Behavioral Health Feasibility Study for Expanding or Starting New Psychiatric Services

We conduct Behavioral Health Feasibility Studies to determine the need for new or expanded psychiatric programs. Feasibility studies assess the market need as well as financial, regulatory and clinical viability of new mental health or substance abuse treatment programs. We use proprietary market, utilization, and financial data to forecast demand.

Hospitals and healthcare systems use our Feasibility Studies to make psychiatric facility development decisions based on real world business criteria.

Behavioral Health Feasibility Study for expanding or starting new psychiatric Programs

We conduct Behavioral Health Feasibility Studies to determine the of new or expanded psychiatric programs. Feasibility studies assess the market as well as business, regulatory and clinical viability of mental health and substance abuse treatment programs. We use proprietary market, utilization, and financial data to forecast demand.

Our Psychiatric Hospital Feasibility Studies include a market analyses, assess regulations, study reimbursements, identify provider and staff resources, and develop a real world financial pro forma.

Behavioral Health Feasibility Study Consulting Firm

For almost 30 years, we have completed feasibility studies tailored to the specific needs of hospitals and behavioral health care delivery systems. We provide our clients with demand studies, analyses, projections, and financial forecasts to help them make informed decisions and develop business plans.

Our research involves federal resources and proprietary databases from trusted sources including Substance Abuse and Mental Health Services Administration (SAMHSA), the National Institute of Mental Health (NIMH), National Institute on Drug Abuse, the Centers for Disease Control and Prevention (CDC), and the Agency for Healthcare Research and Quality (AHRQ).

We have collaborated on developing Certificates of Need for new psychiatric hospitals and inpatient units as well as specialty behavioral health programs. When conducting feasibility studies, we often consider:

  • Projected Need (Volume Demand Over Time and Number of Beds)
  • Population/Patient Demographics
  • Market Position, Competitors, Market Penetration
  • Financial Forecast, Scenarios, and Assumptions:
  • Payer Mix
  • Expected Profit and Loss/Breakeven
  • Capital Costs
  • Revenue Cycle, Billing, Collections
  • Physical Plant/Safety Modifications
  • Technology Needs
  • Availability of Medical Staff, Psychiatrists, Nurses, Support Staffing
  • Program Model, Sub-Specialties Tracks/Services
  • Care Coordination and Client Throughput
  • Regulations, CMS Compliance, State Licensing, Policies, and Procedures
  • Business and Referral Development
  • Partnership and Alliances
  • Political Environment

When the study indicates a strong opportunity, we will work with you to develop a management action plan that meets your needs. Through the MAP, we will outline timeframes, responsibilities, and steps to goal accomplishment.

Psychiatric Hospital Feasibility Studies

Our behavioral health business consultant services involve feasibility studies that assess the viability of new or expanded mental health and substance abuse treatment programs. To ensure that every factor is considered, we employ a detailed analysis of the market, future utilization, demographics, regulations, payer mix, financial drivers, and profit margins.

Facility Startup Assistance

You can turn to us for startup implementation assistance or interim management for a new hospital-based psychiatric inpatient or residential program. We will guide you throughout the process.

Certificate of Need Preparation

Where state approval is required for new or expanded psychiatric facilities, our behavioral health business consultants can help you complete the Certificate of Need (CON). Prior to initiating projects, owners and sponsors are required to prepare a CON to secure state approval.

Our leadership’s extensive experience in the industry brings real-world knowledge to guide you through the CON preparation process. We address each state’s key criteria that typically include:

  • The relationship of the psychiatric facility project to the state health care plan
  • The need for enhanced or added psychiatric beds or facilities to serve the population of an area
  • The extent to which the added psychiatric facility is accessible to all residents in the region
  • The short- and long-term economic impact and financial feasibility of the project

Recent Projects With Feasibility Studies

  • New 30-bed inpatient psychiatric unit feasibility study for a hospital system
  • Feasibility study and demand analysis for new community medical clinic serving developmentally disabled adults in Nevada
  • Feasibility study to privatize and operate a government-run psychiatric outpatient and partial hospital service for a university medical school’s department of psychiatry

Seek Our Advice

We aim to fill a gap in the field of behavioral health care, which is why we focus our resources on improving various psychiatric programs nationwide. Today, we have developed a deep understanding of the specific issues, challenges, and regulations involved in running a psychiatric service. We use that knowledge to serve our clients effectively. For more information about our services, talk to us.