, if not exceed, your needs and expectations. If you’re puzzled about how to begin with your business plan, feel free to browse for more of our business plan examples and templates, such as: – Daycare Business Plan – New Business Plan – Small Business Plan – Cafe Business Plan – Bakery Business Plan

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Business Plan Template for Behavioral Health

Business Plan Template for Behavioral Health

Starting a behavioral health clinic or facility is an exciting and challenging endeavor. To turn your vision into a successful reality, you need a comprehensive business plan that outlines your goals, strategies, financial projections, and marketing plans. ClickUp's Business Plan Template for Behavioral Health is here to help you bring it all together!

With this template, you'll be able to:

  • Clearly define your clinic's mission, vision, and target market
  • Develop a solid financial plan and projections to attract investors and secure funding
  • Create a strategic marketing plan to reach and engage your target audience
  • Outline your clinic's services, organizational structure, and operational processes

Don't let the complexity of starting a behavioral health clinic hold you back. Use ClickUp's Business Plan Template to streamline the process and set your venture up for success. Get started today and make your dream a reality!

Business Plan Template for Behavioral Health Benefits

Creating a business plan for a behavioral health clinic or facility is crucial for attracting investors and securing funding. With the Business Plan Template for Behavioral Health, you can:

  • Clearly define your clinic's mission, vision, and goals, showcasing your commitment to providing quality behavioral health services
  • Develop a strategic roadmap, outlining your marketing strategies, target market, and competitive analysis to position your clinic for success
  • Create accurate financial projections, including revenue forecasts, expenses, and profit margins, to demonstrate the profitability and sustainability of your clinic
  • Present a comprehensive plan to potential investors, showcasing your expertise and your ability to effectively manage and grow a behavioral health business.

Main Elements of Behavioral Health Business Plan Template

ClickUp’s Business Plan Template for Behavioral Health provides a comprehensive framework to help entrepreneurs and healthcare professionals kickstart their behavioral health clinic or facility with a solid plan in place. Here are the main elements of this template:

  • Custom Statuses: Keep track of progress and tasks with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that all aspects of your business plan are properly addressed.
  • Custom Fields: Utilize custom fields like Reference, Approved, and Section to add important details and track the status of each section of your business plan, making it easier to stay organized and collaborate with team members.
  • Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to gain a holistic perspective of your business plan, track progress, and navigate through different sections seamlessly.

How To Use Business Plan Template for Behavioral Health

If you're looking to create a comprehensive business plan for a behavioral health service, follow these six steps using ClickUp's Business Plan Template:

1. Define your mission and vision

Start by clearly defining the mission and vision of your behavioral health service. What is your purpose? What do you want to achieve? This will guide all other aspects of your business plan.

Use a Doc in ClickUp to articulate your mission and vision statement in a clear and concise manner.

2. Identify your target market

Determine the specific population or demographic that your behavioral health service will cater to. Who are your ideal clients? Understanding your target market will help you tailor your services and marketing strategies.

Use custom fields in ClickUp to categorize and track important information about your target market, such as age range, specific conditions, or treatment preferences.

3. Analyze the competition

Research and analyze your competitors in the behavioral health industry. What services do they offer? What sets your business apart? Understanding the competitive landscape will help you identify opportunities and develop a unique value proposition.

Use the Table view in ClickUp to create a comparison chart of your competitors, including their services, pricing, and target audience.

4. Develop your services and programs

Based on your target market and competition analysis, outline the specific services and programs that your behavioral health service will offer. Consider the range of therapies, treatment modalities, and additional support services that you will provide.

Use tasks in ClickUp to create a detailed list of services and programs, assigning team members responsible for their development and implementation.

5. Create a financial plan

Develop a financial plan that includes your projected revenue, expenses, and profitability. Consider factors such as staffing costs, facility expenses, marketing and advertising, and any other operational costs.

Use Dashboards in ClickUp to visualize and track your financial projections, making adjustments as needed.

6. Implement and monitor your plan

Once your business plan is complete, it's time to put it into action. Assign tasks and responsibilities to team members, set deadlines, and track progress towards your goals.

Use Automations in ClickUp to streamline workflows and ensure that tasks are completed on time. Regularly review and update your plan as needed to adapt to changes in the behavioral health landscape.

By following these six steps, you'll have a comprehensive business plan that will guide the success of your behavioral health service. With ClickUp's Business Plan Template, you can easily create, collaborate, and track your progress every step of the way.

Get Started with ClickUp’s Business Plan Template for Behavioral Health

Entrepreneurs or healthcare professionals starting a behavioral health clinic or facility can use the ClickUp Business Plan Template for Behavioral Health to create a comprehensive and professional business plan that will attract investors and secure funding for their venture.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create your business plan:

  • Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, and Marketing Strategy.
  • The Status View will help you keep track of the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
  • The Timeline View will allow you to set deadlines for each section and visualize the overall timeline of your business plan.
  • The Business Plan View will give you a comprehensive overview of your entire business plan, with all sections and details in one place.
  • The Getting Started Guide View will provide you with a step-by-step guide on how to use the template and create your business plan.
  • Utilize the custom fields such as Reference, Approved, and Section to add additional information and track important details.
  • Collaborate with your team members to gather input, share ideas, and ensure that your business plan is comprehensive and well-rounded.

By using the ClickUp Business Plan Template for Behavioral Health, you can streamline the process of creating a professional and effective business plan that will help you secure funding and successfully launch your behavioral health clinic or facility.

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Behavioral Health Business Plan for New Level of Treatment Program

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This business plan is a quick and dirty example of one that I wrote which helped secure $250k in investor money to help build an integrated mental health and substance abuse treatment center.

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Mental Health Private Practice Business Plan Template

Written by Dave Lavinsky

mental health private practice business plan

Mental Health Private Practice Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their mental health private practice companies. 

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a mental health private practice business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your mental health private practice business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a mental health private practice business or grow your existing mental health private practice company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your mental health private practice business to improve your chances of success. Your mental health private practice business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Mental Health Private Practice Businesses

With regards to funding, the main sources of funding for a mental health private practice business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for mental health private practice companies.

Finish Your Business Plan Today!

How to write a business plan for a mental health private practice business.

If you want to start a mental health private practice business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your mental health private practice business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of mental health private practice business you are running and the status. For example, are you a startup, do you have a mental health private practice business that you would like to grow, or are you operating a chain of mental health private practice businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

  • Give a brief overv iew of the mental health private practice industry. 
  • Discuss the type of mental health private practice business you are operating. 
  • Detail your direct competitors. Give an overview of your target customers. 
  • Provide a snapshot of your marketing strategy. Identify the key members of your team. 
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of mental health private practice business you are operating.

For example, you m ight specialize in one of the following types of mental health private practice businesses:

  • Cognitive Therapy : Focusing on psychotherapy that challenges negative patterns of thought about oneself and the world, cognitive therapy brings the patient to a better understanding of personal value in the world. 
  • Behavioral Therapy: This therapy is one that focuses on retraining one’s reactions to stimuli, thus removing neurotic symptoms.   
  • Holistic Therapy: A mental health private practice that centers therapy on a holistic platform is one that treats each individual as a multi-faceted being with all needs seen as equally important and in need of therapeutic healing. 
  • Interpersonal Therapy: Treatment of mood disorders and difficult inter-relational issues is the main focus of interpersonal therapy.

In addition to explaining the type of mental health private practice business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of patients served, the number of cases with positive outcomes, reaching X number of clients served, etc.
  • What is your legal business structure? Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the mental health private practice industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the mental health private practice industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your mental health private practice business plan:

  • How big is the mental health private practice industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your mental health private practice business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your mental health private practice business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, couples or families.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of mental health private practice business you operate. Individuals would respond to different marketing promotions versus families, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

Finish Your Mental Health Private Practice Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r mental health private practice businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes psychiatrists, other healthcare providers, or members of the clergy. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of mental health private practice business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide options for the uninsured?
  • Will you offer services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a mental health private practice business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f mental health private practice company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide on-call emergency therapy sessions, client referral incentives, or group behavioral therapy retreats?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the services you offer and their prices.

Place : Place refers to the site of your mental health private practice company. Document where your company is situated and mention how the site will impact your success. For example, is your mental health private practice business located in a quiet neighborhood office, a business district, or a standalone office? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your mental health private practice marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites 
  • Speak in community forums or blog as an expert
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your mental health private practice business, including answering calls, planning and providing therapy sessions, billing insurance and/or patients, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth session, or when you hope to reach $X in revenue. It could also be when you expect to expand your mental health private practice business to a new city.

Management Team

To demonstrate your mental health private practice business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing mental health private practice businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a mental health private practice business or successfully running a small therapy clinic.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 patients per day, and/or offer group therapy sessions ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your mental health private practice business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a mental health private practice business:

  • Cost of equipment and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your 5-year office location lease or a list of insurance plans you accept.

Writing a business plan for your mental health private practice business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the mental health private practice industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful mental health private practice business.

Mental Health Private Practice Business Plan FAQs

What is the easiest way to complete my mental health private practice business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your mental health private practice business plan.

How Do You Start a Mental Health Private Practice Business?

Starting a mental health private practice business is easy with these 14 steps:

  • Choose the Name for Your Mental Health Private Practice Business
  • Create Your Mental Health Private Practice Business Plan
  • Choose the Legal Structure for Your Mental Health Private Practice Business
  • Secure Startup Funding for Your Mental Health Private Practice Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Mental Health Private Practice Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Mental Health Private Practice Business
  • Buy or Lease the Right Mobile Mechanic Business Equipment
  • Develop Your Mental Health Private Practice Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Mental Health Private Practice Business
  • Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Mental Health Private Practice business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s business plan writers can create your business plan for you.

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Mental Health Private Practice Business Plan

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Want to start a private practice business? The rapidly increasing demand and untapped market make this an extremely lucrative business opportunity.

Anyone with expertise and resources can start a new business. However, you will require a detailed business plan to leverage your niche market and raise funds.

Need help writing a business plan for your mental health private practice? You’re at the right place. Our mental health private practice business plan template will help you get started.

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  • Fill in the blanks – Outline
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How to Write A Mental Health Private Practice Business Plan?

Writing a mental health private practice business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the mental health private practice services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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behavioral health business plan

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of mental health private practice you offer and the name of it. You may specialize in one of the following private practices:

  • Psychiatry practice
  • Neuropsychology practice
  • Behavioral therapy
  • Cognitive therapy
  • Specialized Mental health practice: Couples therapy, eating disorder, trauma and PTSD, addiction, grief.
  • Describe the legal structure of your private practice company, whether it is a sole proprietorship, LLC, partnership, or others.
  • Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established mental health private practice service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your mental health practice will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your mental health private practice business plan::

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the private practice services your business will offer. This list may include services like,

  • Assessments and evaluation
  • Treatment planning
  • Medication management
  • Therapy sessions
  • Psychoeducation

Treatment and therapies:

Mention different types of treatments and therapies you will offer at your private practice.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your mental health private practice plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your mental health private practice business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your mental health private practice, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, software & tools:.

Include the list of equipment and machinery required for mental health private practice, such as diagnostic tools, office equipment, EHR system, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your mental health private practice management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your mental health private practice services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the mental health private practice industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your mental health private practice business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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This sample mental health private practice business plan will provide an idea for writing a successful mental health private practice plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our mental health private practice business plan pdf .

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Frequently asked questions, why do you need a mental health private practice business plan.

A business plan is an essential tool for anyone looking to start or run a successful mental health private practice business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your mental health private practice company.

How to get funding for your mental health private practice business?

There are several ways to get funding for your mental health private practice business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

How do I write a good market analysis in a mental health private practice business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

  • Stating the objective of your market analysis—e.g., investor funding.
  • Industry study—market size, growth potential, market trends, etc.
  • Identifying target market—based on user behavior and demographics.
  • Analyzing direct and indirect competitors.
  • Calculating market share—understanding TAM, SAM, and SOM.
  • Knowing regulations and restrictions
  • Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my mental health private practice business plan?

The level of detail of the financial projections of your mental health private practice business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good mental health private practice business plan help me secure funding?

Indeed. A well-crafted mental health private practice business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a mental health private practice business plan?

Marketing strategy is a key component of your software company business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

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Training to Deliver Integrated Care pp 143–159 Cite as

Business Entrepreneurship: The Integrated Behavioral Health Business Plan

  • Ronald O’Donnell 3 &
  • Sue Dahl-Popolizio 3  
  • First Online: 23 August 2018

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The ability to write a business plan for a sustainable integrated behavioral health program requires competencies in business entrepreneurship. Leaders in integrated behavioral health will be called upon to design detailed business plans in order to successfully promote integrated behavioral health programs. This chapter is focused on the competencies necessary to write an integrated behavioral health business plan. These competencies include identifying opportunities and resources, creating strategies to demonstrate the value of integrated behavioral health, and how to promote the business plan via presentations to senior leadership. The components of the business plan include the executive summary, program description, industry trends and analysis, the target market, competition, strategic position and risk assessment, marketing plans and sales strategy, operations, technology plan, management, sustainability, and financials. Examples of measurement and evaluation of these competencies are included.

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The current state of healthcare transformation demands that the integrated behavioral health leader develops competencies as a business entrepreneur. The Triple Aim focuses on improved patient experience of care, population health, and cost savings which require business acumen to balance clinical and cost outcomes. The transition from fee-for-service to value-based healthcare will demand leaders who can effectively promote and negotiate innovative approaches to reimbursement for integrated behavioral health services. Most leaders in integrated behavioral health do not have formal education and training on business entrepreneurship, leaving them ill-prepared to address these new challenges. Developing an effective business plan is a key component of successful entrepreneurship. Specific training strategies and techniques are needed to help the learner acquire core skills and competencies necessary for developing an integrated behavioral health business plan. Developing these competencies will contribute to raising awareness of healthcare executives to the importance of integrated behavioral health in the emerging world of value-based primary healthcare delivery.

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Appendix: Behavioral Health Entrepreneurship Course Calendar

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O’Donnell, R., Dahl-Popolizio, S. (2018). Business Entrepreneurship: The Integrated Behavioral Health Business Plan. In: Macchi, C., Kessler, R. (eds) Training to Deliver Integrated Care. Springer, Cham. https://doi.org/10.1007/978-3-319-78850-0_8

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Executive Briefing | July 22, 2020

Health Plan Perspectives: Evolving to the Next Generation of Behavioral Health Solutions

By Dan Delaney

Managing Director

By Jeremy Stenger

Jackie Allard

Associate Principal

The demand for services to address behavioral health conditions – inclusive of Mental Health and Substance Use Disorders – has never been greater given changes in cultural acceptance, evolving regulation, increasing attention to integrated care, and most recently, the acute impact of the COVID-19 pandemic. Despite this growth in demand, the ability and capacity of the clinical delivery system (i.e., the supply side) to address it remains challenged. Given the significant implications on member outcomes, satisfaction, and clinical cost management, health plans are faced with a major challenge: how should plans evolve from traditional models and implement new behavioral health strategies that can more effectively address the growing, diverse and unmet needs of members and providers.

THE DEMAND FOR BEHAVIORAL HEALTH SERVICES IS REAL AND GROWING

The National Institute of Mental Health estimates that approximately one in five American adults live with a mental illness , and the demand for behavioral health services has never been greater. Several key factors are continually driving increased demand, including:

1. Changing Demographics & Cultural Acceptance                           

2. increased condition prevalence, 3. a more favorable regulatory environment                                         , 4. rise in consumerism, 1. changing demographics & cultural acceptance.

Societal and personal stigmas associated with a behavioral health diagnosis act as a significant barrier for those seeking treatment. In fact, it is estimated that two-thirds of individuals with a behavioral health condition will never seek treatment due to perceived stigma. The consequences of delaying or avoiding care are especially visible through an economic lens: the National Alliance on Mental Illness estimates that untreated mental illness costs the U.S. economy approximately $200 billion in lost earnings per year . Despite this systemic challenge, data suggests that a shift in perspective is occurring. Not only are younger generations more attuned to behavioral health conditions and treatment in principle, they are seeking care at unprecedented rates in comparison to other demographic cohorts. A recent study found that college counseling center utilization increased by 5 to 6 times the rate of institutional utilization over the five year period measured . While a shift in acceptance is driving increased demand for behavioral health services amongst younger cohorts, the prevalence of costly physical and behavioral health comorbidities in senior populations is also contributing to this growing trend.

Various cultural and other societal factors are contributing to a rise in mental health and substance use disorders that transcend geographies and demographics. The rate of opioid overdose death has increased fivefold from 1999 to 2018, claiming the lives of more than 100 Americans each day . Not only has the opioid epidemic increased demand for behavioral health services, it has provided a national impetus to more broadly acknowledge and address mental health and substance use challenges.

Additionally, there is a strong correlation between Millennial and Gen Z behavioral health challenges and the continued use of social media. A related study demonstrated significant association between depression and social media use – those who were categorized as “heavy” social media users were almost 3x as likely to be depressed as their peers who were categorized as “occasional” users.

behavioral health business plan

3. A More Favorable Regulatory Environment

Building on mental health parity laws that were introduced in 1996 and expanded in 2008, federal and state governments continue to update guidance and regulation related to behavioral health care delivery. For example, telehealth regulation continues to be dynamic, with most states providing some form of reimbursement for live video within their Medicaid programs, but with key differences on specific coverage aspects (e.g., origination location).

Health plan members – consumers of physical and behavioral health services – increasingly expect intuitive navigation and a consumer-grade experience from their health plans. Similar pressures from employer groups are driving increased investment in accessible mental health tools and programs (e.g., expanded EAP and employee resiliency tools).

In the behavioral health space specifically, clinical tools made available via mobile phone or web-based applications allow for relative anonymity in accessing care, likely reducing stigma-induced barriers to care. This advantage has been recognized by those seeking behavioral health treatment virtually – 45% of Americans surveyed indicated an openness to trying tele-behavioral health services . However, a significant opportunity remains in translating that awareness and openness to telehealth adoption – only 7% of those surveyed indicated having received treatment via this care delivery channel .

The market forces outlined above serve as a catalyst for health plans to diverge from the status quo. Demographic shifts driving increased acceptance and utilization of behavioral health services – coupled with rapidly changing consumer expectations – yield an environment in which health plans can capitalize on opportunities to improve access to personalized care.

The novel coronavirus has also created spikes in demand as a result of coronavirus-related worries or stressors, with notable impacts to frontline workers, those experiencing job loss or income insecurity, and parents with newly expanded childcare responsibilities. In fact, a June 2020 study found that 36.5% of U.S. adults report symptoms of anxiety or depressive disorder, a more than 300% increase from 2019 .

Facing an unprecedented demand for behavioral health services, federal regulatory bodies have notably relaxed and/or amended standing regulations to increase access for previously non-engaged members. These changes may provoke future discussion around a continued balancing of regulation with accessibility and affordability, likely creating a path for broader adoption and acceptance of virtual care.

CURRENT CHALLENGES IN EFFECTIVELY ADDRESSING GROWING DEMAND

Cultural, environmental and regulatory forces are increasing demand for behavioral health services and concurrently, an expectation to ease access to these services. Health plans must consider the systemic and acute challenges that plague their behavioral health delivery systems, and consequently, their membership. Acknowledging the root causes and implications of these challenges represent a promising first step for health plans seeking to effect appropriate change within their respective markets. Below, we’ve outlined several of these challenges faced by health plans and their members:

1. A Shortage of Appropriate Clinicians

2. fragmentation in current care delivery, 3. suboptimal member education & navigation.

Challenges in access to behavioral health clinicians are multi-faceted, involving both significant gaps in geographic coverage of mental health resources as well as a supply of clinicians being outpaced by demand for services. In addition to an overarching shortage of behavioral health professionals, there is long-standing concern with accessibility to behavioral health services for members living in rural or otherwise economically burdened geographies. In April 2019, The Health Resources & Services Administration, a unit within U.S. Department of Health and Human Services (HHS), estimated that over 120 million Americans live in a mental health professional shortage area , indicating a lack of professionals and facilities within a given geography.

behavioral health business plan

Primary care providers are often the first point of clinical contact for members, both for acute incidents and for traditional “check-in” visits. For this reason – coupled with challenges in reaching behavioral health clinicians – the primary care setting has become the “de facto” mental health treatment system in the United States.

Despite this opportunity for primary care physicians (PCPs) to potentially address gaps in holistic physical and behavioral health care, the historical structural chasm between physical and behavioral care delivery – educationally, clinically, financially, and administratively – has prevented PCPs from effectively diagnosing and treating behavioral health conditions. This chasm has been partially driven by

the historical independence of behavioral health providers and the orientation of primary care, the latter of which often lacks the training and/ or resources needed to effectively treat behavioral comorbidities. Notably, it is estimated that only 50% of patients with latent behavioral health conditions who are seen in a primary care setting are accurately diagnosed . As a result, clinicians are challenged to coordinate the appropriate pharmaceutical, social, and other clinical interventions (such as cognitive behavioral therapy).

Independent of access and capacity issues, health plan members are often not adequately equipped with effective resources to navigate care options. A common – and often costly – outcome of this gap is the utilization of out-of-network services when receiving behavioral health treatment.

A recent actuarial study on network use suggests that patients are 5.2x more likely to use out-of-network inpatient care for behavioral health care than for medical or surgical care . While the reasons underlying out-of-network utilization are myriad – and for behavioral health, often personal – improved member understanding of available, local options could significantly encourage movement towards in-network care options.

Faced with a scarcity of appropriate resources and difficulty in locating accessible resources, consumers often seek ineffective and often costly solutions for both the member and plan. As such, it is the health plan’s responsibility to develop and connect members to solutions that are both clinically effective and cost-efficient, and to promote change within their organization that addresses deeper issues of fragmentation between physical and behavioral health care delivery.

WHAT CAN HEALTH PLANS DO TO ADDRESS THESE CHALLENGES?

Given the increasing demand for services and multitude of challenges within the healthcare ecosystem, the opportunity for health plans to address the ongoing operational, clinical, network, and financial challenges associated with behavioral health has never been greater. Health plans are positioned to play an important integrator role, bridging gaps across the many stakeholders – members, providers, employers, government plan sponsors, and other insurers – to effectuate change, improve clinical quality, and capture value associated with integrated physical and behavioral health care.

Further, the potential return to a health plan in improved cost and outcomes for members with physical and behavioral health comorbidities warrants the investment. According to a recent actuarial analysis of cost and utilization data, medical expenditures associated with chronically ill members with a behavioral health comorbidity are two to three times higher than those without such a comorbidity . To manage these costs and improve outcomes for comorbid, high acuity members, as well as to meet the growing demand for behavioral health services across all acuity levels, health plans can consider a variety of approaches and emerging models, which are not mutually exclusive.

In the section below, we will explore a few of the impactful ways health plans have invested in behavioral health through advancements in their (1) behavioral health operating model , (2) clinical and network partnerships, and (3) expanded advocacy and community health engagement .

behavioral health business plan

  REIMAGINE THE TRADITIONAL OPERATING MODEL

Many health plans are focused on inventorying, redesigning, and re-investing in their internal operating models in order to build a more centralized structure and accountability for behavioral health programs. Critical success factors for any operating model design focused on behavioral health include:

1. Vision, Leadership, and Management                             

2. building insourced capabilities, 3. the evolving role of mbhos                                                     , 4. other enabling partners, 5. overall program integration, 1. vision, leadership, and management.

Behavioral health leadership roles are often subsumed as a part of broader health plan roles, resulting in gaps in accountability and a lack of focus on improving the plan’s behavioral health programs. Behavioral health leadership – through proper governance and oversight – can serve the role of coordination and alignment with the health plan’s enterprise operational processes, platforms, and analytics strategies. This includes integrating with the health plan’s broader care management initiatives, provider network strategies, and customer-centric (e.g., employer group) programs. Beyond dedicated program leadership, behavioral health teams require an advanced level of expertise, experience, and credentials to appropriately manage the nuances of behavioral health. For example, call center staff need proper training and experience to educate members on their mental health and substance use benefits while simultaneously being able to detect a potential crisis for appropriate clinical intervention. Similarly, behavioral health case managers and physical health case managers need to partner together to support comorbid members in their complex care navigation needs.

Health plans continue to evaluate whether insourcing or outsourcing management of behavioral health services is appropriate given standing relationships with vendors, available enterprise resources and capital, and the desire for an integrated operating model. There are significant benefits to insourcing behavioral health management, particularly related to network management, care management, and customer service, given the universal objective to better integrate physical and behavioral health. Because of these potential benefits, many have made the decision to move away from a legacy outsourced model. For example, 23 of 36 Blues plans now manage behavioral health services internally, representing nearly 80% of Blues membership. Despite this trend, insourcing capabilities remain a complex decision because of the significant enterprise impact and high switching costs. As a result, health plans should critically evaluate the decision to insource in light of other competing enterprise initiatives, available funding and resources, and risk tolerance.

“Horizon recognizes the need to treat people holistically – both mind and body – so that they may achieve their best health and best quality of life. The success of our proactive integrated care strategy has been a result of substantial investments in tools and partnerships, delivering solutions for all members across the continuum of need.” S uzanne Kunis , VP of Behavioral Health at Horizon Blue Cross Blue Shield of New Jersey

3. The Evolving Role of MBHOs

Though many health plans are choosing to insource behavioral health functions to enable integration, there remains an important and evolving role for traditional Managed Behavioral Health Organizations (MBHOs) to play. Health plans are finding innovative ways to partner with MBHOs through bespoke delegation models to round out their behavioral health programmatic offerings.

Additionally, MBHOs are beginning to partner with other enabling vendors in health plans’ behavioral health ecosystems to further support overall physical and behavioral health integration. For example, MBHOs are evolving their capability sets to address targeted population cohorts (e.g. highly complex), lines of business (e.g., Medicaid), and / or growing demand areas (e.g., BH pharmacy management), and health plans are evaluating partnership models that are more akin to targeted point solutions arrangements rather than full outsourcing of all services.

Increasingly, health plans are realizing the potential dividends of partnering with enabling vendors. The market has recognized the power of these point solutions to disrupt broken care delivery models as mental health startups reached record highs in funding in Q1 2020, surpassing $575 million in equity investment for the quarter alone . Tech-enabled point solutions are entering the market with innovative solutions to address member needs across the clinical acuity spectrum and through the appropriate partner for support in filling health plan capability gaps can be a challenge in and of itself. Health plans should first identify the process / solution gap that they are looking to close, then determine the targeted cohort(s) of membership to serve with the solution, and finally, evaluate vendor features to ensure alignment and integration with the overall behavioral health program.

A final piece of reimagining the traditional behavioral health operating model is to bring all the pieces together – across internal functions and enabling partners – into a cohesive, integrated solution. On the surface, this may seem like an obvious necessity for program success, but many health plans are challenged with aligning clinical, operational, and network programs across multiple parties in an optimal and efficient manner. For example, a health plan may select multiple enabling partners with the goal of serving all acuity levels of their membership base. The challenges in ensuring coordination in member outreach, care management, and – not to mention – financial reconciliation to ensure appropriate rewards, are trying and complex. Health plans aim to monitor program effectiveness and return on investment in order to support future programmatic strategy, but this can be particularly problematic when multiple parties are involved. A thoughtful and organized approach to vendor management and program oversight through dedicated leadership is a first step in ensuring behavioral health program integration and effectiveness.

behavioral health business plan

INTEGRATE CLINICAL PROGRAMS AND NETWORK PARTNERSHIPS

By establishing strategies across the spectrum of behavioral and physical health acuity levels – from low risk members seeking Employee Assistance Programs (EAP) services to high and acute risk members relying on intensive case management – health plans are seeking to address the mental health and substance use needs of all members. Fortunately, new and innovative models have emerged to support health plans through this evolving landscape.

1. Worried Well and Resiliency                                 

2. collaborative care models and integrated networks, 3. substance use disorder programs               , 4. virtual providers, 1. worried well and resiliency.

As previously mentioned, today’s consumer is seeking a member centric experience in accessing care especially for managing ongoing mental health. These member needs can be fulfilled through improved availability of online content ( e.g., Cigna’s forward facing Behavioral Health landing page ) or through access to tech-enabled, mobile-friendly tools supporting on-demand mental health services. Coaching and resiliency tools such as Ginger , Joyable , and TalkSpace , afford members with real-time, on-demand access to lower levels of care through personalized approaches that meet the expectations of today’s consumer. These solutions bring mental health support to a significant portion of membership who may not otherwise engage for their mental health needs.

Collaboration between behavioral and physical healthcare providers has improved member experience and outcomes and reduced cost of care. Many health plans focused on integration have implemented programs to improve PCP diagnosis and treatment of mental health conditions as well as to enable coordination between physical health and behavioral health providers. Depending on in-house capabilities and support available within network provider offices, it may be prudent to evaluate technology partner solutions designed to support greater PCP diagnosis and treatment of mild-to-moderate mental health conditions. For example, companies including Quartet Health and Express Scripts through the InMynd Behavioral Health Care program are partnering with health plans to promote the identification and treatment of mental health issues in PCP offices through advanced analytics and individualized care planning. Finally, although value-based reimbursement models are less mature in the behavioral health arena, there is an opportunity for health plans to consider pay-for-performance models within the context of integrated care networks. Through this approach, providers are rewarded for care coordination supporting improved outcomes and overall decrease in total cost of care.

“The Coronavirus has only highlighted what we have long known: mental health is health. In recent years, and increasingly today, we are seeing leaders across the industry focus on building a mental health care system that treats it as such, rather than as a silo outside of traditional health care. An aggregator of high-quality mental health services and solutions, both virtual and face-to-face, Quartet helps people with mental health conditions easily and efficiently get the best care for their specific needs, and link it back to their overall healthcare experience – physical and mental.” David Wennberg , MD, MPH, CEO of Quartet

3. Substance Use Disorder Programs

The growing pervasiveness of substance use disorders – particularly related to opioid use – is well-documented. Health plans have deployed various programs to address SUD, ranging from Medication Assistance Treatment (MAT) programs which combine behavioral therapy and medications to treat substance use holistically to incentivizing physicians to use advanced Prescription Drug Monitoring Programs (PDMP) which can identify abnormal patient behavior to effectively prevent the misuse of prescription drugs. Additionally, tech-enabled tools such as WorkIt Health , which enables addiction treatment through telemedicine, are playing network-extender roles for health plans seeking to provide increased access to SUD care. Regardless of programs deployed, a health plan’s SUD solution should address the important interconnectedness of mental health and the substance use condition in order to comprehensively address the member’s needs.

Given market challenges around accessibility to appropriate in-network behavioral health providers, many health plans are considering augmenting their brick-and-mortar network through collaboration with telehealth providers. These vendors can act as either network extenders – making new, non-local providers available to members via telehealth solutions – or as network enhancers – implementing telehealth solutions for existing network behavioral health providers. Such solutions are necessary to meet demand for increased virtual care: since summer 2019, virtual behavioral health care appointments have increased by 160%, with half of that growth gained since the start of the COVID-19 pandemic . Lastly, oftentimes virtual providers support access gap closure while providing the dual benefit of remote therapy for members seeking anonymity.

“There has been a clear shift in consumer and health plan consciousness around mental health over the last five years. Virtual, technology driven solutions in mental healthcare have come a long way in responding to that growing awareness and need by broadening access and augmenting the supply required to meet the increased consumer demand. This is the first frontier for virtual mental healthcare. The second frontier, arguably as critical and a requisite to the first, is using that technology to force evidence based and high-quality treatment, thereby ensuring that the right outcomes are achieved for both the patient and the health plans.” Trip Hofer , CEO of AbleTo, Inc.

ENGAGE IN ADVOCACY AND COMMUNITY HEALTH

Attention to the broader community – beyond the efforts through plan-sponsored programs catering to specific members – is an important aspect to an impactful behavioral health strategy. Engagement in advocacy and community health requires both financial investment and organizational focus on community behavioral health, with the objective of addressing the following external factors:

1. Community Partnership

2. legislative advocacy, 3. philanthropic investment.

Recognition of the role that social determinants play in the development and, consequently, treatment of behavioral health conditions is a crucial component of a health plan’s overall behavioral health strategy. Health plans can serve as amplifiers of local, trusted community partners (e.g., schools, social organizations, park districts) through financial, awareness, and navigation campaigns.

Choosing to partner with local organizations can address questions of accessibility – as members likely live in proximity – and of stigma – as members are more likely to frequent and trust these organizations. In addition to supporting existing programs and community partners, health plans can create and share original content through destigmatization and awareness campaigns to highlight the importance of mental health and share details about available resources for both members and for the broader community.

While community-based efforts to address barriers to quality behavioral health care are crucial, broader legislative advocacy has the ability to effect change at a broader level for both current and prospective health plan members. Health policies which improve communication and collaboration between government and health plan stakeholders could cultivate an environment that better addresses behavioral health needs for members across all lines of business.

Finally, health plans can utilize philanthropic investment to support local, state, and federal efforts around behavioral health awareness and treatment (e.g., suicide prevention efforts). Health plans also can invest capital in provider-led programs intended to improve the behavioral health status of their patient populations.

A notable example of health plan commitment to improving behavioral health outcomes at a local level can be seen through Blue Shield of California’s recent launch of the BlueSky initiative , a multi-year, statewide campaign to improve awareness of and access to mental health resources for middle and high school students in California. The initiative commits to providing Youth Mental Health First Aid for teachers and staff, additional one-on-one counseling resources and peer support groups for at-risk students, and online resources and tools for all students.

HOW CAN PLANS BEGIN TO EVALUATE THEIR BEHAVIORIAL HEALTH PROGRAMS?

The above approaches represent concrete steps that health plans are taking to invest in their behavioral health solutions to drive clinical integration, improve cost and quality management, streamline operational performance, and enhance member experience. Recognizing that there is no one-size-fits-all approach, organizations must determine the combination of solutions that work best for their business and local market dynamics. Given the significant impact that a focused, integrated behavioral health strategy can have on member experience, outcomes, and costs, we believe that reevaluating a plan’s existing organizational approach and programs can have significant returns for all stakeholders.

HEALTHSCAPE CAN HELP.

HealthScape has worked with health plans throughout the country to design and launch next generation behavioral health solutions across all market segments. Our expertise and execution-focused approach helps clients develop and implement innovative and pragmatic strategies, new operating models, integrated care programs and emerging vendor offerings. As the challenges and opportunities in behavioral health continue to evolve, HealthScape is well positioned to serve as your advisor during this journey.

Contact Dan and Jeremy for more information.

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Strategies to Improve Your Mental Health Business

Strategies to Improve Your Mental Health Business

There are many strategies to consider when looking to improve your mental health business. Where do you start? Most successful behavioral health practices have these three things in common:

  • They provide high-quality clinical care.
  • They are profitable.
  • They proactively mitigate risk for their practice.

We’ve found that many behavioral health practices excel in one or two of these areas, but each practice tends to have an area that they wish they could improve. With a combination of thoughtful intention and the right technology, behavioral health practices can effortlessly achieve the full trifecta of high-quality care, profitability, and risk reduction.

Let’s take a look a closer look at the top strategies to improve your practice.

Increase the Quality of Clinical Care Provided by Your Mental Health Business

As a mental health care provider, you take the quality of your work seriously. Your goal is to provide effective treatment and ensure that your patient is benefiting from your care.

But how do you measure the effectiveness of your clinical care? Isn’t this subjective? No. Or at least, it shouldn’t be.

Use measures to improve patient outcomes

Symptom rating scales are a proven way that providers can measure and track the effectiveness of their treatment over time. They allow you to focus on providing patient-centered care and improving outcomes.

Care provided with the assistance of outcome measurement is often referred to as Measurement-Based Care. Because of its association with better clinical outcomes, it has become a standard approach in behavioral health care. Outcome measures in behavioral health are analogous to quantifiable lab data such as HgB A1C for diabetes in physical healthcare. They are an objective means to track progress and make necessary adjustments in a treatment plan over time.

Examples include the PHQ-9 for depression, GAD-7 for anxiety, SPIN for social phobia, and AUDIT for alcohol use. It is not uncommon for patients to downplay their symptoms and avoid discussing them in an objective way (they want to please you). Giving your patient a measure to fill out minimizes your subtle interference as a provider and helps you measure, over time, how they are doing. It can also give you a glimpse into what is happening in the moment and trigger pertinent conversation.

Why don’t more practices use outcome measures as a standard method for tracking patient improvement?

When you don’t have the right EHR in place, facilitating the use of measures can be cumbersome and tracking results over time becomes nearly impossible. Most EHRs are developed for primary care or other specialties, so including assessments specific to mental health is not a priority for them.

Using an EHR platform that is specialized for behavioral health gives you access to the specific mental health assessments you need at your fingertips. It should allow you to easily send the measures to patients through a portal on a one-time or regular basis. And once the patient completes the measure, the clinical data should flow directly into your note, providing you with background and insight at the point of care.

Suddenly you have objective data that allows you to track your patient’s progress over time, without any hassle. This data helps you evaluate your treatment and make necessary changes. It also provides evidence to payers that you are providing quality care to your patients, resulting in higher negotiated reimbursement rates that can really add up over time.

Increase the engagement of your behavioral health clients

Another factor in providing high-quality clinical care is ensuring high levels of engagement. Individuals living with serious mental illnesses can be difficult to engage in ongoing treatment, contributing to higher drop-out rates. Poor engagement can lead to worse clinical outcomes and symptoms relapse.

When using a proper EHR platform , patient engagement increases. Some of the features that allow patients to stay engaged with their mental health provider more easily include the following:

  • Having a secure, convenient portal where patients can easily access pertinent demographic and billing information and can take an active role in completing assessments.
  • Ability to request appointments online and receive automated appointment reminders, which can dramatically increase your client show rates.
  • Ability to fill out intake paperwork and symptoms screeners from home, before even stepping foot in your office. This reduces the time they spend in the waiting room and increases the quality of time they spend in session with you.
  • Secure HIPAA-compliant messaging that allows you to communicate with your patients outside of a session. This is especially useful for simple administrative reminders or to quickly verify insurance information.
  • Ability to view their billing balances and look at their statements online.
  • Ability to have telehealth visits with you.

Increasing the quality of care you provide to your patients is the first step to improve your mental health business . Consistently using outcome measures and increasing the engagement with your patients can help you achieve the high level of care you are striving for.

Increase the Profitability of Your Mental Health Business

Providing excellent clinical care is your top priority, but you are also a business owner, and that means you should always be looking for ways to improve the profitability of your mental health practice.

There are four primary ways to increase your profitability: 1) Increase the number of patients you see. 2) Increase the productivity of your clinical staff. 3) Decrease your administrative costs. 4) Increase the effectiveness of your behavioral health practice’s billing .

Get more clients for your practice

One of the most effective ways to increase your volume of clients is to work your referral network. Identify new referral resources and establish a rapport with them. Reach out to your existing sources to nurture that relationship.

Digital marketing is also an effective, scalable way to be visible when patients are searching for care and therefore, increase patient flow. This includes search engine marketing, email outreach, and social media, among other things. If you’re not familiar with how to set up an effective digital marketing strategy, consider bringing in the help of an outside agency that can help you identify your target audience and get the right message in front of them. This can be a nominal investment that will typically pay dividends.

Increase the productivity of your clinical staff

How much of your providers’ time is spent scanning and uploading intake paperwork or health questionnaires? How long does it take them to generate their clinical notes? How often are billing errors made or billing diagnosis missed because providers have to re-enter information in multiple places?

These are all issues that behavioral health professionals struggle with. As a highly trained provider, your time should be spent practicing at the top of your license, not worrying about paperwork or software inefficiencies.

The right technology removes these issues altogether, minimizing the amount of non-value-add administrative work for providers and maximizing the time spent focusing on providing great care to the patient.

  • Find a scheduler that houses all the pertinent information for creating a charge, including the CPT code, Facility code, and Provider name – and then make sure this data automatically flows into your clinical note.
  • Give your patients the ability to fill out and sign important forms (disclosures, no-show policy, fee agreement and other office policy and procedures) prior to their first visit and automatically integrate the information into the clinical chart – before they even step foot in the door.
  • Find a platform that allows you to document thoroughly, but efficiently. Your session should be between you and your client – not your computer. However, too much automation can make your notes too generic and not helpful. What’s right for one provider might not be best for another, so having a wide range of options will put each clinician in the driver’s seat, giving them the ability to select from pre-populated mental-health-specific content and customizing when it makes sense. For ultimate productivity, look for an EHR that allows you to include commonly used text phrases or prompts in your note. These inputs can generate narrative, giving you a comprehensive finished product that you are proud of.
  • Make it easy to coordinate care. Whether you want other team members to start a note, take vitals, or queue up prescriptions for you to sign off on, the best EHRs are flexible and allow you controllable options for ways that your staff can be involved.
  • Increase your efficiency with e-prescribing. Prescribe, renew, and discontinue medications within your clinical note or through your patient chart directly, while eliminating the excess work of importing or requesting a patient’s medication history. If you equip your team with integrated prescribing capabilities, your providers can send scripts with less data entry and fewer prescribing errors.

Lower the administrative costs for your practice

From scheduling appointments and managing no-shows to stuffing envelopes every month, the administrative costs of running a practice add up.

At what point is it more efficient to invest in technology that can streamline your administrative duties and minimize those costs? Small or solo practices will often perform administrative tasks in order to mitigate costs, but self-managing the practice’s scheduling, intakes, and billing is a serious time commitment.

The first step is to take stock of your administrative costs and assess which of those tasks are cutting into your billable hours. From there, you can select which costs could be eliminated or significantly reduced with the right technology. Common costs to scrutinize include the following:

  • Confirm what time an appointment is scheduled for
  • Schedule a future appointment
  • Ask for a billing statement to be resent
  • Update demographic or insurance information due to moving or changing insurances
  • Ask for another copy of outcome measures that need to be completed
  • Ask for a copy of an internal form, such as a release of information

By utilizing a practice management system that addresses these items within a patient portal, practices see an average of 30-50% decrease in their call volumes as patients become more self-sufficient. Not only does this decrease the amount of time your staff spends on the phones, it has been shown to increase patient satisfaction, as well.

  • Signing forms and managing copies of signed documentation: Switch to a digital-only workflow that allows patients to sign documents electronically and send back to you through their portal.
  • Setting up recurring appointments and group scheduling: Integrated calendar options can alleviate the burden of coordinating schedules.
  • Mailing statements: Consider switching to an online statement system. One of the top reasons a client calls their practice is to find out their statement balance. If you have the ability to provide electronic statements in a patient portal, you can eliminate the time and cost mailing statements each month and answering these types of calls.
  • Appointment reminders: Calling customers to remind them of their appointment is undoubtably an effective way to decrease no-show appointments, however, doing this can also sink a tremendous amount of your staff’s time. The best scheduling systems allow you to eliminate this part of your team’s workflow altogether by setting up automated text, email, or phone call reminders at the cadence you choose.
  • Claims management: Insurance billing can provide many benefits for a private practice; however, claim denials, non-timely filing, deductibles, co-pays, and co-insurance create challenges and can dominate your staff’s time. Find an EHR with integrated workflows and insurance claims processing and you will save your practice a significant amount of time and effort, plus reduce the chance for billing errors.
  • Reporting: Tracking the productivity and financial health of your practice can be a significant undertaking without the right tools. With the right practice management software , you should have a dashboard-level view to give you the most important information that is required for you to effectively run your business, as well has have the ability to run reports showing your charges, payments, and adjustments for any date range and provider. This data allows you see if you are improving or regressing so that you can make an appropriate action plan to address the issue.

Increase your billing effectiveness

The right technology can help automate your billing cycle, payment collection, and authorization tracking. As noted above, having an appropriate level of automation can certainly save your staff time. But it can also increase the total amount your practice is able to collect. These factors can improve your billing effectiveness:

  • Outcomes data: Measuring what you do with patients can certainly pay off. Not only are you improving clinical quality, but you can also increase your profits. Clinicians that do value-based care can negotiate for higher reimbursement rates with their insurance payors. On average, this rate is between $4-$8 per session, which adds up over time.
  • Visibility: Make sure you have critical information accessible to your staff, such as what info each payer needs for maximum reimbursement or which patients have a balance that has fallen behind.
  • Integrated credit card processing: For patients that have signed your practice’s no-show/late/cancellation fees policies, this gives you the ability the charge the card on file immediately to collect payment for the no show.
  • Reporting and tracking: It is common for an insurance company to tell you that they won’t pay you because a claim wasn’t submitted on time. A billing software with claim submission reports allows you to see the date of submission and track timely filling. If you have reporting capabilities that allow you to see productivity by payor or your average amount of days charges are outstanding, you can make important business decisions that will help you to get paid more, and sooner.

Reduce the Risk for Your Mental Health Business

You work hard day-in and day-out to provide exceptional clinical care. You have taken steps to increase your profitability. However, for many behavioral health practices, thinking about how to reduce the risk of litigation or how to pass an audit with little effort, takes the back burner. In high-stakes situations, a bad plan or sub-par technology can be detrimental for your practice – or your patients. The final step to improving your mental health business is to reduce your risk.

Be prepared for an audit or legal action at any time

For many practices, clinical documentation is handwritten, printed, or scattered throughout a variety of Microsoft Word documents. When being audited or subpoenaed, a significant amount of work must go into consolidating, sifting through, and filling holes in your documentation. Not only does this take an inordinate amount of time, but it creates a high level of stress for all involved.

With the right EHR , your practice is always ready for whatever comes its way, be it an audit or a lawsuit. Here’s the functionality you should look for that will ensure you’re ready at the drop of a hat:

  • Integration and automation: With integration and automation between scheduling, documentation, and billing, there is an error-free journey for claims and documentation, giving you peace of mind that your notes and accounts are secure and reliable.
  • Robust reporting: This makes an auditor’s job easy to pull the data they need quickly.
  • A good dashboard: Gives clear and highly prioritized data to clinicians and administrators so they can stay on top of important financial and hygienic KPIs.
  • Detailed documentation: It is critical to be prepared for any common legal scenarios that commonly happen in the world of private practice, including subpoenas, suicide risk assessments, malpractice suits, etc. Using an EHR that’s built specifically for behavioral health will arm you with the most appropriate documentation for these scenarios. Detailed documentation allows you to be prepared and confident for any otherwise-unnerving situation.

Can Behavioral Health Software Improve Your Mental Health Business?

If you’ve already optimized your practice for these three pillars, congratulations! If there are areas where you would still like to improve, we invite you to check out Valant’s Behavioral Health EHR and see if it may be a good fit for your practice.

Your Turn to Make a Move

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Could your patient care process be simpler A look at Valant’s EHR workflow for the busy clinician

EHR Automation Features That Improve Practice Efficiency

behavioral health business plan

  • OutcomeTools
  • OutcomeTools Questionnaire Library
  • Support FAQ
  • BestNotes Support
  • Account Management
  • Clinical Advisors

Human Resources 101: Getting Started in Your Behavioral Health Business

Human resources (HR) is a broad term that covers everything involving employees, and the tools and processes you use to manage them. This includes hiring, compensation, payroll, employee training, termination, and tax and labor laws. Some aspects of HR involve compliance with state and federal requirements. 

If your behavioral health business has any employees, you should have some type of HR in place. Not only does it keep you compliant with regulations, but it helps you attract and keep good employees. 

Here are the basics you should know about establishing HR functions in your new behavioral health business.

  • Create an HR plan.

The first important step in setting up your HR is to create a strategy to help guide future HR decisions. While this plan will differ from one business to another, some general things to consider include:

  • Written policies for management and employees, with your business’s policies, office procedures, and conflict resolution
  • Stating your business mission and goals
  • Clearly defining employee roles
  • Plans for managing employees, including how to handle scheduling and absences
  • Processes for recruiting and hiring , training, and even terminating employees
  • How to compensate employees, including benefits such as healthcare and vacation
  • Following federal, state, and local labor laws

Your plan may change as you figure things out and learn what works and what doesn’t. Your HR needs also may evolve as your practice grows or laws and regulations change. You don’t have to stick to the first strategy or processes you choose.

  • Fill in your talent gaps.

Does your business already have the talent you need to follow your HR plan and fulfill all your HR tasks? If so, decide who will handle which HR tasks. 

Are there areas where you don’t have all the necessary skills or experience to handle your HR tasks? You and your team members may need additional training. Alternatively, you may need to hire someone to handle your HR .

At this point, you should start looking into specialized software that can help you handle certain HR-related tasks, such as scheduling or payroll. If your behavioral health business already uses digital tools, ask your vendors and third-party partners about its HR capabilities.

  • Define HR success.

Even after fine-tuning an HR strategy, you should not just sit back and see what happens. Instead, decide how to determine whether your HR processes are actually working. Choose a few key performance indicators (KPIs) that you will follow over time to see what is or isn’t working.

Some common KPIs to measure for your HR processes include:

  • Length of time to hire employees
  • Employee retention
  • Client satisfaction
  • Employee satisfaction
  • Absenteeism
  • Employee performance

Choose KPIs that make sense for your business. If you are not looking to hire many (or any) employees, you probably don’t need to track time to hire or employee retention. However, if you have a small team, then each employee’s performance can have a huge impact on your business, so that may be a beneficial KPI to track.

Software and other tools can help you automate HR tasks and better track and analyze certain performance measures. Which tools you choose may partially depend on the particular KPIs you decide to track.

Launching (or growing) an independent behavioral health practice? The right tools can help determine whether you are frustrated and disorganized, or streamlined and profitable. Contact the team at BestNotes to learn how our software can help make your practice more efficient.

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How the “Happy Chemicals” Affect the Brain and Mental Health November 27, 2023

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  1. FREE 7+ Mental Health Business Plan Samples [ Clinic, Charity, Counseling ]

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  2. Mental Health Business Plan

    behavioral health business plan

  3. FREE 7+ Mental Health Business Plan Samples [ Clinic, Charity, Counseling ]

    behavioral health business plan

  4. 9+ SAMPLE Mental Health Business Plan in PDF

    behavioral health business plan

  5. FREE 14+ Sample Business Plan Templates in PDF

    behavioral health business plan

  6. Wellness Plan Template Mental Health

    behavioral health business plan

COMMENTS

  1. Psychological Health Center Business Plan

    Goal 1: To continuously develop, strengthen, and improve services offered by the Center. Strengthen the current payor mix by developing and maintaining strategic alliances with five major behavioral health managed care companies. Identify and develop strategic alliances with three community human service and addiction agencies.

  2. Mental Health Business Plan

    Mental Health Business Plan 3+ Mental Health Business Plan Examples 1. Mental Health Business Plan Template 2. Business Plan for Mental Health Generally, creating a business plan takes a complicated process. There are a lot of aspects you need to look into in order to make your business a success.

  3. Business Plan Template for Behavioral Health

    Creating a business plan for a behavioral health clinic or facility is crucial for attracting investors and securing funding. With the Business Plan Template for Behavioral Health, you can: Clearly define your clinic's mission, vision, and goals, showcasing your commitment to providing quality behavioral health services

  4. Developing A Business Plan for Your Mental Health Private Practice

    As behavioral health providers, you all are in the business of saving lives. But what makes your services unique? What value are you bringing? Make sure when you are drafting your mission statement you answer these four questions: What does my practice do? How do we do it? Whom do we do it for? What value does your practice bring?

  5. Behavioral Health Business Plan for New Level of Treatment Program

    Behavioral Health Business Plan for New Level of Treatment Program Larry Rinish This business plan is a quick and dirty example of one that I wrote which helped secure $250k in investor money to help build an integrated mental health and substance abuse treatment center. See Full PDF Download PDF Related Papers Ardis Hanson

  6. Mental Health Private Practice Business Plan Template

    A business plan provides a snapshot of your mental health private practice business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans. Why You Need a Business Plan

  7. How to Create a Solid Business Plan for Your Private Ther

    Consider these possibilities: Commit to spending a certain number of hours each week on marketing strategies. Use those hours to network and meet with potential referral sources, plan new ...

  8. Mental Health Private Practice Business Plan [Free Template

    Writing a mental health private practice business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business ...

  9. How to Create a Business Plan for Your Behavioral Health Practice

    Learn how to write a business plan for your behavioral health practice that covers general and clinical aspects, such as products, services, goals, marketing, and financing. Find tips on how to start small, network, and customize your plan to suit your personal style and needs.

  10. Psychiatric Business Plan Template

    The three basic choices for your psychiatric business entity are: sole proprietorship, LLC, or S corporation. The choice is based mainly on relative costs, tax implications, and general business liability (rather than professional liability).

  11. PDF The Business Case for Behavioral Health Care

    The Business Case Equation for BH Integration: S+I+T ≤ X+ P+ R. The basic business case formula for any service is that cost must be less than revenue. For behavioral health integration this translates to the following: Cost of Screening (S) + Cost of Intervention Services (I)

  12. Developing a Business Plan for Your Behavioral Health Practice

    Developing a Business Plan for Your Behavioral Health Practice To compare a private behavioral health practice to a retail store might seem like an awkward juxtaposition to some. After all, a retail consumer and a client suffering from mental illness have two distinct sets of needs that have little in common.

  13. 9+ SAMPLE Mental Health Business Plan in PDF

    What is a mental health business plan? A mental health business plan pertains to the written document regarding a mental health facility's core objectives, methodologies, overall structure, and plan to achieve the goals it has set for itself. It is basically the blueprint for a clinic that aims to target mental health issues. Having a business plan is very important because it serves as a ...

  14. Business Entrepreneurship: The Integrated Behavioral Health Business Plan

    This chapter is focused on the competencies necessary to write an integrated behavioral health business plan. These competencies include identifying opportunities and resources, creating strategies to demonstrate the value of integrated behavioral health, and how to promote the business plan via presentations to senior leadership.

  15. Health Plan Perspectives: Evolving to the Next Generation of Behavioral

    A notable example of health plan commitment to improving behavioral health outcomes at a local level can be seen through Blue Shield of California's recent launch of the BlueSky initiative, a multi-year, statewide campaign to improve awareness of and access to mental health resources for middle and high school students in California.The initiative commits to providing Youth Mental Health ...

  16. Behavioral Health Business: News and Insights for Executives

    ONC, SAMHSA Team Up on $20M Behavioral Health IT Initiative. February 9, 2024. Behavioral Health Business (BHB) is an independent source for breaking news and up-to-date information on the mental health and addiction recovery industry.

  17. About

    Behavioral Health Business. 1 S. Dearborn Street, 20th Floor. Chicago, IL 60603. Phone: 312-281-8802. Email: [email protected]. Behavioral Health Business (BHB) is an independent source for breaking news and up-to-date information on the mental health and addiction recovery.

  18. Community-based mental health services in Russia: past, present, and

    Historically, outpatient psychiatry in Russia set the same values and goals that are currently included in the European Mental Health Action Plan (2013-20)1 and, since they were started, the community-based services were developed as highly resourced settings (ie, specialised services dedicated to specific patient groups with a variety of forms of medical care).2 The first community-based ...

  19. 5 Mental Health Companies to Watch in 2024

    Read on for the five mental health companies Behavioral Health Business will be watching in 2024. Advertisement. Partnerships a golden opportunity: Brightline . Virtual pediatric behavioral health provider Brightline has had quite the start to 2024. In January, it announced that it had inked a deal with the state of California to provide ...

  20. Strategies to Improve Your Mental Health Business

    Providing excellent clinical care is your top priority, but you are also a business owner, and that means you should always be looking for ways to improve the profitability of your mental health practice. There are four primary ways to increase your profitability: 1) Increase the number of patients you see. 2) Increase the productivity of your ...

  21. Human Resources 101: Getting Started in Your Behavioral Health Business

    Here are the basics you should know about establishing HR functions in your new behavioral health business. Create an HR plan. The first important step in setting up your HR is to create a strategy to help guide future HR decisions. While this plan will differ from one business to another, some general things to consider include: ...

  22. Moscow Office

    Mental Health Services - Adult & Children. 208-882-0562. View Details. Mental Health Services After Hours Crisis Line - Adult & Children. 988. Navigation Services. 800-926-2588. Nursing Home Services. 866-255-1190.

  23. What's next for Wichita health campus after ...

    For several years, Jeff Lange and his family pursued the idea of a large behavioral health campus at Meridian and MacArthur in Lange's Crossgate District. Then, in 2023, the master plan for the 70 ...

  24. LATAH COUNTY COMMISSION: Candidates emphasize tax relief, mental health

    Nov 2, 2022 Updated Nov 7, 2022. Tax relief and addressing mental health needs in the community are among the top priorities for two candidates running for Latah County Commissioner. The eight ...

  25. Niagara Falls hospital expands, renovates behavioral health ER

    The facility's behavioral health emergency room, a 24/7 operation, sees about 200 patients a month, Burgess said. The behavioral health emergency room has 12 full-time-equivalent positions ...

  26. Moscow awards ARPA grants to businesses

    Apr 5, 2022. The Moscow City Council on Monday voted to award American Rescue Plan Act money to three local businesses affected by COVID-19, and will explore expanding the amount of money ...