Behavioral Health Feasibility Study for Expanding or Starting New Psychiatric Services

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 Feasibility Studies include a market analyses, assess regulations, study reimbursements, identify provider and staff resources, and develop a real world financial pro forma for a new or expanded psychiatric service.

Behavioral Health Feasibility Study for expanding or starting new psychiatric Programs

Behavioral Health Feasibility Study Consulting Firm

For more than 20 years, we have completed feasibility studies tailored to the specific needs of hospitals and behavioral health care delivery systems. We provide our clients with 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) and the Centers for Disease Control and Prevention (CDC). Aside from that, we have completed feasibility studies and Certificates of Need research for new psychiatric hospitals and inpatient units as well as specialty behavioral health programs such as geriatric services and complex medical mental health units. 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.