Examples

Mental Health Business Plan

mental health hospital business plan

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.

Mental Health Business Plan Template

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2. Business Plan for Mental Health

Business Plan for Mental Health

Size: 90 KB

3. Mental Health Small Business Plan

Mental Health Small Business Plan

4. Standard Mental Health Business Plan

Standard-Mental-Health-Business-Plan1

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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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.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

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.

Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $400
Insurance $500
Rent $900
Redecorating and signage $2,500
Staff Training $2,000
Other $700
Total Start-up Expenses $9,000
Start-up Assets
Cash Required $101,000
Other Current Assets $5,000
Long-term Assets $0
Total Assets $106,000
Total Requirements $115,000
Start-up Funding
Start-up Expenses to Fund $9,000
Start-up Assets to Fund $106,000
Total Funding Required $115,000
Assets
Non-cash Assets from Start-up $5,000
Cash Requirements from Start-up $101,000
Additional Cash Raised $0
Cash Balance on Starting Date $101,000
Total Assets $106,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $50,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $50,000
Capital
Planned Investment
Direct Owner Investment $65,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $65,000
Loss at Start-up (Start-up Expenses) ($9,000)
Total Capital $56,000
Total Capital and Liabilities $106,000
Total Funding $115,000

Pro Tip:

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

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:

1.

    Physicians

Professionalism

    Hospitals Consultation
    Schools Correspondence
    Agencies Accessibility
2.   

    Individuals 

Accessibility
    Couples Respect
    Families Compassion
    Groups  Empathy
3.
    MCO’s Clear communication
    Self-pay Cost-effective care
    Agencies Easy access for clients 
    PPOs Shared treatment philosophy 
    Indemnity Program Responsiveness and cooperation
4.
    Billing/Collectable Cooperative working relationship
    Legal Timely payment facility owner  
    Human Resource Respect
    Insurance

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
  • 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

c. Potential Impact of Strengths:

  • 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

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Psychotherapy 6% 5,784 6,793 7,374 7,846 8,348 9.61%
Psychopharmacology 0% 3,911 5,184 6,282 6,282 6,282 12.58%
IOP 0% 898 898 988 988 988 2.42%
B H Contracts 5% 0 0 2,000 2,000 2,000 0.00%
Other 0% 0 0 0 0 0 0.00%
Total 13.56% 10,593 12,875 16,644 17,116 17,618 13.56%

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

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Psychotherapy 5,784 6,792 7,374
Psychopharmacology/MD 2,520 3,264 3,950
Psychopharmacology/CNS 1,391 1,920 2,332
Addictions/3 hr IOP 310 310 450
Addictions/1hr IOP 588 588 538
Contracts 0 0 2,000
Other 0 0 0
Total Unit Sales 10,593 12,874 16,644
Unit Prices Year 1 Year 2 Year 3
Psychotherapy $59.52 $59.52 $59.52
Psychopharmacology/MD $40.92 $40.92 $40.92
Psychopharmacology/CNS $32.55 $32.55 $32.55
Addictions/3 hr IOP $77.19 $77.19 $77.19
Addictions/1hr IOP $22.32 $22.32 $22.32
Contracts $0.00 $0.00 $59.52
Other $0.00 $0.00 $0.00
Sales
Psychotherapy $344,264 $404,260 $438,900
Psychopharmacology/MD $103,118 $133,563 $161,634
Psychopharmacology/CNS $45,277 $62,496 $75,907
Addictions/3 hr IOP $23,929 $23,929 $34,736
Addictions/1hr IOP $13,124 $13,124 $12,008
Contracts $0 $0 $119,040
Other $0 $0 $0
Total Sales $529,712 $637,372 $842,225
Direct Unit Costs Year 1 Year 2 Year 3
Psychotherapy $35.71 $35.71 $35.71
Psychopharmacology/MD $28.64 $28.64 $28.64
Psychopharmacology/CNS $19.53 $19.53 $19.53
Addictions/3 hr IOP $13.12 $27.02 $27.02
Addictions/1hr IOP $4.91 $6.47 $6.47
Contracts $0.00 $0.00 $35.71
Other $0.00 $0.00 $0.00
Direct Cost of Sales
Psychotherapy $206,558 $242,542 $263,326
Psychopharmacology/MD $72,183 $93,481 $113,128
Psychopharmacology/CNS $27,166 $37,498 $45,544
Addictions/3 hr IOP $4,068 $8,376 $12,159
Addictions/1hr IOP $2,887 $3,804 $3,481
Contracts $0 $0 $71,420
Other $0 $0 $0
Subtotal Direct Cost of Sales $312,863 $385,701 $509,057

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:

Amesbury Psychological Center

 

 

Organizational Chart

 

ADVISORY  BOARD

CENTER DIRECTOR

CONSULTANTS

SUPPORT STAFF

ASSOCIATES

MEDICAL DIRECTOR

 

MEDICAL STAFF

 

 

THERAPISTS

 

 

ADDICTION STAFF

 

 

CONTRACTS STAFF

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.

Personnel Plan
Year 1 Year 2 Year 3
Center Director (.75 FTE) $41,244 $42,481 $43,755
Client Accounts Coord. (.75 FTE) $23,244 $23,941 $24,659
Secretary/Recep (1 FTE) $24,000 $24,720 $25,462
Receptionist (.50 FTE) $11,256 $11,594 $12,302
Total People 4 4 4
Total Payroll $99,744 $102,736 $106,178

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.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 9.75% 9.75% 9.75%
Long-term Interest Rate 9.75% 9.75% 9.75%
Tax Rate 2.50% 0.00% 2.50%
Other 0 0 0

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

Break-even Analysis
Monthly Units Break-even 752
Monthly Revenue Break-even $37,618
Assumptions:
Average Per-Unit Revenue $50.01
Average Per-Unit Variable Cost $29.53
Estimated Monthly Fixed Cost $15,400

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

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $529,712 $637,372 $842,225
Direct Cost of Sales $312,863 $385,701 $509,057
Other $0 $0 $0
Total Cost of Sales $312,863 $385,701 $509,057
Gross Margin $216,850 $251,670 $333,167
Gross Margin % 40.94% 39.49% 39.56%
Expenses
Payroll $99,744 $102,736 $106,178
Marketing/Promotion $7,700 $10,500 $11,100
Depreciation $0 $0 $0
Leased Equipment $3,000 $3,000 $3,500
Billing Fees (6% of billed plus 1.5% copays) $22,951 $31,869 $42,111
Insurance $3,500 $3,600 $3,600
Rent $10,992 $11,000 $26,400
Human Resource/HR Logic $6,000 $6,000 $6,000
Med Dir.,Multidisc.,RNCS Sup. $10,000 $12,000 $12,000
Telephone $6,000 $6,500 $7,000
Postage $1,050 $1,300 $1,400
Office Supplies $3,860 $4,110 $4,200
Payroll Taxes $0 $0 $0
Contract/Consultants $10,000 $10,000 $10,000
Total Operating Expenses $184,797 $202,615 $233,489
Profit Before Interest and Taxes $32,053 $49,055 $99,678
EBITDA $32,053 $49,055 $99,678
Interest Expense $4,400 $3,436 $2,260
Taxes Incurred $1,103 $0 $2,435
Net Profit $26,550 $45,619 $94,983
Net Profit/Sales 5.01% 7.16% 11.28%

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

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $52,971 $63,737 $84,222
Cash from Receivables $356,266 $557,202 $724,642
Subtotal Cash from Operations $409,237 $620,940 $808,864
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $409,237 $620,940 $808,864
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $99,744 $102,736 $106,178
Bill Payments $369,968 $482,273 $628,567
Subtotal Spent on Operations $469,712 $585,010 $734,744
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $9,000 $11,515 $12,620
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $478,712 $596,525 $747,364
Net Cash Flow ($69,475) $24,415 $61,500
Cash Balance $31,525 $55,940 $117,439

7.6 Projected Balance Sheet

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

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $31,525 $55,940 $117,439
Accounts Receivable $120,475 $136,908 $170,268
Other Current Assets $5,000 $5,000 $5,000
Total Current Assets $157,000 $197,847 $292,708
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $157,000 $197,847 $292,708
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $33,450 $40,193 $52,690
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $33,450 $40,193 $52,690
Long-term Liabilities $41,000 $29,485 $16,865
Total Liabilities $74,450 $69,678 $69,555
Paid-in Capital $65,000 $65,000 $65,000
Retained Earnings ($9,000) $17,550 $63,169
Earnings $26,550 $45,619 $94,983
Total Capital $82,550 $128,169 $223,153
Total Liabilities and Capital $157,000 $197,847 $292,708
Net Worth $82,550 $128,169 $223,153

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.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 20.32% 32.14% 2.30%
Percent of Total Assets
Accounts Receivable 76.74% 69.20% 58.17% 25.20%
Other Current Assets 3.18% 2.53% 1.71% 33.00%
Total Current Assets 100.00% 100.00% 100.00% 60.00%
Long-term Assets 0.00% 0.00% 0.00% 40.00%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 21.31% 20.32% 18.00% 23.10%
Long-term Liabilities 26.11% 14.90% 5.76% 19.60%
Total Liabilities 47.42% 35.22% 23.76% 42.70%
Net Worth 52.58% 64.78% 76.24% 57.30%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 40.94% 39.49% 39.56% 0.00%
Selling, General & Administrative Expenses 39.65% 36.14% 32.27% 73.80%
Advertising Expenses 0.00% 0.00% 0.00% 0.40%
Profit Before Interest and Taxes 6.05% 7.70% 11.84% 8.90%
Main Ratios
Current 4.69 4.92 5.56 2.45
Quick 4.69 4.92 5.56 1.95
Total Debt to Total Assets 47.42% 35.22% 23.76% 42.70%
Pre-tax Return on Net Worth 33.50% 35.59% 43.66% 8.10%
Pre-tax Return on Assets 17.61% 23.06% 33.28% 14.20%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 5.01% 7.16% 11.28% n.a
Return on Equity 32.16% 35.59% 42.56% n.a
Activity Ratios
Accounts Receivable Turnover 3.96 4.19 4.45 n.a
Collection Days 83 82 74 n.a
Accounts Payable Turnover 12.06 12.17 12.17 n.a
Payment Days 27 27 26 n.a
Total Asset Turnover 3.37 3.22 2.88 n.a
Debt Ratios
Debt to Net Worth 0.90 0.54 0.31 n.a
Current Liab. to Liab. 0.45 0.58 0.76 n.a
Liquidity Ratios
Net Working Capital $123,550 $157,654 $240,018 n.a
Interest Coverage 7.29 14.28 44.11 n.a
Additional Ratios
Assets to Sales 0.30 0.31 0.35 n.a
Current Debt/Total Assets 21% 20% 18% n.a
Acid Test 1.09 1.52 2.32 n.a
Sales/Net Worth 6.42 4.97 3.77 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Psychotherapy 0% 482 482 482 482 482 482 482 482 482 482 482 482
Psychopharmacology/MD 0% 210 210 210 210 210 210 210 210 210 210 210 210
Psychopharmacology/CNS 0% 86 86 86 86 86 86 146 146 146 146 146 146
Addictions/3 hr IOP 0% 26 26 26 26 26 26 26 26 26 26 26 26
Addictions/1hr IOP 0% 49 49 49 49 49 49 49 49 49 49 49 49
Contracts 0% 0 0 0 0 0 0 0 0 0 0 0 0
Other 0% 0 0 0 0 0 0 0 0 0 0 0 0
Total Unit Sales 853 853 853 853 853 853 913 913 913 913 913 913
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Psychotherapy $64.00 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52 $59.52
Psychopharmacology/MD $44.00 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92 $40.92
Psychopharmacology/CNS $35.00 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55 $32.55
Addictions/3 hr IOP $83.00 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19 $77.19
Addictions/1hr IOP $24.00 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32 $22.32
Contracts $64.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales
Psychotherapy $28,689 $28,689 $28,689 $28,689 $28,689 $28,689 $28,689 $28,689 $28,689 $28,689 $28,689 $28,689
Psychopharmacology/MD $8,593 $8,593 $8,593 $8,593 $8,593 $8,593 $8,593 $8,593 $8,593 $8,593 $8,593 $8,593
Psychopharmacology/CNS $2,794 $2,794 $2,794 $2,794 $2,794 $2,794 $4,752 $4,752 $4,752 $4,752 $4,752 $4,752
Addictions/3 hr IOP $1,994 $1,994 $1,994 $1,994 $1,994 $1,994 $1,994 $1,994 $1,994 $1,994 $1,994 $1,994
Addictions/1hr IOP $1,094 $1,094 $1,094 $1,094 $1,094 $1,094 $1,094 $1,094 $1,094 $1,094 $1,094 $1,094
Contracts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales $43,163 $43,163 $43,163 $43,163 $43,163 $43,163 $45,122 $45,122 $45,122 $45,122 $45,122 $45,122
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Psychotherapy 60.00% $35.71 $35.71 $35.71 $35.71 $35.71 $35.71 $35.71 $35.71 $35.71 $35.71 $35.71 $35.71
Psychopharmacology/MD 70.00% $28.64 $28.64 $28.64 $28.64 $28.64 $28.64 $28.64 $28.64 $28.64 $28.64 $28.64 $28.64
Psychopharmacology/CNS 60.00% $19.53 $19.53 $19.53 $19.53 $19.53 $19.53 $19.53 $19.53 $19.53 $19.53 $19.53 $19.53
Addictions/3 hr IOP 17.00% $13.12 $13.12 $13.12 $13.12 $13.12 $13.12 $13.12 $13.12 $13.12 $13.12 $13.12 $13.12
Addictions/1hr IOP 22.00% $4.91 $4.91 $4.91 $4.91 $4.91 $4.91 $4.91 $4.91 $4.91 $4.91 $4.91 $4.91
Contracts 60.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Other 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales
Psychotherapy $17,213 $17,213 $17,213 $17,213 $17,213 $17,213 $17,213 $17,213 $17,213 $17,213 $17,213 $17,213
Psychopharmacology/MD $6,015 $6,015 $6,015 $6,015 $6,015 $6,015 $6,015 $6,015 $6,015 $6,015 $6,015 $6,015
Psychopharmacology/CNS $1,676 $1,676 $1,676 $1,676 $1,676 $1,676 $2,851 $2,851 $2,851 $2,851 $2,851 $2,851
Addictions/3 hr IOP $339 $339 $339 $339 $339 $339 $339 $339 $339 $339 $339 $339
Addictions/1hr IOP $241 $241 $241 $241 $241 $241 $241 $241 $241 $241 $241 $241
Contracts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $25,484 $25,484 $25,484 $25,484 $25,484 $25,484 $26,659 $26,659 $26,659 $26,659 $26,659 $26,659
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75%
Long-term Interest Rate 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75% 9.75%
Tax Rate 30.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $43,163 $43,163 $43,163 $43,163 $43,163 $43,163 $45,122 $45,122 $45,122 $45,122 $45,122 $45,122
Direct Cost of Sales $25,484 $25,484 $25,484 $25,484 $25,484 $25,484 $26,659 $26,659 $26,659 $26,659 $26,659 $26,659
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $25,484 $25,484 $25,484 $25,484 $25,484 $25,484 $26,659 $26,659 $26,659 $26,659 $26,659 $26,659
Gross Margin $17,679 $17,679 $17,679 $17,679 $17,679 $17,679 $18,462 $18,462 $18,462 $18,462 $18,462 $18,462
Gross Margin % 40.96% 40.96% 40.96% 40.96% 40.96% 40.96% 40.92% 40.92% 40.92% 40.92% 40.92% 40.92%
Expenses
Payroll $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312
Marketing/Promotion $675 $675 $675 $675 $675 $625 $625 $625 $625 $625 $625 $575
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Billing Fees (6% of billed plus 1.5% copays) $53 $665 $1,685 $2,093 $2,096 $2,104 $2,131 $2,174 $2,217 $2,385 $2,628 $2,720
Insurance $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $200
Rent $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $916 $916
Human Resource/HR Logic $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Med Dir.,Multidisc.,RNCS Sup. $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833
Telephone $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Postage $100 $100 $100 $100 $100 $100 $100 $100 $100 $50 $50 $50
Office Supplies $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $330 $230
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contract/Consultants $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $837
Total Operating Expenses $13,602 $14,214 $15,234 $15,642 $15,645 $15,603 $15,630 $15,673 $15,716 $15,834 $16,077 $15,923
Profit Before Interest and Taxes $4,077 $3,465 $2,445 $2,037 $2,034 $2,076 $2,832 $2,789 $2,746 $2,628 $2,385 $2,539
EBITDA $4,077 $3,465 $2,445 $2,037 $2,034 $2,076 $2,832 $2,789 $2,746 $2,628 $2,385 $2,539
Interest Expense $400 $394 $388 $382 $376 $370 $364 $358 $351 $345 $339 $333
Taxes Incurred $1,103 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit $2,574 $3,071 $2,057 $1,655 $1,658 $1,706 $2,469 $2,432 $2,395 $2,283 $2,046 $2,206
Net Profit/Sales 5.96% 7.11% 4.77% 3.83% 3.84% 3.95% 5.47% 5.39% 5.31% 5.06% 4.53% 4.89%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $4,316 $4,316 $4,316 $4,316 $4,316 $4,316 $4,512 $4,512 $4,512 $4,512 $4,512 $4,512
Cash from Receivables $0 $0 $1,295 $38,847 $38,847 $38,847 $38,847 $38,847 $38,906 $40,610 $40,610 $40,610
Subtotal Cash from Operations $4,316 $4,316 $5,611 $43,163 $43,163 $43,163 $43,359 $43,359 $43,418 $45,122 $45,122 $45,122
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $4,316 $4,316 $5,611 $43,163 $43,163 $43,163 $43,359 $43,359 $43,418 $45,122 $45,122 $45,122
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312 $8,312
Bill Payments $1,076 $32,261 $31,815 $32,808 $33,196 $33,192 $33,185 $34,343 $34,379 $34,419 $34,535 $34,759
Subtotal Spent on Operations $9,388 $40,573 $40,127 $41,120 $41,508 $41,504 $41,497 $42,655 $42,691 $42,731 $42,847 $43,071
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750 $750
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $10,138 $41,323 $40,877 $41,870 $42,258 $42,254 $42,247 $43,405 $43,441 $43,481 $43,597 $43,821
Net Cash Flow ($5,822) ($37,007) ($35,265) $1,293 $905 $910 $1,112 ($45) ($23) $1,641 $1,525 $1,301
Cash Balance $95,178 $58,172 $22,906 $24,200 $25,105 $26,014 $27,126 $27,081 $27,058 $28,699 $30,224 $31,525
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $101,000 $95,178 $58,172 $22,906 $24,200 $25,105 $26,014 $27,126 $27,081 $27,058 $28,699 $30,224 $31,525
Accounts Receivable $0 $38,847 $77,694 $115,246 $115,246 $115,246 $115,246 $117,009 $118,772 $120,475 $120,475 $120,475 $120,475
Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Total Current Assets $106,000 $139,026 $140,866 $143,153 $144,446 $145,351 $146,261 $149,135 $150,853 $152,533 $154,174 $155,699 $157,000
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $106,000 $139,026 $140,866 $143,153 $144,446 $145,351 $146,261 $149,135 $150,853 $152,533 $154,174 $155,699 $157,000
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $31,202 $30,721 $31,701 $32,090 $32,087 $32,041 $33,197 $33,232 $33,268 $33,376 $33,605 $33,450
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $31,202 $30,721 $31,701 $32,090 $32,087 $32,041 $33,197 $33,232 $33,268 $33,376 $33,605 $33,450
Long-term Liabilities $50,000 $49,250 $48,500 $47,750 $47,000 $46,250 $45,500 $44,750 $44,000 $43,250 $42,500 $41,750 $41,000
Total Liabilities $50,000 $80,452 $79,221 $79,451 $79,090 $78,337 $77,541 $77,947 $77,232 $76,518 $75,876 $75,355 $74,450
Paid-in Capital $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Retained Earnings ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000) ($9,000)
Earnings $0 $2,574 $5,644 $7,701 $9,356 $11,014 $12,720 $15,189 $17,620 $20,015 $22,298 $24,344 $26,550
Total Capital $56,000 $58,574 $61,644 $63,701 $65,356 $67,014 $68,720 $71,189 $73,620 $76,015 $78,298 $80,344 $82,550
Total Liabilities and Capital $106,000 $139,026 $140,866 $143,153 $144,446 $145,351 $146,261 $149,135 $150,853 $152,533 $154,174 $155,699 $157,000
Net Worth $56,000 $58,574 $61,644 $63,701 $65,356 $67,014 $68,720 $71,189 $73,620 $76,015 $78,298 $80,344 $82,550

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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 Mental Health Private Practice 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 for a Mental Health Private Practice

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.

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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.

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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.

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How to Create a Business Plan for Your Behavioral Health Practice

When opening your own behavioral health practice, your business plan can make or break your practice. From your clinical approach to your administrative operations, a business plan should guide your decision-making in all aspects of your practice. Here’s how to get started:

Start small and go slow.

Launching your behavioral health practice is exciting, but shouldn’t be rushed. Start creating your business plan with a simple list, or search online for a business plan template to provide a little more structure. Explore other practices to get some ideas and decide how you may (or may not) want to organize your own practice. Network with other behavioral health professionals, or consider taking local or online business classes or tutorials on different aspects of business ownership.

Plan your general business operations.

No matter the industry, every business plan should include several common elements: • What products or services you offer • Your legal structure ( sole proprietorship, an LLC, or an S corporation ) • What other employees or partners you may hire • How you will market your business • What makes you different from competitors • Your business goals and how you will measure success • Obtaining additional financing, if necessary • How to handle accounting • What federal, state, or local licensing or permits are required • What insurance (payroll, liability, etc.) is needed • Your mission statement

Include the clinical aspect of your business.

Your business plan should also address questions unique to a behavioral health practice, including: • Who are your clients (including age groups, demographics, or conditions)? • Will you rent or buy a space, or work out of your home? • What therapeutic approaches will you use? • Do you need additional education or training? • Will you partner or collaborate with other behavioral health providers, social service organizations, or hospitals? • Will you offer telehealth? • How will you handle documentation and client data? • Will you use software solutions, such as accounting or an EHR? • What will your rates and payment options be? What insurance will you accept? • Will you join a referral network? • How will you bill clients? How will you handle late or missed payments? • What will your scheduling process be like? • How will you handle a client that is not a good fit? • Will you work with an accountant or an attorney?

Make your business plan your own.

You can personalize your business plan to address your personal work and productivity style. This part might help guide decisions like: • Establishing and maintaining boundaries with clients • When you will take lunch breaks • Whether you have a mentor you can consult • How much time you need between client sessions • How you will stay motivated and disciplined • How to respond to serious, negative feedback • How much time you will dedicate to administrative tasks and how much on clinical tasks The benefit of running your own practice is having the flexibility to change your operations. If you want to change your accounting software, marketing style, or work hours, you can! Your business plan should grow and evolve with you and your practice, so don’t worry about getting it perfect right away. Your behavioral health business plan should address the type of software you use to make things easier for you. BestNotes EHR and CRM solutions , created for behavioral health and addiction treatment providers, can help you start your practice on the right track. Contact us today to learn more !

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Home > Blog > Mental Health Private Practice Business Plan PDF Template

mental health hospital business plan

Mental Health Private Practice Business Plan PDF Template

Courtney Gardner, MSW

mental health hospital business plan

Hate writing progress notes? Join thousands of happy therapists using Mentalyc AI.

Turning Your Passion Into a Business: Creating a Counseling Private Practice Business Plan

As a therapist, you have already gained a wealth of experience and knowledge in helping people overcome their mental health challenges. Opening your private practice is the next logical step in your career progression. However, being your own boss means that you will have to manage various aspects of your practice, such as finances, marketing, and administration. You must have a well-structured business plan to ensure that your practice thrives and you can provide the best possible care for your clients. This article will help you identify your goals , target market, and strategies for growth and enable you to make informed decisions on how to run your practice sustainably and successfully.

What is a Private Practice Business Plan and Why do You Need One?

Owning your practice is attractive for many reasons. However, developing a solid business plan is essential before taking the plunge. A business plan for a therapy practice outlines your vision for the practice and how you plan to achieve it. It helps to ensure that you have  considered all necessary details  and are ready for any challenges. Without a comprehensive business plan, you could quickly become overwhelmed, underfunded, and struggle to keep your practice running.

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A well-crafted business plan will guide you through obstacles and help ensure the success of your private practice. Although it requires a lot of effort upfront, it provides you with a roadmap to follow and the assurance that you are ready for this new venture. With passion, planning, and persistence, you'll be on the right track to turning your vision into reality.

Creating a Compelling Business Description and Service Offerings

Your business description and services are vital for attracting clients. Make sure to explain precisely what you do in a simple yet engaging way. When highlighting your services, focus on the key elements defining your practice while appealing to your ideal clients. Being authentic and letting your passion for the work shine through is indispensable. Remember, your business description is your chance to connect with potential clients, so speak with empathy, warmth, and care directly to them.

Finding Funding Sources and Estimating Costs for Your Mental Health Private Practice

Funding a new private practice can be challenging , but options are available if you do your research. As a therapist, your passion is to help people rather than to handle numbers and finances. However, to turn your passion into a sustainable business, you must consider the costs of starting and keeping your practice running.

mental health hospital business plan

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A solid business plan should include a financial plan that estimates your expenses. Some costs to account for include:

  • Rent for office space. Get estimates from commercial realtors on average rates in your area—factor in additional expenses like utilities.
  • Equipment like a desk, chairs, a laptop, and a phone system. Price out options to determine a budget.
  • Marketing materials include a website, business cards, and advertising. Estimate costs for an essential website and 500 business cards to start.
  • Licenses and insurance. Research the fees in your state for business licenses, liability insurance, and malpractice insurance.
  • Employees. Calculate their salary and benefits costs if hiring other therapists or support staff.
  • Miscellaneous. Leave room in your budget for unforeseen costs like office supplies, accounting services, and legal fees.

With those estimates in hand, you should explore various funding options. You may finance costs, take out a small business loan, get a line of credit, crowdfund, or search for grants available for therapists and counselors. It is crucial to compare rates and terms from different sources to find the best solution for your needs.

A financial plan and securing funding are two essential steps in turning your passion into a sustainable private practice. You should do your homework, get multiple estimates, build a buffer for unexpected costs, and explore all options for financing your dream. With a thoughtful budget and funding, you will be ready to confidently open your doors and start helping your clients from day one.

mental health hospital business plan

Increase your practice's revenue and reduce therapist burnout

Critical elements of a successful counseling private practice business plan.

You should include the following crucial elements to create a successful business plan for a mental healthcare private practice:

Mission Statement

A mission statement is essential to defining the purpose and values underpinning your practice. It is a powerful tool to articulate your vision and communicate your practice's core beliefs to your stakeholders. A well-crafted mission statement can help you stay focused on your goals and guide you toward making decisions that align with your values.

For example, your mission statement could be:

  • To provide empathetic counseling and therapy services for individuals and families in our community.
  • To offer compassionate, client-centered mental health services to help individuals live their happiest, healthiest lives.
  • To deliver comprehensive mental health services to help clients overcome life's challenges and thrive.

mental health hospital business plan

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Business description.

The business description section is vital to your website or marketing materials. It concisely summarizes your practice, target clients, and your services. This is your chance to highlight your experience, qualifications, and what makes your business unique. It's essential to mention all the different services and approaches you offer to provide potential clients with a clear understanding of what you can provide. You should also specify the type of therapy or counseling you provide, such as individual, couples, family, or group therapy.

For instance:

  • I offer counseling and therapy services to adults, teenagers, and children struggling with anxiety and depression. My integrative approach combines cognitive behavioral therapy, mindfulness practices, and a holistic view of wellness.
  • I specialize in helping busy professionals and parents navigate life's stresses and reconnect with their purpose and priorities.

Financial Plan

Your financial plan will detail your startup costs, operating expenses, revenue projections, and how you'll finance your business. Estimate costs for insurance, marketing, and supplies. Project potential income from clients at your desired caseload and fee. Look into small business loans, crowdfunding, personal savings, or investor funding.

Operational Details

Include business logistics, including your business structure (LLC, corporation), location, equipment, marketing plans, partnerships, employees, and licensing/certification needs.

Market Analysis

Before starting your therapy practice, conducting a market analysis to determine your fees is essential. You can research your target market and competitors to assess demand and determine competitive advantages. Additionally, you can investigate what other local therapists are charging to set your fees at a reasonable and competitive level.

Competitive Advantage

In your business plan, it is essential to include a section that outlines your competitive advantage. This will help you identify what distinguishes you from other therapists. In this section, describe what makes you unique, such as your experience, credentials, treatment approach, or niche.

For example:

  • Utilizing an innovative, trauma-informed methodology, I have helped clients overcome trauma for over ten years.
  • I have a master's in social work, am a licensed clinical social worker, and have twenty years of experience helping clients using a mindfulness-based, solution-focused approach.
  • My goal is to provide a safe, compassionate space where you can gain insight into yourself and your relationships, reduce symptoms of anxiety and depression, set healthy boundaries, improve communication, and find greater peace and fulfillment.

Financial Projections

To plan for the next three to five years, you should create financial documents such as income statements, balance sheets, and cash flow statements. Consider using key metrics and ratios to track your business's performance. Remember to factor in costs like rent, insurance, marketing, and your salary. If your revenue initially falls short, you should explore options like small business loans or lines of credit to help fund your business.

Avoiding Common Mistakes and Ensuring a Competitive Advantage

Creating a business plan that avoids common errors and establishes a competitive edge is imperative to develop a thriving private practice. You can accomplish this with careful planning and preparation. By anticipating potential obstacles and planning for lasting expansion, you can position your business for sustainable success.

Some of the significant mistakes to avoid include:

  • Not having a business plan at all . Without a roadmap for your business, you'll struggle to secure funding or make critical strategic decisions. Sit down and create a comprehensive plan, even if you have to start small. You can always revise it later.
  • Underestimating costs . It's easy to overlook expenses when you're passionate about your work. Do thorough research on the costs of renting office space, insurance, marketing, and other necessities. Build financial projections that account for both fixed and variable costs.
  • Lacking a competitive advantage . What makes your practice unique? Maybe you specialize in a niche treatment area or offer flexible hours and payment options. Identify what sets you apart and makes you the best choice for clients. Promote this advantage in your marketing.
  • Neglecting marketing . Don't expect clients to appear magically. You must actively market your services through a professional website, social media, networking, advertising, and more. Build marketing into your business plan and budget.
  • Not planning for growth . A good business plan considers your initial startup and strategies for long-term growth. For example, you may eventually want to hire associate therapists, move to a larger office space, or expand into new treatment areas. Plan how you will fund and manage this growth.

Legal Requirements for Opening a Private Practice

Establishing a private practice requires meeting all the necessary legal requirements. These requirements may vary depending on your location and the type of practice you plan to run. Researching and understanding the legal obligations is crucial to ensure that your private practice starts on solid ground.

The most common legal requirements for opening a private practice include the following:

It is crucial to ensure that you meet your state's requirements for practicing, which typically include holding a master's or doctoral degree, obtaining supervised clinical hours, and passing your state's licensing exam.

Malpractice Insurance

Therapists must carry malpractice insurance to protect against lawsuits. Shopping around for coverage that meets your needs and budget is necessary.

Business Registration

To legally establish your business, you must register it as a sole proprietor, partnership, or corporation. Check with your local government to see if you require a business license or permit to operate in your city or county. Additionally, registering your business means you may need an Employer Identification Number (EIN) from the IRS, similar to a Social Security number. You'll use your EIN when filing business taxes and other financial transactions.

HIPAA Compliance

As a healthcare provider, it is crucial to comply with the Health Insurance Portability and Accountability Act (HIPAA). This means establishing privacy policies, using secure electronic records systems, and training staff on HIPAA guidelines. Ensuring that your practice is configured to safeguard client information appropriately is essential.

These essential legal steps ensure your private practice opens on the right foot. Dotting your I's and crossing your T's from the beginning will allow you to focus on building your business with confidence. If you feel overwhelmed, don't hesitate to consult a lawyer specializing in healthcare practices. Their guidance can help set you up for success.

Your Own Comprehensive Business Plan Checklist

To ensure you're on the right track,  ask yourself the following questions :

  • Have you defined your mission statement and business goals?
  • Have you researched your target market and competitors?  Identify client demographics, unmet needs, and similar businesses in your area.
  • Have you created a financial plan with realistic projections?  Test your assumptions and get feedback from experts.
  • Do you have a marketing plan to attract clients?  Consider your online presence, referral sources, and networking opportunities.
  • Have you outlined operating expenses like rent, supplies, insurance, and technology?  Estimate high to be on the safe side.
  • Have you developed a business entity like an LLC and obtained the necessary licenses?  Check with your state's requirements for mental health professionals.
  • Have you created professional branding materials like logos, websites, and business cards?  Consistency builds credibility and awareness.
  • Have you secured an office location that is professional, comfortable, and HIPAA-compliant?  Look for space that fits your budget.
  • Do you plan to address unexpected challenges and adapt your business model based on results?  Be flexible and willing to change aspects that are not working.

Mental Health Private Practice Business Plan Template

This Mental Health Private Practice Business Plan PDF Template offers a comprehensive and structured framework for launching and managing a successful mental health clinic. It covers essential aspects such as market analysis, services offered, financial planning, and operational strategies. Ideal for therapists and psychologists, it's an invaluable tool for creating a tailored business plan that addresses the unique challenges of the mental health sector.

You have the passion, skills, and determination to establish your private practice. It's time to take action and turn your dream into a reality. Building a solid business plan may seem daunting, but it's the key to setting yourself up for success. With a roadmap, you'll have a clear direction and avoid costly mistakes. You are responsible for doing this right to yourself and your future clients. So, get started! Put on some music, roll up your sleeves, and begin working towards opening the doors of your private practice.

Are you looking for a way to simplify your progress note-writing and administrative tasks? Consider  Mentalyc ! Our HIPAA-compliant , AI-powered progress note generator uses audio recordings to create detailed progress notes quickly and easily. And with  our team plan , you can ensure that everyone on your team is on the same page. Sign up today and experience the benefits of Mentalyc for yourself!

After creating a business plan, you may still have questions about how to implement it. Here are some frequently asked questions about private practice business plans.

How often should I review and revise my business plan?

Reviewing and updating your business plan every 6-12 months is recommended to ensure it aligns with your current goals. As things change, it is critical to ensure your plan is up-to-date. Evaluate what strategies are working and what are not, and make necessary adjustments accordingly.

How do I get funding for my private practice?

There are a few options for funding a private practice:

  • Personal savings : Therapists typically fund their practice using their savings. It is recommended to save enough money to cover initial costs such as office space, equipment, marketing, and operating expenses for at least 6-12 months.
  • Business loan:  You can obtain a small business loan from a bank by providing financial projections, tax returns, and personal and business financial statements. Interest rates will vary based on your credit score.
  • Crowdfunding : Websites such as Kickstarter, Indiegogo, and GoFundMe enable you to raise funds from individual donors while providing rewards in exchange and generating excitement for your new practice.
  • Business credit card : If you plan on going this route, using a credit card specifically for business expenses is a good idea. Look for cards that offer rewards like cash back, travel points, or office supply credits, and be sure to pay the balance in full each month.
  • Angel investors : Wealthy individuals may invest in small businesses in exchange for equity, but be wary as it may result in losing control and direction. Consider this option only as a last resort.

What are the keys to a successful business plan?

The keys to a successful private practice business plan are:

  • A clear mission and vision.
  • Realistic and well-researched financial projections.
  • A marketing plan targeting your ideal clients.
  • Competitive positioning.
  • Planning for challenges and obstacles.

Review and revise as needed to keep your plan up-to-date and aligned with your goals. With hard work and persistence, you'll be on your way to opening a successful practice.

How do I price my services?

Pricing plays a critical role in your business plan. Research comparable mental health practices and align your costs and revenue goals to determine a competitive price. Factors that affect pricing include:

  • Your credentials, experience, and specialty
  • The complexity of treatment and time spent with clients
  • Local market rates
  • Cost of your office space, supplies, and other expenses
  • Desired income

Begin by calculating your minimum hourly rate to cover expenses. Then, add a profit margin to achieve your income target. You may provide discounts for long-term clients, package deals, or sliding scales for low-income clients.

What insurance plans should I accept?

When  deciding which insurance plans to accept , research the most common designs in your area and consider accepting those with reimbursement rates that you can expect for your target client demographic.

Consider accepting:

  • Medicaid (if eligible)
  • Commercial PPO and HMO plans from major carriers

It's fundamental to become credentialed with each plan you want to join, understand their requirements, paperwork, billing procedures, and claims processing timelines, and only accept plans that will provide adequate reimbursement for your services.

How do I market my private practice?

Effective marketing strategies for a private practice include:

  • Building an online presence with a professional website and active social media profiles
  • Reaching out to local healthcare providers, community organizations, and businesses for referrals
  • Advertising in relevant online directories and local print/radio sources
  • Creating brochures, flyers, and business cards to distribute locally
  • Joining professional associations for networking opportunities and credibility
  • Offering free consultations and workshops to generate interest
  • Asking satisfied clients for referrals and testimonials

Start with the basics and build your marketing efforts over time as your practice grows. Focus on consistency, delivering excellent client service, and using metrics to track your progress.

  • Bassi, B. (2023, March 27).   Starting a Private Practice? Don't Make These Common Mistakes in Private Practice!  TelepsychHealth.  https://www.telepsychhealth.com/blog/common-mistakes-to-avoid-private-practice/
  • Bhatla, A. (2022, October 28).   Start Your Psychiatry Private Practice pt.1: 4 Questions to Ask Yourself Before You Take The Leap . Osmind.  https://www.osmind.org/blog/4-questions-to-ask-yourself-when-opening-your-private-psychiatry-practice
  • DeGrossa, B. (2022, May 30).   How To Develop A Private Practice Business Plan . CounselingWise.  https://www.counselingwise.com/key-parts-of-a-successful-business-plan/
  • GoodTherapy. (2019, September 23).   How to Create a Solid Business Plan for Your Private Therapy Practice .  https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/how-to-create-a-solid-business-plan-for-your-private-therapy-practice
  • GoodTherapy. (2020, January 8).   Your Checklist for Starting a Private Practice in Counseling .  https://www.goodtherapy.org/for-professionals/business-management/private-practices/article/your-checklist-for-starting-a-private-practice-in-counseling
  • Griffin, M. (2016, November 1).   Starting a Private Practice: Part One . CAMFT | California Association of Marriage and Family Therapists.  https://www.camft.org/Resources/Legal-Articles/Chronological-Article-List/starting-a-private-practice-part-one
  • Lavinsky, D. (2023, December 26).   Mental Health Private Practice Business Plan Template . Growthink.  https://www.growthink.com/businessplan/help-center/mental-health-private-practice-business-plan

All examples of mental health documentation are fictional and for informational purposes only.

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Mental Health Private Practice Business Plan Template

Written by Dave Lavinsky

Mental Health Private Practice Business Plan

You’ve come to the right place to create your Mental Health Private Practice business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their practices.

Below is a template to help you create each section of your Mental Health Private Practice business plan.

Executive Summary

Business overview.

Harmony Mental Health Center is a new mental health private practice located in Portland, Oregon. The practice is focused on helping community members cope with their mental health concerns, such as dealing with life challenges or living with severe mental health disorders. The practice will have a full staff of counselors, psychologists, and psychiatrists in order to offer as many services as possible to help our clients cope and improve their mental well-being.

Harmony Mental Health Center is led by Sasha Pascal, who has been a trained and licensed psychiatrist for 20 years. She has seen many people stop care or not get care at all due to the expensive costs of the mental health industry. She has made it her mission to create a practice that offers a sliding scale so that more members of the Portland community can get the help they need.

Product Offering

Harmony Mental Health Center will provide several mental health services to its clientele to help them with their life challenges and mental health concerns. Some of these services include:

  • Mental health disorder diagnosis and management
  • Individual counseling
  • Group therapy
  • Couples counseling
  • Medication prescription and management
  • Complementary mental health services (such as yoga or meditation)

Customer Focus

Harmony Mental Health Center will serve the residents of the Portland, Oregon area who are struggling with difficult life challenges or serious mental health concerns. We will primarily target residents earning less than the local median income by offering a sliding scale fee system.

Management Team

Harmony Mental Health Center is led by Sasha Pascal, who has been a trained and licensed psychiatrist for 20 years. Throughout her career, Sasha has helped hundreds of clients improve their mental health by providing counseling and medication management services. However, she has seen many people stop care or not get care at all due to the expensive costs of the mental health industry. She has made it her mission to create a practice that offers a sliding scale so that more members of the Portland community can get the help they need.

Success Factors

Harmony Mental Health Center will be able to achieve success by offering the following competitive advantages:

  • Friendly, knowledgeable, and highly qualified team of mental health professionals that will provide effective treatment plans depending on the clients mental health history and needs.
  • Comprehensive list of mental health services that allows the counseling staff to find the best treatment options for each client.
  • An affordable sliding scale that makes our mental health services far more affordable than the competition.

Financial Highlights

Harmony Mental Health Center is currently seeking $650,000 to launch. The funding will be dedicated towards securing the office space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. Specifically, these funds will be used as follows:

  • Office interior build out and design: $100,000
  • Office equipment, supplies, and materials: $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $300,000
  • Marketing costs: $50,000
  • Working capital: $100,000

The following graph below outlines the pro forma financial projections for Harmony Mental Health Center.

Harmony Mental Health Center Financial Projections

Company Overview

Who is harmony mental health center.

Harmony Mental Health Center is a new mental health private practice located in Portland, Oregon. The practice is focused on helping community members cope with their mental health concerns, particularly those who are living with severe conditions such as bipolar disorder, schizophrenia, or post traumatic stress disorder (PTSD). The practice will have a full staff of counselors, psychologists, and psychiatrists in order to offer as many services as possible to help our clients cope and improve their mental well-being.

  In addition to providing these services, we offer sliding scale rates for members who earn below the local median salary. Mental health services are typically very expensive, which prevents many people with mental health disorders from getting the help they need. We hope that by providing this sliding scale, more people will be able to afford our care and get help.

Harmony Mental Health Center’s History

Once Sasha came up with her idea to offer affordable mental health services, she immediately began to do the groundwork to make it a reality. She conducted a market analysis to see who would benefit the most from these services and recruited other mental health professionals who were interested in joining the practice.

After finishing her analysis, she set out to find a potential office location. She has found an ideal location and is currently due diligence on the property. Once the lease is signed, all operations will move there.

Since incorporation, Harmony Mental Health Center has achieved the following milestones:

  • Found a potential commercial space and signed a Letter of Intent to lease it
  • Developed the company’s name, logo, social media accounts, and website
  • Determined space design and required equipment
  • Hired an administrative assistant to help with bookings and schedules
  • Hired several mental health professionals to the team

Harmony Mental Health Center’s Services

Harmony Mental Health Center will provide a wide variety of services to help our clients cope with their challenges and mental health concerns. Each client’s path of treatment will vary depending on their condition or particular challenges and needs.

Below is a list of some of the services that Harmony Mental Health Center will offer to its clients:

Industry Analysis

The mental health services industry is expected to grow substantially over the next few years.

Now that the world understands the importance of mental health, many people are seeking out care for their mental health concerns. This is creating incredible demand for mental health private practices and the expertise and care of mental health professionals. This demand will ensure the industry continues to expand and remains profitable.

One challenge to private practices is the popularity of app-based therapy companies such as BetterHelp and Talkspace. These apps have thousands of customers due to their convenience and affordable rates. Private practices that offer remote sessions and inexpensive fees will be able to compete with these apps.

Another challenge is the skyrocketing costs of mental health care. Due to demand and inflation, counseling fees and medication costs are quickly rising. This makes it much harder for people in middle or lower economic brackets to receive the care they need. Practices that offer sliding scale fees or partner with numerous insurance plans are more likely to keep a steady clientbase.

Customer Analysis

Demographic profile of target market.

The demographic for the Portland, Oregon area are as follows:

TotalPercent
    Total population1,680,988100%
        Male838,67549.9%
        Female842,31350.1%
        20 to 24 years114,8726.8%
        25 to 34 years273,58816.3%
        35 to 44 years235,94614.0%
        45 to 54 years210,25612.5%
        55 to 59 years105,0576.2%
        60 to 64 years87,4845.2%
        65 to 74 years116,8787.0%
        75 to 84 years52,5243.1%

Customer Segmentation

Harmony Mental Health Center will primarily target the following customer profiles:

  • Residents with mental health conditions
  • Residents earning less than the median income
  • Young adults

Competitive Analysis

Direct and indirect competitors.

Harmony Mental Health Center will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mount Hood Therapy Center

Mount Hood Therapy Center is a large and popular therapy clinic that provides a wide range of counseling and mental health services. It staffs dozens of mental health professionals who all have various backgrounds, training, and education. This allows them to serve as many clients as possible and provide them with the exact mental health treatment they need. These services include traditional counseling, medication management, and complementary therapies, such as yoga.

While we expect Mount Hood Therapy Center to continue to thrive based on its popularity and variety of services offered, the clinic is very expensive and primarily caters to residents who earn a high income or have great insurance. Residents earning under the median income are not likely to afford these services and will come to Harmony Mental Health Center to receive care.

Stumptown Wellness

Stumptown Wellness is a counseling clinic that will be located in the same business center as Harmony Mental Health Center. It is a fairly affordable clinic that provides individual, group, and couples counseling services. It is one of the more popular counseling clinics in the area and has had a great reputation since its opening in 2005.

Though Stumptown Wellness is thriving, the practice does not offer psychiatry services or medication management options. Many people with mental health conditions utilize these services to manage their symptoms and need a practice that provides them. Therefore, people with these conditions will be more inclined to seek the help of Harmony Mental Health Center.

Mental Health Matters

Mental Health Matters is a community service of affordable therapy offered by a local university. It is run by students who are training to become licensed therapists but do not have a license yet. They are supervised by their professors, who are trained, experienced, and licensed therapists. Because licensed professionals do not conduct the services, they are offered at an affordable rate and only to clients who earn less than the median income in the area.

Though Mental Health Matters offers a great service to the community, many clients prefer working with a licensed professional. We will be able to provide a similar sliding scale but also provide mental health services that are administered by trained and licensed professionals. Mental Health Matters also does not provide psychiatric services which our practice will have.

Competitive Advantage

Harmony Mental Health Center will be able to offer the following advantages over their competition:

  • Friendly and qualified staff : Harmony Mental Health Center will hire a team of friendly, knowledgeable, and highly qualified mental health professionals that will provide effective treatment plans to our clients.
  • Quality mental health services : Harmony Mental Health Center will have a comprehensive list of mental health services that allows the counseling staff to find the best treatment options for each client.
  • Sliding scale : Harmony Mental Health Center will offer a sliding scale fee system that makes our mental health services far more affordable than the competition.

Marketing Plan

Brand & value proposition.

Harmony Mental Health Center will offer the unique value proposition to its clientele:

  • Convenient location
  • Qualified and highly trained team of counselors, psychologists, and psychiatrists
  • Comfortable, relaxing atmosphere
  • Sliding scale for residents earning less than the median income

Promotions Strategy

The promotions strategy for Harmony Mental Health Center is as follows:

Website/SEO

Harmony Mental Health Center will design an efficient and appealing website to attract clients. The website will be well organized, informative, and list the services that we provide. The website will also list information about our sliding scale.

We will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Portland mental health center ” or “mental health center near me”, Harmony Mental Health Center will be listed at the top of the search results.

Social Media

Sasha Pascal will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure Harmony Mental Health Center maintains an active social media presence with regular updates and promotional content to incentivize customers to utilize our services.

Doctor’s Offices

Sasha will visit multiple doctors and primary care offices to ask them to refer our company to any patients needing affordable mental health services. We will ask them to keep a handful of our brochures on hand and hand them out to whoever requests a mental health clinic.

Ongoing Customer Communications

Harmony Mental Health Center will publish a monthly email newsletter to provide education information about mental health as well as self-care tips.

Harmony Mental Health Center’s pricing will be moderate so clients feel they receive great value when utilizing our mental health services. We will bill our clients’ insurance companies first and then charge our clients directly for whatever their plans don’t cover.

Operations Plan

The following will be the operations plan for Harmony Mental Health Center. Operation Functions:

  • Sasha Pascal will be the President of Harmony Mental Health Center and oversee the general operations of the practice. She will also provide counseling and psychiatry services to her initial clientbase.
  • Sasha recently hired an Administrative Assistant named Janie White. She will help with scheduling appointments, basic marketing tasks, and other general administrative duties.
  • To meet the mental health needs of the community, Sasha will hire a solid team of counselors, psychologists, and psychiatrists who can provide a wide variety of mental health services for the company.

Milestones:

Harmony Mental Health Center will have the following milestones completed in the next six months.

  • 07/202X – Finalize lease agreement
  • 08/202X – Design and build out Harmony Mental Health Center
  • 09/202X – Hire and train initial staff
  • 10/202X – Kickoff of promotional campaign
  • 11/202X – Launch Harmony Mental Health Center
  • 12/202X – Reach break-even

Sasha Pascal has a Ph.D in Psychology from the University of Oregon. In addition to helping clients with their mental health concerns, she has been running her own private practice for nearly ten years. Therefore, she has the necessary experience to run a larger mental health private practice and will lead our company to success.

Financial Plan

Key revenue & costs.

The key revenues for Harmony Mental Health Center will come from the fees charged for providing mental health services. The fees will either be charged directly to the client or their insurance carrier, depending on whether or not they have insurance coverage for mental health care.

The major cost drivers for the company will include the cost of supplies, salaries, overhead costs, and marketing expenses.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

  • Number of clients per year:
  • Year 3: 125
  • Year 4: 165
  • Year 5: 200
  • Annual rent: $100,000
  • Average counseling session cost: $100

Financial Projections

Income statement.

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Mental Health Private Practice Business Plan FAQs

What is a mental health private practice business plan.

A mental health private practice business plan is a plan to start and/or grow your mental health private practice business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Mental Health Private Practice business plan using our Mental Health Private Practice Business Plan Template here .

What are the Main Types of Mental Health Private Practice Businesses?

There are a number of different kinds of mental health private practice businesses , some examples include: Cognitive Therapy, Behavioral Therapy, Holistic Therapy, and Interpersonal Therapy.

How Do You Get Funding for Your Mental Health Private Practice Business Plan?

Mental Health Private Practice businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Mental Health Private Practice Business?

Starting a mental health private practice business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Mental Health Private Practice Business Plan - The first step in starting a business is to create a detailed mental health private practice business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your mental health private practice business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your mental health private practice business is in compliance with local laws.

3. Register Your Mental Health Private Practice Business - Once you have chosen a legal structure, the next step is to register your mental health private practice business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your mental health private practice business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Mental Health Private Practice Equipment & Supplies - In order to start your mental health private practice business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your mental health private practice business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

  • Sample Business Plans
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Mental Health Private Practice Business Plan

Executive summary image

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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Free Business Plan Template

Download our free mental health private practice business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

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.This section may include the name of your private practice business, its location, when it was founded, the type of private practice (E.g., psychiatry practice, neuropsychology practice, behavioral therapy, holistic therapy), etc.
  • Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
  • Products and Services: Highlight the mental health private practice services you offer your clients. The USPs and differentiators you offer are always a plus.For instance, you may include assessments and evaluations, individual therapy, group therapy, family therapy, and medication management, as services and mention expertise in teen behavioral issues and holistic healing practices as some of your USPs.
  • Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
  • Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
  • Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

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

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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:

  • 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.
  • Owners: List the names of your private practice company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
  • Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
  • 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.Additionally, If you have received any awards or recognition for excellent work, describe them.
  • Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

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.For instance, school students and young adults would be an ideal target audience for an adolescent and adult mental health private practice business.
  • Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.Mental health youth care is a whopping 26 billion dollar market . Clearly determine your specialty, i.e. ADHD care, and identify your serviceable market to get a precise understanding of your growth potential.
  • Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your mental health private practice services from them. Point out how you have a competitive edge in the market.
  • 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.For instance, specialized mental health practices, i.e. ADHD care amongst teenagers have a booming market; explain how you plan on dealing with this potential growth opportunity.
  • Regulatory Environment: List regulations and licensing requirements that may affect your mental health private practice company, such as professional license, business registration, HIPAA adherence, insurance, environmental regulations, state, and federal regulations, etc.

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:

  • Assessments and evaluation
  • Treatment planning
  • Medication management
  • Therapy sessions
  • Psychoeducation
  • Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service.This may include regular supervision, services by highly competent professionals, outcome measurement, and feedback.
  • Additional Services: Mention if your mental health private practice company offers any additional services. You may include services like telehealth consultations, support group programs, mental health workshops, etc.

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.For example, specialization in certain types of treatment or age groups, i.e. behavioral treatment and ADHD specialty amongst teenagers and young adults could establish great USP for an adolescent and adult mental health private practice company.
  • Pricing Strategy: Describe your pricing strategy—how you plan to price your mental health services and stay competitive in the local market. You can mention discounts on student IDs to attract young adults and college students to your adolescent mental health private practice service.
  • Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
  • Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include free consultations, consultative selling, partnering with educational institutions, offering referral programs, etc.
  • Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, free therapy sessions, discounts on treatment plans, personalized service, etc.

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: Mention your mental health private practice business’s staffing requirements, including the number of supervisors, support staff, mental health professionals, and administrative and marketing staff needed. Include their qualifications, the training required, and the duties they will perform.
  • Operational Process: Outline the processes and procedures you will use to run your mental health private practice business. Your operational processes may include responding to queries, providing therapy, making follow-up calls, billing and insurance, and providing education and training.
  • Software & Tools: Include the list of equipment and machinery required for mental health private practice, such as diagnostic tools, office equipment, EHR system, etc.Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

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: Mention the founders and CEO of your mental health private practice company, and describe their roles and responsibilities in successfully running the business.
  • Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. mental health professional, customer services manager.) involved in the mental health private practice business operations, including their education, professional background, and any relevant experience in the mental health industry.
  • Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
  • Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
  • Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

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: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
  • Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
  • Balance Sheet: Create a projected balance sheet documenting your mental health private practice business’s assets, liabilities, and equity.
  • Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
  • Financing Needs: Calculate costs associated with starting a mental health private practice, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

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.

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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.

About the Author

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Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Psychiatric Business Plan Template

Psychiatric Business Plan Template

Hundreds of new psychiatric private practices are started each year, yet I repeatedly hear from graduating psychiatry residents and psychiatric private practice colleagues that they have not had adequate preparation in the business of running a private practice. Off the shelf business plan templates were helpful but did not quite hit the mark for me when I started my practice in 2002. So, I modified them over time to come up with a system that worked well for me and am sharing it here.

Legal Framework

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). I recommend consulting with a local accountant and lawyer with experience working for other health care providers before deciding. I have not been convinced of clear advantages to one versus another, with one exception: for those that think that they have a high likelihood of creating a group practice, you might as well fork over the extra money to set up an LLC or S corporation so that you have the option of continuing under the same tax ID #.

Service Delivery Model

I am referring here to questions that you probably have already answered before deciding to start your practice. What kinds of patients do you want to see, including age range and presenting problems? How many hours per week do you wish to work and on what days? What types of services will you provide (i.e. therapy versus medication management)?

Generating Patient Flow

The two most common means for finding new patients are to utilize and nurture a referral network and to be on insurance contracts. Depending on the supply and demand characteristics in your area, being on insurance contracts is sometimes all that is needed. But, in most cases, you will need to develop referral sources to generate patient flow and to build the kind of practice that you want. Your referral sources will know your strengths and weaknesses and will refer accordingly. Developing referral sources is all about networking, which I will cover in more depth in another post.

Another very powerful, but still underutilized method for generating patient flow, is through internet marketing. This could be as simple as putting up a practice website and including information about your skills and expertise. If you have unique skills that would stand out in a keyword search, then simply having a website might be enough to generate patient flow. But, in the competitive world of internet marketing, there are many, many additional things that you can do to generate traffic to your site. The common buzzwords are search engine optimization (SEO), search engine marketing (SEM), and social media marketing. Most private practices that use internet marketing will stop with SEO. If you do not yet have a website and plan to build one with the intention of driving traffic to your site, I recommend getting professional help before you start. That way, you can design the site with an eye towards SEO. In the Seattle area, experienced internet marketing professionals cost between $80 to $200 per hour or work on retainer. You could start by putting an ad in craigslist and shopping until you find one that has experience working with small practice health care providers.

Operations Model

I break up operating processes into four categories: facilities, front office, back office, and insurance.

Facilities refer to your plan for the location, furniture, phone, internet, hardware, and any other tangible item or service that enables you to provide your clinical services.

Front office refers to your plan for handling non-clinical patient-facing interactions such as your intake process, administrative phone calls, reception and scheduling, eligibility and verification checking, handling of patient payments, no-show and cancellation policies, and prescription management policies and procedures. Some of these functions can be carried out by front office staff or even by an Electronic Health Record (EHR) .

Back-office functions are dominated by medical billing but could also include transcription services and handling of documents.

Insurance refers to the package of insurance that you’ll need including general liability, professional liability, or any other insurance you might want for you or your staff including medical, dental, and long and short-term disability insurance.

Check out Valant’s new billing solutions for mental health practices .

Continue reading: Psychiatric Business Plan Template

Team refers to internal staff and outside consultants such as a lawyer, accountant, bookkeeper and medical biller. If you have an Electronic Health Record (EHR) , you might consider your account manager or vendor as part of your team, since they will have such an important role in helping you organize your workflow.

Financial Model

It is not necessary to have fancy financial projections to start and successfully operate a small psychiatric private practice. However, it is important to understand the basics of how you generate net income and understand concepts such as opportunity cost . While some readers will consider these concepts insultingly simplistic, I find that it is often helpful to deeply review the obvious in a formula. Formula number one is below:

  • Net Income = Revenue – expenses

By itself, this is not especially enlightening or profound. But it then tells us which variables we’ll need to further break down. See below:

  • Revenue = Average Fee per face to face hour x hours worked

In my experience, the typical starting psychiatrist will overestimate this number. This comes from overestimating collections rates, fees paid by insurance for a unit of service, show rate, and patient flow. So I’d budget for 20% less than whatever you come up with in your plan, at least until you get validation from real revenue.

A basic rule of thumb for expenses is that they represent anywhere from 15-30% of total revenue for a solo practice. If you employ staff or outside services for front office and back-office work, they tend to be divided pretty equally between the three. If you do not employ staff, then these expenses are more heavily loaded on facilities. Make no mistake, you are paying for those front office and back-office functions with your time. This is where the concept of opportunity cost applies. The cost of your time is dependent upon either the value you place on your time or the revenue you could generate by seeing patients during that time. However, opportunity cost does not explicitly appear in your financial statements.

  • Expenses = Facilities + Front Office + Back Office + Insurance

1. Don’t sweat excessively about location. You will probably move within 2 years. At that point, you’ll better understand your needs

2. Networking always pays off in terms of building the type of practice you want. Start early since that is when you will have the most time.

3. Start with a behavioral health care focused Electronic Health Record . It’s easier to build it into the fabric of your practice from the beginning rather than switching later.

4. Most small business owners overestimate revenue, especially during transitions. Make sure that you have other sources of cash during your ramp-up including other part-time work, savings, or a line of credit.

5. Understand Opportunity Cost. There are many things in life that you love and do well. If you don’t love medical billing, don’t do it.

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mental health hospital business plan

How to Start a Mental Health Business

Studies estimate that more than 1 in five American adults live with a mental health disorder. Mental health businesses play a vital role in addressing this need for effective mental health care. Knowing how to start your business the right way is crucial if you have a service to offer. What business type is best? Are there zoning requirements? We review how to start a mental health business the right way. 

Choose Your Business Type

When figuring out how to start a mental health business, the first step is deciding what type of business you plan to have. If you are going to work alone, you can choose to operate a sole proprietorship or an LLC.

If you plan to operate your mental health business with several other professionals, a partnership or corporation might be a better structure for you. The biggest difference between these comes down to tax implications. 

For example: A sole proprietorship is where you work alone, but in the event that your mental health business is sued or something goes wrong, all of your professional and personal assets can be used to cover the lawsuit or debt. In comparison, an LLC is a business type you can use on your own or with partners, and in the event that something goes wrong or the business closes, only professional assets are used.

Get Licensed

You’ll need to have any relevant licenses contingent upon the type of mental health business you are planning to start. For example:

  • If you are offering therapy, you’ll need to be a licensed therapist, and each state will have different requirements for obtaining a license.
  • If you are offering coaching services such as recovery coaching, you may or may not need a license, but you might want to complete certain certifications.
  • If you have third parties offering services as part of your mental health business, such as meditation services, equine therapy, or similar holistic services, make sure that they have appropriate licenses to operate in your state. 

Check Your Zoning Regulations

When you create your business plan and choose the business type, you’ll also need to decide whether you plan to offer in-person services, online services, or a combination of the two.

If you have any type of in-person services you will need a physical office. Figuring out how to start a mental health business requires that you check zoning regulations if you plan to have a physical business location. In different cities there are zoning regulations that dictate which buildings and areas can be used for commercial purposes instead of residential purposes. 

Even if you plan to exclusively offer online mental health services and you operate out of a home office, you’ll still need to make sure that you are not in violation of any HOA or other zoning regulations to have a home business. 

Do Your Homework

While you are figuring out how to start a mental health business that fits within zoning regulations and has the right type of business structure, you’ll also need to do your homework as it applies to your market research.

Market research goes a long way toward helping you determine which type of services you want to offer and where you want to provide your service.

Look at how many other companies exist in your local area offering the same type of mental health services. At the same time, look at population data and demographics. If you are operating in an area with high rates of addiction, virtual coaching for aftercare might be a viable service that is not currently offered.

If you live in an area with a high number of therapists specializing in mental health, traditional therapy services might already saturate the market, in which case holistic services such as life skills training might be a better business plan for you. 

All good companies require insurance, especially mental health practices. Once you have the business type, name, and insurance, you’ll need to write a business plan as well as a marketing plan. From there, you’ll also have to register your business, file paperwork so that you can pay taxes, and prepare all of your marketing efforts and your clinical forms. 

Marketing and Growing Your Business with C4 Consulting

C4 Consulting can help you transform your business. Our drug rehab consulting and startup consulting services can help you by helping you create your marketing strategy, figure out staffing needs, keep the right insurance, and grow your finances. 

We can help you transform your mental health business and achieve the outcomes that you need for sustainable growth. Figuring out how to start a mental health business has never been easier with our online services and consulting opportunities.Reach out to our team to learn more about our healthcare financial consulting and how we can help you start your mental health business today.

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Business Plan Template for Mental Health Services

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Starting a mental health clinic or organization can be a daunting task, especially when it comes to securing funding and support for your services. But with ClickUp's Business Plan Template for Mental Health Services, you can confidently outline your vision, goals, and strategies to effectively communicate your business model.

This comprehensive template is designed specifically for mental health clinics and organizations, and includes everything you need to create a compelling business plan. From articulating your mission and setting financial projections, to developing marketing strategies and operational plans, ClickUp's template has got you covered.

With ClickUp's Business Plan Template for Mental Health Services, you can showcase the value and impact of your mental health services, and take the first step towards building a successful and thriving clinic or organization. Start planning your future today!

Business Plan Template for Mental Health Services Benefits

A Business Plan Template for Mental Health Services can provide several benefits to mental health clinics or organizations, including:

  • Clearly defining the vision, mission, and goals of the mental health services, ensuring alignment and clarity among all stakeholders
  • Outlining financial projections, helping secure funding and resources necessary to support the growth and sustainability of the mental health organization
  • Identifying target market segments and developing effective marketing strategies to reach and engage the right audience
  • Detailing operational plans, ensuring smooth and efficient delivery of mental health services
  • Providing a roadmap for continuous improvement and strategic decision-making, enabling the mental health organization to adapt and thrive in a dynamic healthcare landscape.

Main Elements of Mental Health Services Business Plan Template

ClickUp’s Business Plan Template for Mental Health Services is the perfect tool to help mental health clinics or organizations outline their goals and strategies effectively:

  • Custom Statuses: Track the progress of each section of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect is accounted for and easily managed.
  • Custom Fields: Utilize custom fields like Reference, Approved, and Section to provide additional information and categorize different aspects of your business plan, allowing for easy organization and retrieval of essential details.
  • Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and the Getting Started Guide to visualize your business plan from various angles, making it easier to navigate and collaborate with team members.
  • Collaboration and Documentation: Collaborate with your team, assign tasks, and attach relevant documents such as financial projections, marketing strategies, and operational plans directly within ClickUp, streamlining the process and ensuring everything is in one place.

How To Use Business Plan Template for Mental Health Services

Creating a business plan for mental health services can be a complex process, but with the help of ClickUp's Business Plan Template, you can simplify it. Follow these four steps to get started:

1. Define your mission and target audience

Begin by clearly defining your mission statement and identifying your target audience. What kind of mental health services do you want to provide, and who do you want to serve? Consider the specific needs of your target audience and how your services will address those needs.

Use a Doc in ClickUp to outline your mission statement and describe your target audience in detail.

2. Conduct market research

Before launching your mental health services, it's crucial to understand the market landscape and identify potential competitors. Conduct thorough market research to gather insights about the demand for mental health services in your area, the current service providers, and any gaps or opportunities in the market.

Use the Table view in ClickUp to organize and analyze your market research data, including competitor analysis, target market demographics, and industry trends.

3. Develop a service offering and pricing strategy

Based on your mission and market research, develop a comprehensive service offering that aligns with the needs of your target audience. Determine the types of mental health services you will provide, such as therapy, counseling, or support groups, and decide on the pricing structure for each service.

Create custom fields in ClickUp to track and manage your service offering and pricing strategy. This will help you keep track of the different services, their pricing, and any additional details.

4. Create a financial plan

A solid financial plan is essential for the success of any business. Estimate your startup costs, including expenses for hiring staff, renting office space, acquiring equipment, and marketing your services. Develop a revenue projection based on your service pricing and projected client base.

Use Dashboards in ClickUp to create visual representations of your financial plan, including income projections, expense breakdowns, and cash flow analysis. This will help you monitor and track your financial performance over time.

By following these four steps and utilizing ClickUp's Business Plan Template, you can create a comprehensive business plan for your mental health services. This plan will serve as a roadmap for your success and guide your decision-making process as you start and grow your business.

Get Started with ClickUp’s Business Plan Template for Mental Health Services

Mental health clinics and organizations can use this Business Plan Template for Mental Health Services to effectively communicate their vision, goals, and strategies to secure funding and support for their services.

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 a comprehensive business plan:

  • Use the Topics View to organize different sections of your business plan, such as vision, mission, goals, financial projections, and marketing strategies
  • The Status View will help you track the progress of each section, whether it's complete, in progress, needs revision, or still to do
  • The Timeline View will allow you to set deadlines and milestones for each section of your business plan
  • The Business Plan View provides a holistic overview of your entire plan, allowing you to easily navigate and make updates
  • The Getting Started Guide View will provide step-by-step instructions and tips to help you get started and complete your business plan
  • Customize the Reference, Approved, and Section custom fields to add additional information and track the status of each section
  • Update statuses and custom fields as you progress through each section to keep team members informed of progress
  • Monitor and analyze your business plan to ensure it aligns with your goals and effectively communicates your mental health services.
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Writing a Business Plan for a Mental Health Clinic: Key Strategies

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Starting a successful mental health clinic requires meticulous planning and preparation. This comprehensive 9-step checklist outlines the essential steps to take before crafting your business plan. From conducting thorough market research to assembling a qualified team of healthcare professionals, this guide will equip you with the necessary tools to establish a thriving mental health practice that meets the unique needs of your target demographics.

Steps Prior To Business Plan Writing

Step Key Considerations
Conduct thorough market research and analysis

Gather data on the local and regional mental health landscape, including the prevalence of mental health issues, existing clinics and their services, and the overall demand for mental health care. Analyze demographic trends, socioeconomic factors, and potential growth opportunities.

Identify target demographics and their unique needs

Determine the specific age groups, income levels, and geographic areas that your clinic will serve. Understand the unique mental health challenges and preferences of these target populations to tailor your services accordingly.

Determine the services and treatments to offer

Carefully evaluate the range of mental health services and treatments that your clinic will provide, such as individual therapy, group counseling, psychiatric assessments, and medication management. Ensure that your offerings align with the identified needs of your target demographics.

Assess the competitive landscape and differentiate the clinic

Analyze the existing mental health clinics in your area, their service offerings, pricing structures, and patient satisfaction levels. Identify the unique value proposition that your clinic can offer to stand out from the competition, such as specialized treatment modalities, innovative technologies, or a personalized approach to care.

Secure appropriate licensing, permits, and regulatory compliance

Familiarize yourself with the licensing requirements, permits, and regulatory guidelines applicable to mental health clinics in your jurisdiction. Ensure that you have all the necessary documentation and approvals in place before commencing operations.

Develop a robust financial plan and budget

Estimate the start-up costs, ongoing operational expenses, and projected revenue streams for your mental health clinic. Determine the appropriate pricing structure for your services, taking into account factors such as market rates, insurance coverage, and the financial capabilities of your target demographics.

Assemble a qualified team of healthcare professionals

Identify and recruit a team of experienced and licensed mental health professionals, including therapists, counselors, psychiatrists, and support staff. Ensure that your team possesses the necessary qualifications, expertise, and a shared commitment to providing high-quality care.

Establish strategic partnerships and referral networks

Forge partnerships with other healthcare providers, community organizations, and local authorities to create a robust referral system and expand your reach within the mental health ecosystem. These collaborations can help ensure a steady flow of patients and enhance the overall quality of care.

Devise a comprehensive marketing and outreach strategy

Develop a strategic marketing plan to effectively promote your mental health clinic, raise awareness, and attract your target demographics. This may include online marketing, social media campaigns, local community outreach, and strategic partnerships with healthcare providers and community organizations.

Conduct Thorough Market Research and Analysis

Launching a successful mental health clinic begins with a deep understanding of the local market and the unique needs of the target demographic. By conducting comprehensive market research, you can uncover valuable insights that will shape the foundation of your business plan and guide strategic decision-making throughout the clinic's development.

The first step in your market research process should be to analyze the current state of the mental health industry in your target region. Gather data on the prevalence of mental health issues , the availability of existing mental health services , and the unmet demand for personalized, high-quality care. According to the National Institute of Mental Health, nearly 1 in 5 adults in the U.S. live with a mental illness , underscoring the significant need for accessible and effective mental health solutions.

  • Utilize reliable sources like government health agencies, industry reports, and academic studies to gather comprehensive market data.
  • Conduct surveys and interviews with potential patients to understand their pain points, preferences, and expectations regarding mental health services.
  • Analyze demographic trends, including age, income levels, and geographic distribution, to identify underserved populations and tailor your clinic's offerings accordingly.

Next, closely examine the competitive landscape in your target market. Identify existing mental health clinics, private practices, and other healthcare providers offering similar services. Analyze their service offerings, pricing structures, and patient satisfaction levels to determine how your clinic can differentiate itself and provide a superior patient experience.

By conducting a thorough SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis , you can uncover the unique advantages and challenges your mental health clinic may face. This will enable you to develop a strategic plan that capitalizes on your strengths, addresses your weaknesses, seizes emerging opportunities, and mitigates potential threats.

Ultimately, the insights gained from your market research will be instrumental in shaping the core elements of your mental health clinic's business plan , including your target demographics, service offerings, pricing strategies, and marketing initiatives. By deeply understanding the local market and the needs of your prospective patients, you can create a clinic that is poised for long-term success and sustainable growth.

Mental Health Clinic Business Plan Get Template

Identify Target Demographics and Their Unique Needs

As the first crucial step in developing a comprehensive business plan for Serenity Springs Mental Health Clinic, it is essential to thoroughly identify the target demographics and their unique mental health needs. By gaining a deep understanding of the specific populations the clinic aims to serve, the leadership team can tailor the services, treatment approaches, and overall patient experience to ensure maximum impact and satisfaction.

The target demographic for Serenity Springs Mental Health Clinic will primarily consist of individuals aged 18 to 65 residing in the urban and suburban areas within a 30-mile radius of the clinic's proposed location. This demographic is particularly vulnerable to various mental health challenges, including anxiety, depression, trauma, and work-related stress, which have been on the rise in recent years.

According to the National Institute of Mental Health , the prevalence of mental illness among adults in the United States is estimated at 20.6% , with the highest rates observed in the 18 to 25 age group at 29.4% . Additionally, the Substance Abuse and Mental Health Services Administration reports that individuals living in urban areas are 25% more likely to experience mental health issues compared to their rural counterparts.

  • Conduct in-depth market research, including surveys, focus groups, and demographic analysis, to gain a comprehensive understanding of the target population's specific mental health needs and preferences.
  • Collaborate with local healthcare providers, community organizations, and mental health advocacy groups to gather insights and identify underserved segments within the target demographic.
  • Utilize data from reputable sources, such as the Centers for Disease Control and Prevention and American Psychological Association , to inform the clinic's service offerings and tailor the patient experience.

By meticulously identifying the target demographics and their unique mental health needs, Serenity Springs Mental Health Clinic can position itself as a trusted and innovative healthcare provider, offering personalized care and holistic solutions that address the specific challenges faced by the local community.

Determine the Services and Treatments to Offer

Developing a comprehensive service offering is a critical step in crafting a robust business plan for your mental health clinic. By carefully evaluating the specific needs of your target demographic and aligning your services accordingly, you can ensure your clinic stands out in the competitive healthcare landscape.

Begin by conducting in-depth market research to gain a deep understanding of the mental health challenges and treatment preferences of your prospective patients. Analyze industry trends, demographic data, and feedback from focus groups to identify the most pressing concerns and unmet needs in your local community. This will help you curate a service portfolio that truly resonates with your target audience.

When determining the services and treatments to offer, consider a balanced approach that integrates both traditional and holistic methods. Studies show that a combination of evidence-based psychotherapy, medication management, and complementary therapies can lead to significantly better outcomes for mental health patients. Some key services to consider include:

  • Individual and group therapy sessions (e.g., cognitive-behavioral therapy, dialectical behavior therapy, psychodynamic therapy)
  • Medication management and prescription services
  • Counseling for specific mental health conditions (e.g., depression, anxiety, PTSD, bipolar disorder)
  • Holistic therapies (e.g., mindfulness-based practices, art therapy, music therapy, yoga, meditation)
  • Family and couples counseling
  • Specialized programs for adolescents, seniors, or other demographic-specific needs

Additionally, explore opportunities to offer innovative, technology-driven solutions, such as telehealth services, mobile apps, or virtual support groups. Research indicates that the adoption of digital mental health tools has increased by over 50% since the COVID-19 pandemic, highlighting the growing demand for accessible, convenient care options.

  • Continuously review and adapt your service offerings based on evolving patient needs, industry trends, and feedback from your healthcare team and community stakeholders.
  • Prioritize services that align with your clinic's mission, values, and unique competitive advantages to differentiate your brand in the market.
  • Ensure that your service mix is financially viable and sustainable, considering factors such as reimbursement rates, staffing requirements, and operational costs.

By carefully curating a diverse, evidence-based range of mental health services and treatments, you can position your clinic as a trusted, comprehensive care provider that meets the diverse needs of your community.

Assess the Competitive Landscape and Differentiate the Clinic

Conducting a thorough competitive analysis is a critical step in developing a robust business plan for your mental health clinic. By understanding the competitive landscape, you can identify unique opportunities to differentiate your services and position your clinic as a preferred choice for patients.

Start by researching the existing mental health providers in your target market. Analyze their service offerings, pricing structures, patient demographics, and treatment approaches. Identify any gaps or unmet needs in the current mental health care ecosystem that your clinic can address.

  • Utilize online directories, industry reports, and local directories to gather information on your competitors.
  • Reach out to potential patients in your target demographic to understand their preferences and pain points.
  • Attend industry events or conferences to network with other mental health professionals and stay up-to-date on market trends.

Once you have a comprehensive understanding of the competitive landscape, focus on differentiating your clinic. This can be achieved through a unique service offering, a specialized treatment approach, or a distinct patient experience. For example, you could offer integrative therapies that combine conventional treatments with holistic methods, or provide personalized care plans tailored to each patient's specific needs.

Additionally, consider leveraging your clinic's location, accessibility, or the expertise of your healthcare team as unique selling points. By highlighting these differentiators, you can attract and retain patients who are seeking a specialized and personalized mental health care experience.

  • Conduct market research to identify the unmet needs and preferences of your target demographic.
  • Analyze the pricing and service offerings of your competitors to identify opportunities for differentiation.
  • Develop a unique value proposition that clearly communicates the benefits of choosing your mental health clinic.

Remember, the competitive landscape in the mental health industry can be dynamic, with new providers and treatment modalities emerging regularly. Regularly monitor the market and be prepared to adapt your clinic's strategy to maintain a competitive edge and provide the highest quality of care to your patients.

Mental Health Clinic Financial Model Get Template

Secure Appropriate Licensing, Permits, and Regulatory Compliance

Establishing a mental health clinic requires navigating a complex web of licensing, permits, and regulatory compliance. This critical step ensures the clinic's operations adhere to industry standards and safeguard the wellbeing of patients. As you embark on your journey to open 'Serenity Springs Mental Health Clinic,' diligently addressing these requirements will lay a solid foundation for your business success.

The first step is to research and understand the licensing and regulatory requirements specific to your state and local jurisdiction . These may include, but are not limited to, obtaining a business license, a health care facility license, and any specialized licenses for mental health practitioners. Depending on the services you plan to offer, you may also need to secure permits for specific treatment modalities, such as those involving medication management or intensive therapies.

In addition to licensing, you must ensure your clinic complies with all relevant healthcare regulations and industry standards . This may include adhering to the Health Insurance Portability and Accountability Act (HIPAA) for patient privacy and data security, as well as meeting the requirements set forth by the Centers for Medicare and Medicaid Services (CMS) and other governing bodies.

To navigate this complex landscape, it is highly recommended to consult with legal and regulatory experts who can provide guidance tailored to your specific business plan and location. They can help you identify all necessary permits and licenses, ensure you meet the appropriate standards, and assist with the application and approval process.

  • Familiarize yourself with the licensing and regulatory requirements for mental health clinics in your state and local jurisdiction.
  • Ensure your clinic's operations adhere to HIPAA regulations and other industry standards to protect patient privacy and data security.
  • Seek the advice of legal and regulatory experts to guide you through the complex process of securing the necessary permits and licenses.

By diligently addressing the licensing, permits, and regulatory compliance requirements, you will establish a solid foundation for your mental health clinic, demonstrating your commitment to providing high-quality, ethical, and legally compliant care to your patients. This crucial step will not only safeguard your business but also instill confidence in your patients and the broader community you serve.

Develop a Robust Financial Plan and Budget

Crafting a comprehensive financial plan is a critical step in the development of a successful mental health clinic. This plan will serve as the financial blueprint for your business, outlining the projected costs, revenue streams, and overall financial viability of your venture. By meticulously planning your financial strategy, you can ensure the long-term sustainability and growth of your mental health clinic.

Begin by conducting a thorough analysis of the startup costs associated with establishing your clinic. This includes the expenses for securing a suitable location, purchasing or leasing necessary equipment, hiring qualified staff, and ensuring regulatory compliance. According to industry data, the average startup cost for a mental health clinic ranges from $50,000 to $250,000, depending on the scope and scale of the operation.

  • Research and document all potential startup costs, including one-time and recurring expenses, to develop an accurate budget.
  • Explore funding options such as small business loans, investor financing, or grants to supplement your initial capital investment.
  • Allocate a portion of your budget for ongoing operational expenses, including rent, utilities, insurance, and continuing education for your staff.

Alongside startup costs, it is crucial to project your anticipated revenue streams. This involves estimating the number of patients you can realistically serve, the average reimbursement rates for various mental health services, and the potential for growth over time. Industry data suggests that the average annual revenue for a mental health clinic ranges from $500,000 to $2 million, with the potential for higher earnings in specialized or high-demand services.

With a clear understanding of your startup and operational costs, as well as your projected revenue, you can develop a comprehensive financial plan that includes cash flow projections, profit and loss statements, and a detailed budget. This plan will not only help you secure funding but also serve as a roadmap for managing the financial health of your mental health clinic.

Remember, the financial plan is a living document that should be regularly reviewed and updated as your business evolves. By staying vigilant and adaptable, you can ensure the long-term viability and success of your mental health clinic.

Assemble a Qualified Team of Healthcare Professionals

Building a skilled and experienced team is a crucial step in launching a successful mental health clinic. The quality of your clinicians and support staff directly impacts the level of care and services you can provide to your patients. When assembling your team, it is essential to prioritize both clinical expertise and a genuine passion for mental health treatment.

Start by identifying the core roles you need to fill, such as psychiatrists, psychologists, licensed therapists, and mental health counselors. Seek out professionals with advanced degrees, specialized training, and a track record of delivering exceptional patient outcomes. Additionally, consider incorporating complementary practitioners, such as social workers, nutritionists, and holistic wellness experts, to offer a comprehensive, integrated approach to mental health care.

Beyond the clinical team, you will also need to hire administrative staff to handle patient intake, scheduling, billing, and other essential operational tasks. These individuals should possess strong organizational skills, attention to detail, and a genuine commitment to providing exceptional customer service.

  • Aim to build a diverse team that reflects the demographics of your target patient population, ensuring cultural competence and inclusive care.
  • Offer competitive compensation and benefits packages to attract and retain top talent in the mental health field.
  • Invest in ongoing professional development and training to keep your team's skills and knowledge up-to-date with the latest evidence-based practices.

According to the U.S. Bureau of Labor Statistics , the mental health industry is expected to experience a 22% growth in employment between 2019 and 2029, much faster than the average for all occupations. This surge in demand underscores the importance of building a skilled and dedicated team to meet the increasing need for mental health services.

As you assemble your team, be mindful of the regulatory requirements and licensing standards specific to your state and local jurisdiction. Ensure that all clinicians and staff members are properly credentialed and adhere to the highest ethical and professional standards.

By investing the time and resources to build a qualified, passionate team, you will position your mental health clinic for long-term success, delivering exceptional care and support to the patients who entrust you with their mental health and wellbeing.

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Establish Strategic Partnerships and Referral Networks

Developing a robust referral network is crucial for the long-term success of Serenity Springs Mental Health Clinic. By forging strategic partnerships with other healthcare providers, the clinic can expand its reach, enhance patient access, and ensure seamless continuity of care for its clients.

One of the key steps in establishing these partnerships is to identify complementary healthcare professionals and organizations within the local community. This may include primary care physicians, counselors, therapists, support groups, and even local hospitals or community health centers. By aligning with these providers, Serenity Springs can create a comprehensive network that addresses the diverse needs of its patients.

To facilitate these partnerships, the clinic should reach out to potential collaborators, highlighting the unique value proposition and patient-centric approach of Serenity Springs. This may involve hosting joint events, participating in cross-referral programs, or even exploring opportunities for co-located services. By demonstrating the clinic's commitment to delivering exceptional care and prioritizing patient outcomes, Serenity Springs can position itself as a trusted partner in the local healthcare ecosystem.

Additionally, the clinic should consider developing strategic alliances with insurance providers, employee assistance programs (EAPs), and other relevant organizations. These partnerships can help expand the clinic's reach, streamline the referral process, and ensure that patients have access to the coverage and resources they need to access mental health services.

  • Engage in regular outreach and networking events to foster relationships with potential referral partners.
  • Explore opportunities for co-marketing, joint educational initiatives, or shared service offerings to strengthen partnerships.
  • Continuously monitor and evaluate the effectiveness of the clinic's referral network, making adjustments as needed to optimize patient outcomes.

By establishing a comprehensive network of strategic partnerships and referral sources, Serenity Springs Mental Health Clinic can position itself as a leader in the local mental health landscape. This collaborative approach not only expands the clinic's reach but also ensures that patients receive the holistic, personalized care they deserve, ultimately contributing to the clinic's long-term success and growth.

Devise a Comprehensive Marketing and Outreach Strategy

Developing a strategic and multi-faceted marketing and outreach plan is crucial for the success of the Mental Health Clinic . By effectively promoting the clinic's services, building brand awareness, and establishing a strong presence in the community, the business can attract a steady flow of patients and solidify its position in the local healthcare landscape.

To devise a comprehensive marketing and outreach strategy, the clinic should consider the following key elements:

  • Target Audience Identification: Thoroughly understand the clinic's target demographics, their unique needs, preferences, and pain points. This will enable the development of tailored marketing messages and channels that resonate with the audience.
  • Branding and Online Presence: Establish a strong, professional brand identity that reflects the clinic's values, expertise, and commitment to patient-centric care. This includes developing a visually appealing website, active social media channels, and consistent branding across all marketing materials.
  • Multichannel Promotion: Utilize a diverse range of marketing channels to reach the target audience, such as local print and digital advertising, search engine optimization (SEO), content marketing, community outreach events, and strategic partnerships with local healthcare providers and organizations.
  • Patient Referral Program: Implement a robust patient referral program that incentivizes current patients to recommend the clinic to their friends, family, and social networks. This can be a highly effective way to generate new leads and expand the clinic's patient base.
  • Ongoing Engagement and Retention: Maintain regular communication with existing patients through email newsletters, social media updates, and personalized outreach. This helps to foster a sense of community, build loyalty, and encourage repeat visits and referrals.
  • Allocate a significant portion of the clinic's marketing budget (e.g., 15-20% ) to ensure the effective implementation of the comprehensive marketing and outreach strategy.
  • Continuously monitor and analyze the performance of various marketing channels and tactics, and be prepared to adapt the strategy as needed to optimize results.

By implementing a well-designed marketing and outreach strategy, the Mental Health Clinic can effectively reach its target audience, build a strong brand reputation, and position itself as a trusted provider of high-quality mental health services in the local community.

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Mental Health Treatment Plans: Templates, Goals & Objectives

Mental Health Treatment Plans: Making Progress One Step at a Time

Part of effective mental health treatment is the development of a treatment plan.

A good mental health professional will work collaboratively with the client to construct a treatment plan that has achievable goals that provide the best chances of treatment success.

Read on to learn more about mental health treatment plans, how they are constructed, and how they can help.

Before you continue, we thought you might like to download our three Positive CBT Exercises for free . These science-based exercises will provide you with detailed insight into Positive CBT and give you the tools to apply it in your therapy or coaching.

This Article Contains:

What is a treatment plan a definition, goals and objectives of a treatment plan, how to create a treatment plan, technologies to support mental health treatment plans (incl. quenza), examples of mental health treatment plans, a treatment plan template, a take-home message.

At the most basic level, a mental health treatment plan is simply a set of written instructions and records relating to the treatment of an ailment or illness. A treatment plan will include the patient or client’s personal information, the diagnosis (or diagnoses, as is often the case with mental illness), a general outline of the treatment prescribed, and space to measure outcomes as the client progresses through treatment.

A treatment plan does many things, the most important of which include (Leahy, Holland, & McGinn, 2011; PHN, 2017):

  • Defining the problem or ailment
  • Describing the treatment prescribed by the health/ mental health professional
  • Setting a timeline for treatment progress (whether it’s a vague timeline or includes specific milestones)
  • Identifying the major treatment goals
  • Noting important milestones and objectives

This documentation of the most important components of treatment helps the therapist and client stay on the same page, provides an opportunity for discussion of the treatment as planned, and can act as a reminder and motivational tool .

A wide range of people can benefit from mental health treatment plans, including:

  • People living with a serious mental illness
  • People experiencing distress in one or more areas of life
  • Children, parents, and/or families
  • The elderly
  • Individuals
  • People with developmental disabilities
  • People experiencing sexual or gender identity issues
  • People being bullied and/or abused
  • Bullies and/or abusers
  • People in the criminal justice system
  • Employers and/or employees (Croft, 2015).

While people in similar circumstances with similar issues may have similar treatment plans, it’s important to understand that each treatment plan is unique.

There are often many different ways to treat the same problem – sometimes there are dozens of different paths that treatment could take!

No two treatment plans will be exactly the same, because no two people’s experiences are exactly the same.

What, Exactly, is in a Treatment Plan?

Mental Health Treatment Plans children

As noted earlier, all treatment plans are different – they are unique products of the discussions between a therapist and client, the therapist’s clinical knowledge, and the client’s shared experience.

Even in identical diagnoses in similar individuals, differences are bound to manifest in any or all of the following components:

  • History and Demographics – client’s psychosocial history, history of the symptoms, any past treatment information.
  • Assessment/Diagnosis – the therapist or clinician’s diagnosis of the client’s mental health issues, and any past diagnoses will also be noted.
  • Presenting Concerns – the problems or symptoms that initially brought the client in.
  • Treatment Contract – the contract between the therapist and client that summarizes the goals of treatment.
  • Responsibility – a section on who is responsible for which components of treatment (client will be responsible for many, the therapist for others).
  • Strengths – the strengths and resources the client brings to treatment (can include family support, character strengths , material support, etc.).
  • Treatment Goals – the “building blocks” of the plan, which should be specific, realistic, customized for the client, and measurable.
  • Objectives – goals are the larger, more broad outcomes the therapist and client are working for, while multiple objectives make up each goal; they are small, achievable steps that make up a goal.
  • Modality, Frequency, and Targets – different modalities are often applied to different goals, requiring a plan that pairs modalities, a frequency of sessions, anticipated completion date, etc., with the respective goal.
  • Interventions – the techniques, exercises, interventions, etc., that will be applied in order to work toward each goal.
  • Progress/Outcomes – a good treatment plan must include space for tracking progress towards objectives and goals (Hansen, 1996)

The therapist and client will work together to get this information down on paper, with the therapist contributing his or her expertise in treatments and treatment outcomes, and the client contributing expertise in his or her own life and experiences.

Why Use a Treatment Plan?

Besides the obvious benefits that planning usually brings, there are a few specific advantages that mental health treatment plans impart to those who use them.

These benefits include:

  • Treatment plans provide a guide to treatment for both the therapist and client.
  • Treatment plans can reduce the risk of fraud, waste, abuse, and the potential to cause unintentional harm to clients.
  • Treatment plans facilitate easy and effective billing since all services rendered are documented.
  • Treatment plans can help smooth any potential bumps in treatment, especially if a client requires a kind of treatment the primary therapist cannot provide (e.g., a certain type of intervention or a prescription for medication) or must see a new therapist for some other reason (e.g., if the client or therapist has moved, or the therapist is on extended leave, PHN, 2017).

While treatment plans are quite popular in mental health treatment, it should be noted that not every therapist or clinician will use one. Treatment plans are not necessarily required to give or receive successful treatment, but they can be extremely helpful in facilitating a smooth and hassle-free treatment experience.

why use a treatment plan

If you or your client is committed to change but isn’t quite sure where to begin, this link  of potential goals can spark a useful discussion about where to go from here.

Goals are the broadest category of achievement that clients in mental health counseling work towards. For instance, a common goal for those struggling with substance abuse may be to quit using their drug of choice or alcohol, while a patient struggling with depression may set a goal to reduce their suicidal thoughts.

In general, these goals should be realistic – they should be reasonable, given the client’s general experience and hopes for the future.

Objectives are basically goals broken into smaller pieces – many similar or subsequent objectives will make up a goal.

For example, an objective for an individual with extreme anxiety may be to take 10 steps outside their front door. The next objective may be to make it to the neighborhood market, or up to 30 steps outside their front door.

mental health hospital business plan

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There are many resources out there on how to create a mental health treatment plan – there’s even a WikiHow page on the subject!

This checklist is an especially good resource for treatment planning, due in part to how brief and to-the-point it is. The checklist breaks down treatment plans into five sections: Problem Statements, Goals, Objectives, Interventions, and General Checklist.

The checklist items are presented by section as follows:

Problem Statements

  • Do problem statements reflect the six problem domains? 1 – Medical status 2 – Employment and support 3 – Drug/Alcohol use 4 – Legal status 5 – Family/Social status 6 – Psychiatric status
  • Are problem statements written in behavioral terms?
  • Are problem statements written in a non-judgmental and jargon-free manner?
  • Are problem statements based on priority needs?

What does the client want to achieve during treatment?

  • Do goals address the problem statements?
  • Are the goals attainable during the active treatment phase?
  • Would the client be able to understand the goals as written?
  • Would both the client and the treatment program find these goals acceptable?
  • Has the client’s stage of readiness to change been considered in the goal statements?

Counseling treatment planning – Dr. Todd Grande

What will the client say or do? Under what circumstances? How often will he/she say or do this?

  • Do objectives address the goals?
  • Are the goals SMART? o Specific – Are specific activities included? Could the client understand what is expected? o Measurable – Can change or progress toward meeting the objectives be documented/evaluated? o Attainable – Can the client take steps toward meeting the objectives? o Realistic – Can the client meet the objectives given their current situation? o Time-Limited/Timely – Is the time frame specified for the objectives?
  • Has the client’s stage of readiness to change been considered in the objectives?

mental health hospital business plan

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Interventions

What will the counselor/staff do to assist the client? Under what circumstances?

  • Do interventions address the objectives?
  • Are the interventions SMART (Locke & Latham, 1990)? o Specific – Are specific staff persons responsible for assisting client/providing service? o Measurable – Will the counselor/treatment program be held accountable for the services? o Attainable – Do interventions reflect the level of care available or are outside referrals used when needed? o Realistic – Do the interventions reflect the level of functioning or functional impairment of the client? o Time-Limited/Timely – Is the time frame specified for the interventions?
  • Has the client’s stage of readiness to change been considered in the interventions (Rollnick, Heather, Gold, & Hall, 1992)?

General Checklist

  • Is this treatment plan individualized to fit the client based on their unique abilities, goals , lifestyle, socio-economic status (SES), work history, educational background, and culture?
  • Are the client’s strengths incorporated into the treatment plan?
  • Has the client (and significant others) participated in developing this treatment plan?
  • Is the plan dated and signed by all who participated in developing this treatment plan?

Not every treatment plan will call for each of these items. This is fine since every treatment plan is as individual as the client treated, but it should be noted why the item does not apply.

When each item is “checked” off the list (or addressed in writing if it is not applicable), the treatment plan is likely a good one – or, at least, it has the basics of a good treatment plan!

If you work with children and would like some tips on preparing a good treatment plan for a young client, check out the Pennsylvania CASSP Training and Technical Assistance Institute’s publication on this subject here .

Quenza Depression Inventory

However, therapists are increasingly leveraging the benefits of technology in creative ways to help develop, execute, and evaluate mental health treatment plans using a blended care approach.

Blended care involves the provision of psychological services using telecommunication technologies.

Among these technologies are many digital platforms that therapists can use to supplement real-time therapy sessions to help accomplish the steps included in mental health treatment plans.

For example, using a blended care platform such as Quenza , a therapist may carry out some of the initial steps in the assessment/diagnosis phase of a treatment plan, such as by inviting the client to complete a digital diagnostic questionnaire.

Likewise, the plan may incorporate various psychoeducational interventions which can be delivered digitally, such as guided meditations, reflection exercises, or self-paced learning modules.

A therapist may even use these tools following the conclusion of a client’s in-person treatment as part of a follow-up, such as to assess whether a client has remained psychologically well a few months down the line or requires additional support.

These are just a few ideas for how you might use a blended care tool such as Quenza to help carry out some steps in a mental health treatment plan.

treatment plan general checklist

This sample treatment plan is for a young Medicaid recipient struggling with symptoms of depression and suicidal thoughts.

This treatment plan is written for the treatment of a man suffering from schizoaffective disorder who is experiencing side effects from his medication.

If you’d like to see more, this website has a ton of useful example treatment plans and templates.

mental health hospital business plan

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As noted earlier, one template will not cover all of the possibilities for a client’s treatment plan, but this template  can at least provide a starting point.

Feel free to rearrange, remove, and add as needed, but make sure to properly cite the source if you use it for profit or publish it somewhere (source information is at the bottom of the template).

In this article, we’ve discussed the purpose and general description of a mental health treatment plan.

We hope you have a better idea of how treatment plans work, why therapists use them, and how they can help individuals struggling with mental health problems.

Have you ever created a mental health treatment plan? Have you ever had a mental health treatment plan created for you? Let us know in the comments!

As always, thank you for reading!

We hope you enjoyed reading this article. For more information, don’t forget to download our three Positive CBT Exercises for free .

  • Croft, H. (2015). What is a mental health treatment plan? Why is it important? GoodTherapy. Retrieved from https://www.healthyplace.com/other-info/mental-illness-overview/what-is-a-mental-health-treatment-plan-why-is-it-important/
  • Hansen, M. (1996). Writing effective treatment plans: The Pennsylvania CASSP model . Retrieved from http://www.ccbh.com/pdfs/Providers/healthchoices/articles/TreatmentPlans.pdf
  • Leahy, R. L., Holland, S. J., & McGinn, L. K. (2011). Treatment plans and interventions for depression and anxiety disorders. New York, NY: Guilford Press.
  • Locke, E. A. & Latham, G. P. (1990). A theory of goal setting and task performance. Upper Saddle River, NJ: Prentice-Hall.
  • PHN. (2017). Mental health treatment plans: A guide for health professionals working in general or private practice.  Retrieved from https://www.nwmh.org.au/sites/default/files/2017-06/Mental%20Health%20Treatment%20Plans%20North%20Western%20Melbourne%20PHN.pdf
  • Rollnick, S., Heather, N., Gold, R., & Hall, W. (1992). Development of a short ‘readiness to change’ questionnaire for use in brief, opportunistic interventions among excessive drinkers. British Journal of Addiction ,  87 (5), 743-754.

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What our readers think.

JORGE LEIVA

I have been looking how to Create a Treatment Plan, so here are many resources out there on how to create a mental health treatment plan, thanks so much.

Lourdes Barrera

Hi, thank you so much for your article. It is clear and very helpful. However, I have some questions related to PSR master treatment plan. Then, PSR groups are based for example MDD diagnosis, different specific problems but the same symptoms. When I do the PSR Master Treatment Plan, the Problem and Long term goal (client’s goal) is specific to each client BUT the objectives and intervention are the same for each participant in that group. I would like to have a consultation if you can help me with this topic. Thank you so much for your support.

Nicole Celestine, Ph.D.

Hi Lourdes,

Glad you enjoyed the article. I’m afraid we don’t offer individual consultations. However, if you’re looking for support, perhaps get in touch with the International Board for Certification of Group Psychotherapists , who offer customized training and consultations on these sorts of topics.

– Nicole | Community Manager

Dr. Ahmer Mehkri

Dear Courtney Ackerman, I am Dr. Ahmer Mehkri, Health Manager in Shell Oil Company – Saudi Arabia. I have no words to express my feelings about this wonderful article. Such a great & comprehensive study which explain everything & most important giving utmost importance & feeling of satisfaction to the client (employee). If you have any updates, please do contact me in my below contact details. Kind Regards.

loretta ann good

I am a grad student studying Marriage and Family Therapy, and I have been looking for models of treatment plans for one of my assignments, and this one will help me in putting it together. Thanks

Koskei josephat

Wouh! This item has been a blessing to me

Brittany Smith

Excellent article.

Kristina Cooper mft

Thank you for your excellent article.

Robin

Thank you for such a comprehensive and well organized article which is especially helpful for those of us new MSWs just going out into the field. A great compact refresher!

Gertrude

Thank you very much, this article was indeed very helpful.

Julia Seegars Truesdale

I am just beginning to break new ground in the world of counseling. I am currently pursuing a Masters Degree in Clinical Counseling to become an LPC. I need help!

Margaret

Thank you so much for sharing such valuable information, it is precisely stated. It’s good to be on such platformshort, it helps in enhancing our skills as mental health service providers. “Learning isome a process” Thank you once again.

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ProfitableVenture

Mental Health Counseling Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Medical and Healthcare

Mental Health Business ideas

Are you about starting a mental health counseling firm? If YES, here is a complete sample mental health counseling business plan template & FREE feasibility report.

Mental health counselors work as primary caregivers for their patients. Duties of a mental health counselors include conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals.

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Mental health counselors may work for a school, for a government department or an agency, as part of a social outreach agency or for another entity.

To start and run a successful mental health counselling business, you will first have to obtain your college degree in behavioral science (e.g., psychiatrist, psychology, counselling, social work, sociology) with workshops, certificate classes and symposia that fill voids in your areas of expertise like geriatric, pediatric, adolescent and other segments of society with special mental health needs and issues.

Take general business classes if time allows. If you intend starting this business, just make sure you conduct your personal research and acquire licenses required by state, city and/or community mental health agencies and authorities.

Take your time to draft a budget covering start-up expense. Writing a business plan will help you focus your practice’s future direction. Below is a sample mental health counseling business plan template that will help you successfully write yours without much stress.

A Sample Mental Health Counseling Business Plan Template

1. industry overview.

Mental health counselling business is part of the Mental Health and Substance Abuse Centers industry and the industry is made up of organizations that provide long-term residential care and treatment for patients with mental health and substance abuse illnesses.

These establishments offer long-term housing, supervision and counseling services. Please note that this industry does not include hospitals with inpatient and outpatient care or facilities that primarily provide services for adults with intellectual and developmental disabilities.

A close study of the Mental health and substance abuse Centers industry shows that in the last half a decade, the industry has grown consistently. Mental health counseling services are needed regardless of economic conditions, which insulate the industry from economic fluctuations.

Going forward, as people continue to be employed and regain a steady income, private health insurance will become more affordable, prompting consumers to seek mental health counseling services when needed.

The Mental Health & Substance Abuse Centers industry is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 8,658 registered and licensed Mental Health & Substance Abuse Centers and Counselors scattered all around the United States of America.

The industry is responsible for the employment of over 226,576 people. Experts project the industry to grow at a 3.4 percent annual rate within 2014 and 2019. It is important to state that there is no single organization that has a lion share of the market in the Mental Health & Substance Abuse Centers industry.

A recent report published by IBISWorld shows that over the past five years, Mental Health & Substance Abuse Centers in the US has grown by 5.0 percent to reach a revenue of $18 billion in 2019. In the same time – frame, the number of businesses have grown by 3.1 percent and the number of employees have grown by 3.6 percent.

Please note that the requirements to become a mental health counselor in all states in the US, include a master’s degree and a state license. Bachelor’s degree programs can be completed in a variety of fields and usually take 4 years to complete, and master’s degree programs in counseling take 2-3 years.

In order to become successful as a mental health counselor, you should be able to connect with people and constructively discuss their problems and issues. Excellent written and verbal communications skills and an analytical approach will serve you well in mental health counseling industry.

2. Executive Summary

Mind Pro® Mental Health Counseling Firm, LLP is a licensed counseling (private practice) firm that is specialized in helping her clients overcome their mental health challenges.

The scope of our business offerings covers areas such as conducting mental health assessments, developing individualized treatment plans, leading individual or group therapy sessions, running preventative mental wellness classes or workshops and making treatment referrals, online counseling services and retailing of self-help books and materials.

Our business will be located in between a well – populated residential estate and a business district in in Spring Valley – Nevada, United States of America. We are intentional in choosing this location because Nevada has the highest prevalence of mental illness and lowest access to care among youths. 2 out of 3 Nevadan adults with mental illness received no treatment.

According to MHAScreening.org, Nevada had the highest percentage of people who scored in the severe level for depression (33.72 percent). Nevada also had the highest rate of thoughts of self-harm and suicide reported among mental health screeners.

Mind Pro® Mental Health Counseling Firm, LLP is a client-focused and result driven mental health counseling organization that provides broad – based counseling at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will ensure that we work hard to meet and surpass all our clients’ expectations as it relates to their mental health and overall wellbeing whenever they hire our services.

At Mind Pro® Mental Health Counseling Firm, LLP, our clients’ overall best interest would always come first, and everything we do is guided by our values and professional ethics.

We will ensure that we hire professional and certified psychiatrist, psychologists, social workers and counselors with various skill sets who are experienced and passionate in helping our clients overcome their mental health challenges within record time.

Mind Pro® Mental Health Counseling Firm, LLP will at all times demonstrate her commitment to sustainability, both individually and as a mental health counseling organization, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ needs precisely and completely.

Mind Pro® Mental Health Counseling Firm, LLP is founded by Dr. John Lakewood and he will run the business with his business partner Dr. Mercy Williams. Dr. John Lakewood is a certified and renowned psychiatrist and mental health counselor.

He has over 20 years’ experience working with top government officials, corporate executives, celebrities and sports people in the United States of America.

3. Our Products and Services

Mind Pro® Mental Health Counseling Firm, LLP is going to offer varieties of mental health counseling services within the scope of the mental health and substance abuse industry in the United States of America.

Our intention of starting our mental health counseling business is to help our clients overcome their challenges, achieve their personal goals and improve their competence, capacity and productivity and of course to also make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.

Our service offerings are listed below;

  • Conducting mental health assessments and counselling
  • Developing individualized treatment plans
  • Leading individual or group therapy sessions
  • Running preventative mental wellness classes or workshops
  • Making treatment referrals
  • Online mental health counselling services
  • Retailing of self – help books and materials

4. Our Mission and Vision Statement

  • Our vision is to build a highly competitive and effective mental health counseling business that will become the number one choice for both individuals and corporate organizations in Spring Valley – Nevada and the whole of the United States of America.
  • Our mission is to provide affordable, professional and highly effective mental counseling services to a wide range of clients. We want to position Mind Pro® Mental Health Counseling Firm, LLP to become one of the leading mental health counseling brands in the industry in the whole of Spring Valley – Nevada, and also to be amongst the top 5 mental health counseling firms in the United States of America within the first 10 years of operation.

Our Business Structure

Mind Pro® Mental Health Counseling Firm, LLP, is a mental health counseling firm that intends starting small in Spring Valley – Nevada, but hopes to grow big in order to compete favorably with leading firms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.

At Mind Pro® Mental Health Counseling Firm, LLP, we will ensure that we hire people that are qualified, hardworking, creative, passionate, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff / partners and it will be based on their performance for a period of ten years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Principal Partner/Chief Executive Officer
  • Psychiatrist and Mental Health Counselors

Office Administrator

Accounting Clerk

  • Marketing Executives

Client Service Executive

5. Job Roles and Responsibilities

Principal Partner / Chief Executive Officer:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Psychiatrist and Mental Health Counselor

  • Work with individuals, groups and communities to improve mental health
  • Encourage clients to discuss emotions and experiences
  • Examine issues including substance abuse, aging, bullying, anger management, careers, depression, stress and suicide
  • Work with families
  • Help clients define goals, plan action and gain insight
  • Develop therapeutic processes
  • Refer clients to psychologists and other services
  • Take a holistic (mind and body) approach to mental healthcare
  • Handle any other duty as assigned by the Principal Partner / CEO.
  • Responsible for overseeing the smooth running of HR and administrative tasks for Mind Pro® Mental Health Counseling Firm, LLP
  • Regularly hold meetings with key stakeholders to review the effectiveness of the organizations’ Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Oversee the smooth running of the daily activities of Mind Pro® Mental Health Counseling Firm, LLP.

Marketing Executive

  • Identify, prioritize, and reach out to new business opportunities
  • Identifies development opportunities; follows up on development leads and contacts
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develop, execute and evaluate new plans for expanding increase sales
  • Document all customer contact and information
  • Represent Mind Pro® Mental Health Counseling Firm, LLP in strategic meetings
  • Help increase sales and growth for Mind Pro® Mental Health Counseling Firm, LLP
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides management with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for Mind Pro® Mental Health Counseling Firm, LLP
  • Serves as internal auditor for Mind Pro® Mental Health Counseling Firm, LLP.
  • Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the principal partners in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Receives parcels/documents for Mind Pro® Mental Health Counseling Firm, LLP

6. SWOT Analysis

Mind Pro® Mental Health Counseling Firm, LLP engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured mental health counseling business that can favorably compete in the highly competitive industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Mind Pro® Mental Health Counseling Firm, LLP. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mind Pro® Mental Health Counseling Firm, LLP;

Our essential strength lies in the power of our team; our workforce. We have a team of experts in the industry, a team with excellent qualifications and experience in mental counseling practice.

Aside from the synergy that exists in our carefully selected team and our strong online presence, Mind Pro® Mental Health Counseling Firm, LLP is well positioned in a community with the right demography of people with mental health challenges and we know we will attract loads of clients from the first day we open our doors for business.

As a new mental health counseling organization in Spring Valley – Nevada, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive mental health and substance abuse Centers industry; that is perhaps our major weakness.

  • Opportunities:

The mental health and substance abuse industry has grown in response to increased awareness of mental health and substance abuse issues.

So also, expanded federal funding for Medicare and Medicaid has benefited industry operators hence encouraging people with mental health challenges to seek the services of mental health counseling practitioners. As a standard mental health counseling organization, we are ready to take advantage of these opportunities.

Persons seeking treatment for mental health or substance use disorders have several options with regards to types of providers and treatment models.

As a result, mental health counsellors experience external competition from numerous sources, including from short-term inpatient and outpatient service providers in the Mental Health and Substance Abuse Clinics Industry. External competition is anticipated to remain high in 2019, posing a potential threat to operators in the industry.

7. MARKET ANALYSIS

  • Market Trends

The latest trend shows that the business opportunities and of course career outlook for mental health counseling is excellent, with the U.S. Bureau of Labor Statistics (BLS) projecting 23 percent growth from 2016 up to 2026. Job growth is expected because people are more willing to seek mental health help, and it is becoming a less expensive form of treatment.

So also, in the United States of America, Federal funding for Medicare and Medicaid has increased during the period as states have expanded Medicaid coverage to a greater number of low-income individuals. An increase in coverage enables more individuals struggling with substance use and mental illness to access industry services.

Currently, an estimated 41.9 percent of industry revenue is derived from Medicaid and Medicare reimbursement payments. In 2019, federal funding for Medicare and Medicaid is expected to increase, presenting a potential opportunity for the industry.

A notable trend in this industry is the influence of technology; the advent of technology is responsible for the increase in income generated by mental health counselors all over the world. With technology, it is now easier for mental health counselors to counsel their clients that are thousands of kilometers away from them.

Tools like video calling / Skype, YouTube, live chat and Webcast et al are being used by mental health counselors to counsel clients in different parts of the world.

8. Our Target Market

The target market for mental health counseling firms is all encompassing. Mind Pro® Mental Health Counseling Firm, LLP is a professional mental health counseling firm that is specialized in helping her clients with mental health challenges improve their competence, capacity and productivity.

Our target market as a mental health counseling firm cuts across people of different class and people from all walks of life.

We are coming into the mental health and substance abuse Centers industry with a business concept and company’s profile that will enable us work with the clients from different background and status. Below is a list of the clients that we have specifically design our mental health counseling services for;

  • People undergoing depression
  • Psychiatric patients
  • Drug addicts (Substance abusers)

Our competitive advantage

The mental health and substance abuse Centers industry is indeed a very prolific and highly competitive industry. Clients will only hire your services if they know that you can help them overcome their mental health challenges, and achieve their personal health goals.

It is the practice for mental health counselors to acquire as much certifications as it relates to their area of specialization; it is part of what will make them stay competitive in the industry

Mind Pro® Mental Health Counseling Firm, LLP might be a new mental health counseling firm in Spring Valley – Nevada, but our management team are licensed and highly qualified psychiatrists, psychologists and mental health counselors that can help our clients overcome their mental health challenges and achieve their personal health goal within a short period of time.

These are part of what will count as a competitive advantage for us. Aside from our robust experience and the expertise of our psychiatrists, psychologists, social workers and mental health counselors, we have a very strong online presence that will enable us counsel clients in different parts of the world from our online portals.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups mental health counseling businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Mind Pro® Mental Health Counseling Firm, LLP is established with the aim of maximizing profits in the mental health and substance abuse Centers industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.

Mind Pro® Mental Health Counseling Firm, LLP will generate income by offering the following mental health counseling services;

  • Retailing of self -help books and materials

10. Sales Forecast

One thing is certain, there would always be corporate organization (schools, rehab centers and clinics) and individuals who would need the services of mental health counselors. This is the major reason why the services of mental health counseling firms will always be needed.

We are well positioned to take on the available market in Spring Valley – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our mental health counseling business and our clientele base.

We have been able to examine the mental health counseling market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Mind Pro® Mental Health Counseling Firm, LLP, it is based on the location of our mental health counseling company and of course the wide range of mental health counseling services that we will be offering;

  • First Fiscal Year: $150,000
  • Second Fiscal Year: $300,000
  • Third Fiscal Year: $550,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiffer competitions amongst mental health counseling firms in the United States of America; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Mind Pro® Mental Health Counseling Firm, LLP.

We will also ensure that our clients overcome their mental health challenges in record time; we want to build a standard mental health counseling business that will leverage on word of mouth advertisement from satisfied clients.

Our goal is to grow Mind Pro® Mental Health Counseling Firm, LLP to become one of the top 5 mental health counseling organizations in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Spring Valley – Nevada but also in other cities in the United States of America.

Mind Pro® Mental Health Counseling Firm, LLP is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our mental health counseling firm by sending introductory letters alongside our brochure to mental health clinics, hospitals, rehab centers, corporate organizations, religious organizations, households and key stakeholders in Spring Valley – Nevada.
  • Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
  • Use friends and family to spread word about our mental health counseling firm
  • Post information about our mental health counseling firm on bulletin boards in places like schools, libraries, and local coffee shops.
  • Placing a small or classified advertisement in the newspaper, or local publication about our mental health counseling firm
  • Advertise our mental health counseling firm in relevant educational magazines, newspapers, TV and radio station.
  • Attend relevant mental health and substance abuse expos, seminars, and business fairs et al
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of Spring Valley – Nevada which is why we have made provisions for effective publicity and advertisement of our business.

Below are the platforms we intend to leverage on to promote and advertise Mind Pro® Mental Health Counseling Firm, LLP;

  • Place adverts on both print (community – based newspapers and health related magazines) and electronic media platforms
  • Sponsor relevant community – based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, Twitter, YouTube, Google + et al to promote our brand
  • Install our Billboards in strategic locations all around Spring Valley – Nevada.
  • Engage in roadshow from time to time in targeted neighborhoods around Spring Valley – Nevada
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of Mind Pro® Mental Health Counseling Firm, LLP and the services we offer
  • List our mental health counseling firm in local directories / yellow pages
  • Advertise our life mental health counseling firm in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our logo

12. Our Pricing Strategy

Generally, counseling and consulting services are billed on per hour billing rate and flat fees on a weekly or monthly basis. As a result of this, Mind Pro® Mental Health Counseling Firm, LLP will charge our clients flat fees except for few occasions where there will be need for us to charge special clients on hourly basis.

At Mind Pro® Mental Health Counseling Firm, LLP we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our clients at regular intervals.

We are aware that there are some clients that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such clients’ needs.

  • Payment Options

The payment policy adopted by Mind Pro® Mental Health Counseling Firm, LLP is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mind Pro® Mental Health Counseling Firm, LLP will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via mobile money
  • Payment via Point of Sales Machines (POS Machines)
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for mental health counseling services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

From our market research and feasibility studies, we were able to come up with the following financial projections and costing as it relates to establishing our mental health counseling business in the United States of America;

  • Business incorporation fees in the United States of America will cost – $750.
  • The budget for liability insurance, permits and license will cost – $3,500
  • Acquiring an office space that will accommodate the number of employees we intend employing for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
  • Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
  • The cost for accounting software, CRM software and Payroll Software – $3,000
  • Other start-up expenses including stationery – $1000
  • Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
  • Launching an official website will cost – $500
  • Amount need to pay bills and staff members for at least 2 to 3 months – $50,000
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
  • Miscellaneous – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (120,000) U.S. dollars to successfully set up a medium scale but standard mental health counseling firm in the United States of America.

Generating Funds/Startup Capital for Mind Pro® Mental Health Counseling Firm, LLP

Mind Pro® Mental Health Counseling Firm, LLP is a partnership business that will be owned by Dr. John Lakewood and he will run the business with his business partner, Dr. Mercy Williams. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings and sale of his stocks
  • Generate part of the startup capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $70,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Mind Pro® Mental Health Counseling Firm, LLP is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our mental health counseling services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Mind Pro® Mental Health Counseling Firm, LLP will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check : Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing a standard office facility in a good location plus reconstruction: In progress
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founders: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of Logo for the school: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the business: In Progress
  • Creating awareness for the business in Spring Valley – Nevada: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in various industries: In Progress
  • Book a Speaker

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How to Create a Mental Health Action Plan

mental health hospital business plan

The latest mental health figures paint a sobering picture.

According to data from the National Alliance on Mental Illness , 23% of U.S. adults experienced mental illness in 2021. Additionally, suicide rates increased approximately 36% between 2000 and 2022, according to the Centers for Disease Control and Prevention.

Meanwhile, drug use, sleep issues, and loneliness are primary issues contributing to poor mental health.

“We are in a mental health crisis in the country today; there is no question about it,” Dr. Marcos Iglesias, vice president and chief medical director at insurance firm Travelers, said Sept. 4 at a panel discussion in Denver hosted by Travelers Institute, the public policy division of Travelers. “We’ve separated mental health and physical health for too long. We need to talk about mental health in the same breath.”

Although there is good news in that people, collectively, are talking more about mental health than they have in recent years, many HR and other company leaders aren’t sure how to improve workers’ mental well-being.

[SHRM Toolkit: Creating a Mental-Health-Friendly Workplace ]

A Travelers survey of 100 small and midsize businesses with fewer than 500 employees in the Denver area released at the event, for example, found that although the vast majority of managers (88%) said they are concerned about their employees’ well-being, only one-third of respondents said they are confident when it comes to addressing their employees’ mental health.

But it’s not a hopeless situation, said Rich Ives, senior vice president, business insurance claims, at Travelers. There are several things organizations can do to address mental health issues in the workplace, experts said at the panel.

Utilize a number of tools. Mental health apps, licensed therapists and counselors, stress management programs, and overall care are all important tools in an employer’s arsenal.

Having various tools and resources available is essential because workers may need different tools for different circumstances.

“For example, if somebody is depressed … they’re not functioning in their home. They’re barely making it at work. That person doesn’t need an app,” Iglesias said. “That person needs a licensed mental health professional to evaluate them, to diagnose them, to put them on a treatment regimen that’s going to help them.”

On the other hand, someone dealing with stress might not need a psychiatrist, he said. They may benefit instead from an app, a book, or another educational resource, along with skills to help deal with stress.

Know your workforce. Every workplace is different, explained Les Kertay, a clinical psychologist and adjunct professor of psychology at the University of Tennessee at Chattanooga. For example, younger workers are more open about talking about mental health than their older counterparts. And certain industries have more stress than others or require employees to work long hours, which contributes to mental health issues.

Encourage mental health screenings. Dr. Kathryn Mueller, a professor of physical medicine and rehabilitation at the University of Colorado School of Medicine in Aurora, said that physical ailments can be manifested by mental health issues and that organizations should encourage workers to get screened for mental health issues so they get appropriate care and treatment when needed.

Show you care. According to the American Psychological Association , 92% of employees said working for an organization that values their well-being is important to them. But Ives noted that many employees do not feel cared about. “You have to let your folks know that you care,” he said.

But Kertay added that while it’s important to let employees know that you care, it’s not going to mean anything if they don’t think it’s genuine.

“If your workforce doesn’t believe you, it’s not going to be helpful,” he said.

Know the signs of mental health problems. It’s not an employer’s—or co-worker’s or family member’s—job to diagnose an illness, Iglesias said, but it’s important to know some of the signs that indicate a person may need help. Do they seem down or blue? Do they appear stressed and anxious? Are they tired all the time?

“Those things are signs that that individual is struggling,” Iglesias said. “You’re just there to pick up on some of these signs and point that individual to resources that you probably have, whether it’s in your company or out in the community.”

Think about remote workers. With more employees now working remotely, it can be hard to gauge how workers are feeling. Instead of guessing, employers and managers should create more opportunities to check in with remote workers .

Consider people’s workload. Mental health resources are all well and good, but a lot of employee stress is driven by work, Kertay said.

[SHRM Research: Work Is Negatively Impacting Employees’ Mental Health ]

“We keep wanting to throw resources at individual people, but part of it is how work gets done. Let’s face it—what's happened in the last 50 years has been we do more and more work with fewer and fewer people,” he said. That often results in stress and burnout.

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Weekend Appointments Available!

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Let's work together to improve your mood and daily life!

I offer Mental Health Counseling for: 

Major and Seasonal Depressive Disorders

Generalized Anxiety and Frequent Panic Attacks

Post Traumatic Stress Disorder

Military and First Responder Trauma

Religious, Spiritual and Existential Crisis 

Grief, Bereavement, and Adjustment Disorders

Chronic Negative Self-Talk and Low Self-Esteem

Distress Associated with Autoimmune Disorders

about    Cheryl McGill, LPC

"Sounds great! But, Who are you?"

I'm a Licensed Professional Counselor in the state of Idaho. I utilize Dialectical Behavior Therapy and Cognitive Behavior Therapy to help clients build effective coping strategies for a variety of mental health disorders.  I've earned a Master's degree in Clinical Mental Health Counseling with a specialization in working with Military Personnel and Veterans. I have worked professionally in the field of emotional support and life enhancement since 2017. 

1D29FD56-D991-4425-8380-2C00AB50AC33.jpeg

What Counseling looks like

​ Initial Intake Session:

We'll discuss the symptoms you're experiencing and how long these have been present

I'll ask you about the ways you've been coping with your presenting symptoms and what's been working and what hasn't

We'll explore your family history of mental health and your personal medical history relating to your symptoms

Together, we will develop a personalized treatment plan based on the severity of your symptoms and your goals for treatment 

​ Ongoing Treatment Sessions:

We'll talk about your experiences since your last session and what your symptoms were like

I'll challenge any ongoing beliefs or thought patterns that interfere with your treatment progress

Together,   we will practice and role play coping skills and continue to build on strengths

We'll explore any adjustments to your treatment plan that may be needed based on your progress toward your overall treatment goals

Frequently Asked Questions

What is Depression?

Depression can manifest differently for everyone and isn't always expressed in the same way. Yet, there are symptoms that represent "Depression" such as:

feeling sad, empty, or hopeless for most of the day and nearly everyday

experiencing a significant lack of interest or pleasure in most, or all, activities throughout the day

loss of appetite or overeating

inability to sleep or sleeping too much

moving noticeably slower that usual

excessive fatigue

difficulty concentrating or making decisions

feelings of worthlessness or thoughts of suicide

What is a Panic Attack?

While panic attacks are not a mental health disorder in itself, they often occur as a manifestation of intense emotional response related to other mental health disorders such as anxiety, trauma, stress, depression, and substance use.

Symptoms of panic attack include: pounding heart, sweating, shaking, shortness of breath, sensation of choking, chest pain, nausea, feeling dizzy or light-headed, numbness, chills, heat, feeling detached from reality, a sense of losing control, and fear of dying.

What is Anxiety?

Anxiety is noted as experiencing excessive and uncontrollable worry, apprehension, and fear for more days than not for at least six months. Symptoms include:

feeling restless or on edge

being easily fatigued

mind going blank 

feeling irritable or easily agitated

muscle tension difficulty relaxing

difficulty falling asleep or staying asleep

Do you prescribe medications for depression or anxiety?

No. Medications need to be prescribed by your medical provider. I can work collaboratively with your provider to monitor your progress with prescribed medications and identify any potential side effects you may experience.

Do you take insurance?

No. There are several benefits to clients for not accepting insurance. Some benefits include not being limited to the number of sessions you can attend and not having a diagnosis on your medical record. However, I accept HSA cards and can provide a Superbill for clients to submit to their insurance provider for reimbursement of out-of-network treatment. I offer a Military discount for active duty members and Veterans. 

Individual Counseling

When symptoms related to mental health are interfering with daily functioning, it's time to identify what's contributing to the problem and develop effective tools to cope. With time, you can learn, practice, and utilize these tools to improve your mood and your daily life.

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Moscow Optimizes Mental Health Care, 3 Hospitals for 12 Million People

Moscow 'optimizing' mental health facilities

As a result of the reforms, medics fear Moscow and its 12 million residents will be left with just three mental hospitals. “This is simply ridiculous,” says Yury Savenko, president of the Independent Psychiatric Association. “It isn’t even close to being enough for a metropolis like Moscow,” reports The Moscow Times.

An especially beloved hospital No. 12 will be merged with the larger Solovyov Neuropsychiatric Center.

“They were real professionals, saving lives there,” says Yelena Kostyuchenko, a reporter for the Novaya Gazeta newspaper, who is a former patient. “Their doctors knew how to deal with people in grief, people in shock. They treated victims of terrorist attacks, prevented many suicides, and dealt with post-traumatic stress disorder in people returning from war,” again reports The Moscow Times.

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Brighton and Hove News

NHS chiefs plan to switch dementia beds for acute mental health care

Mill View nurse struck off after failing to flag up patient’s bomb and napalm fantasies

Mill View Hospital - Picture by Paul Gillett / www.geograph.org.uk

Councillors and health watchdogs are being asked to share their views on changes to specialist inpatient dementia services in Brighton and Hove.

Members of Brighton and Hove City Council’s Health Overview and Scrutiny Committee – which includes representatives of Healthwatch, the Older People’s Council and the community and voluntary sector – will look over NHS Sussex’s plans to “transform the service”.

Sussex Partnership NHS Foundation Trust is working with NHS Sussex to reduced demands for inpatient dementia beds in Brighton and Hove and increase the number of acute mental health beds in response to need.

A report to the committee, which is due to meet next Monday (16 September), said that Brighton and Hove had a “robust network” of community-based dementia services providing mental health support and dedicated home care.

The 10-bed Brunswick ward at Mill View Hospital, in Hove, serves patients from across Sussex and some from Brighton and Hove.

An analysis of admissions found that two out of three admissions a month were for patients from East or West Sussex rather than Brighton and Hove.

But the trust said that there was more demand for acute mental health inpatient care rather than dementia beds so it was working with the Sussex Integrated Care Board on changing Brunswick ward into a 15-bed acute mental health ward.

NHS Sussex data showed that Brighton and Hove generated almost a quarter of adult mental health bed referrals in the county, resulting in longer waiting times than for the rest of Sussex.

People living with dementia requiring inpatient care would be served by the trust’s hospitals in Worthing and Uckfield.

Worthing currently has the highest proportion of dementia beds with 30 at the Forget Me Not Unit at Swandean Hospital which was a finalist in the National Dementia Care awards last year.

The report said: “While these changes will result in a net gain of 15 adult acute mental health beds in Brighton and Hove, they will also lead to the removal of 10 inpatient dementia beds within the city.

“While the city experiences relatively low demand for inpatient dementia beds, there is a pressing need for adult acute mental health beds.

“Therefore, this increased capacity is likely to benefit a greater number of the city’s residents and reflects the population need.

“Additionally, these changes aim to facilitate a shift in dementia services countywide towards a best-practice model, prioritising community-based care for people living with dementia.”

Brighton and Hove has a relatively young population compared with East and West Sussex. Of the 292,000 people living in the city, 13.5 per cent are 65 and over, compared with 26.1 per cent in East Sussex and 23.3 per cent in West Sussex.

In 2022-23, there were more than 37,000 people with depression in Brighton and Hove, or 13.4 per cent of the population, and almost 4,500 people, or 1.36 per cent, with other mental health problems.

People with dementia are a much smaller proportion of the population in Brighton and Hove, with just under 2,000 or 0.58 per cent. East Sussex has 6,268 people with dementia (1.1 per cent) and West Sussex 9,215 (1 per cent).

The report said that the age-related differences highlighted how Brighton and Hove’s younger population had a higher proportion of people with other mental health issues. The trust aims to increase community support for people with dementia.

The council’s Health Overview and Scrutiny Committee is due to meet at Hove Town Hall at 4pm next Monday (16 September). The meeting is scheduled to be webcast on the council’s website.

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‘Kashchenko’: Moscow’s most famous psychiatric hospital

mental health hospital business plan

As Moscow grew, the Preobrazhenskaya Hospital (the first psychiatric clinic) couldn’t treat all the arriving patients anymore. This fact made local psychiatrists quite concerned. They asked Nikolai Alexeyev, the city mayor, for help. In 1889, he organized fundraising to solve this problem. At first, the mayor only wanted to expand the Preobrazhenskaya Hospital, but then, he decided that Moscow needed a second clinic with 300 new beds.

The Alexeyev Psychiatric Clinical Hospital.

The Alexeyev Psychiatric Clinical Hospital.

A commission of psychiatrists and city officials, headed by Alexeyev, decided to build the new clinic on the territory of the former Beketov manor. In the middle of the 19th century, merchant Kanatchikov bought these lands and named them ‘Kanatchikova dacha’, which then stuck to the hospital itself.

N. A. Alekseyev, 1880s.

N. A. Alekseyev, 1880s.

Famous psychiatrist Viktor Butske designed the plan of the future clinic: it had to be a complex of distant two-floor pavilions joined with warm passages for doctors. This complex had a ‘U’-shape and was divided into two halves - for men and women. The departments were located at the sides of the central administrative building. This plan left a lot of free space on the territory, as Butske understood that the complex would, most likely, be expanded later.

Viktor Butske, the plan developer and first head of the Alexeyev hospital.

Viktor Butske, the plan developer and first head of the Alexeyev hospital.

The construction began in 1890. The first half of the red and white brick complex started operating in 1894 and, in two years, the second was opened. In the following several years, the clinic was expanded with extra departments (for example, for chronically ailing people). It’s remarkable that practically all the money for the building was donated by rich Muscovites encouraged by Nikolai Alexeyev. The mayor, meanwhile, was shot and killed in 1893. Experts then found out that his killer had a mental disorder… And the new hospital was named in honor of Alexeyev.

The administrative building of the hospital, 1913.

The administrative building of the hospital, 1913.

When the first half was opened, Viktor Butske became the head of the hospital. He was a supporter of the ‘no-restraint’ system. That’s why straitjackets were never used in Alexeyev Hospital - the doctors wrapped aggressive patients into wet bed sheets to calm them down. Butske understood that the atmosphere mattered. Each department had its own garden. All the wards were well-furnished, except the ones for the violent. He made sure all the staff respected the ill and were kind to them. At first, the hospital used some isolation rooms and kept window screens in the wards for violent patients, but these measures had disappeared completely by 1903.

 A living room in the women’s ward, 1904-1906.

A living room in the women’s ward, 1904-1906.

As the number of patients grew, Butske had decided to let some of them live and work out of the clinic and organized the system of patronage. In 1900, he started to relocate some patients into families living in the villages near Moscow (for example, Troparyovo and Belyayevo, which are now parts of the city). Of course, the hospital staff kept supervising such patients. Butske knew that the patronage would do well: while he worked at the Preobrazhenskaya hospital, a friend of his was declared to have an incurable mental disorder. The doctor put his friend with a peasant family and it helped a lot to fight the illness.

The pool room in the department for the chronically ailing, 1904-1906.

The pool room in the department for the chronically ailing, 1904-1906.

Butske was replaced by another remarkable psychiatrist named Pyotr Kashchenko in 1904. The new hospital head kept developing the ideas of the ‘no-restraint’ system. The patients were also allowed to receive visitors. One of the doctors remembered that Leo Tolstoy once came to see someone there. Kashchenko did his best to destigmatize the patients with mental disorders and to socialize them. He already had some experience of applying work therapy and, in 1905, a new building for workshops and entertainment was built for the hospital.

The sewing workshop room in the women’s ward, 1904-1906

The sewing workshop room in the women’s ward, 1904-1906

When the Russian Revolution of 1905 started, Kashchenko organised medical brigades to help injured revolutionaries. At the time, he was too respected to be punished for his political views. The Soviet administration then honored the doctor for his deeds: In 1922, they renamed the Alexeyev Hospital after Kashchenko, though he had left for St. Petersburg in 1907. Unfortunately, during the Soviet period, people were still afraid of psychiatric hospitals (because of repressions) and of people with mental disorders, so the name of the great doctor received negative associations.

 Pyotr Kashchenko.

Pyotr Kashchenko.

During World War II, Kashchenko Hospital also received soldiers with craniocerebral injuries. Due to medication shortage, they were often treated with electroshock therapy - a notorious method that causes scientific disputes, though its efficacy is proven.

In the Soviet era, the hospital admitted some famous people. Joseph Brodsky spent some time there between 1963-1964 to undergo a psychiatric examination. The poet didn’t have an official job and was accused of “social parasitism”. Brodsky insisted that writing poetry was real work, but the court didn’t agree. The friends of the poet hoped the examination would save him from punishment, but it didn’t: In March 1964, Brodsky was condemned to compulsory labor In the Arkhangelsk area (990 km north-east of Moscow) and, later, had to emigrate. In the Kaschenko Hospital, Brodsky wrote a dark and hopeless poem titled ‘Novy God na Kanatchikovoy Dache’ (“New Year at Kanatchikova Dacha”).

Joseph Brodsky, 1972.

Joseph Brodsky, 1972.

Famous Soviet bard and singer Vladimir Vysotsky also spent some time at the Kashchenko Hospital to treat his alcoholism. He described the life of the patients in a humorous song called ‘A letter to the editors office of ‘Obvious-Incredible’ TV program from an insane asylum - Kanatchikova Dacha’. There is an interesting detail: Vysotsky sings that the chief doctor named Margulis finally banned watching TV at the hospital. This is a fictional character. The real chief doctor at the time was Valentin Morkovkin, who later complained that he had done a lot for Soviet psychiatry (he had published many scientific works), but had finally become known as a doctor who tried to help Vysotsky.

Vladimir Vysotsky, 1978.

Vladimir Vysotsky, 1978.

In 1994, the hospital was renamed back to the ‘Alexeyev Psychiatric Clinical Hospital’. Nowadays, it has numerous departments, branch clinics and even a radio station called ‘Zazerkalye’ (“Through the Looking Glass”) and runs psychiatric education courses. The primary principles of freedom and respect are still kept there. And even though the hospital’s name has changed, the people still commonly call it ‘Kashchenko’.

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Magellan Health Launches Mental Wellbeing App for Young People

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Sep 05, 2024, 07:00 ET

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Powered by BeMe Health, the mobile app provides resources and support to address real-time mental health needs for teenagers and young adults

FRISCO, Texas , Sept. 5, 2024 /PRNewswire/ --  Magellan Health, Inc. , a leader in behavioral health and related services, today announced the launch of a Teen Mental Wellbeing app to support the mental and emotional wellbeing of teenagers and young adults ages 13-22. Powered by BeMe Health's advanced digital health platform, the app helps promote self-understanding, builds resilience, and supports the journey to mental wellbeing through science-backed digital tools and evidence-based approaches.

"The mental health crisis among young Americans has far reaching effects, also impacting the wellbeing of parents which can lead to reduced productivity and increased healthcare costs for their employers," said Caroline Carney , M.D., president of behavioral health and chief medical officer of Magellan Health. "Magellan and BeMe are uniquely positioned to support young people, alleviate the stress of parents and caregivers and offer a turnkey solution for employers to integrate into their benefit offerings."

The Teen Mental Wellbeing app, powered by BeMe, is designed to meet teens and young adults where they are – on their phones – in a fun and safe environment that offers evidence-based tools with live human connection to proactively manage their wellbeing. The app maximizes engagement and impact by addressing the real-time mental health and wellbeing needs of teens and young adults in a supportive space that recommends content tailored to their current mood, skill-building activities and personalized coaching via chat directly within the app. The app also incorporates several clinically validated screenings, including for depression and anxiety, that can triage participants to the interventions most appropriate for them.

Through the app, participants have 24/7 access to multiple crisis supports, powered by BeMe, that are responsive to their real-time needs and reinforced by their coaching team. Participants can also seek or be recommended to access virtual therapy sessions provided through Magellan's employee assistance program (EAP).

"We couldn't be more excited to collaborate with Magellan Health. Together, we will pioneer leading-edge tools that combine accessible, equitable, and evidence-based interventions with scalable human connection to support young people and their ever-changing mental health needs," said Nicki Tessler , PsyD, MBA, chief executive officer and co-founder of BeMe Health.

The mental wellbeing app for teens and young adults is available now to existing and new Magellan employer customers.

About Magellan Health: Magellan Health, Inc. supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan's customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit  MagellanHealth.com .

About BeMe Health:  BeMe Health  is a digital behavioral health company dedicated to delivering mental health interventions tailored specifically for teens. The BeMe platform provides anytime, anywhere access to engaging content, mood reflection, and skill-building activities, as well as 1:1 coaching and connections to clinical services and 24/7 crisis support when needed. BeMe was built for and by teens, with an active Teen Advisory Board ensuring the platform aligns with their lives, and its clinically validated approach uniquely meets teens where they are — on their phones — in a safe, secure, and fun environment. BeMe works with health plans, employers, and community organizations to provide a digital-first approach to interventional teen mental health. To learn more, please visit  www.beme.com  or find us on LinkedIn .

SOURCE Magellan Health, Inc.

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More mental health beds as Modbury Hospital celebrates 50th anniversary

The malinauskas labor government is delivering its commitment for 24 more mental health beds at modbury hospital, with a first look at the unit’s design revealed today..

The $44 million mental health rehabilitation unit, set to open in 2025, will be combined with a 20-bed older persons mental health unit in a single build – representing a total of 44 purpose-built new mental health beds at the hospital. The 24-bed unit will support adults who need longer stays in hospital for therapeutic and rehabilitative care, in a model that provides therapy in a specially designed living space to support daily activities. These additional mental health beds were committed by Labor during the 2022 election campaign following the former Liberal Government’s decision to close Woodleigh House, leaving Modbury Hospital with no adult mental health beds. This would be the new Woodleigh House, delivering 24 adult mental health beds in a brand-new building – more than doubling the mental health beds at Modbury Hospital. These additional mental health beds form part of the Malinauskas Labor Government’s historic $124 million commitment to build and open 72 new mental health rehabilitation beds through the establishment of 24-bed units at Modbury, The Queen Elizabeth Hospital and Noarlunga Hospital. Work has also commenced on the Government’s commitment to a Modbury Hospital Cancer Centre, introducing cancer services to the hospital for the first time, with concept designs underway. The Cancer Centre will include 12 chemotherapy chairs and outpatient consulting rooms to deliver cancer services closer to home for north-eastern suburbs residents. The Centre is expected to be complete in 2025. These updates come as the community celebrates 50 years of Modbury Hospital’s operations and commemorates the official conclusion of a major $98 million works package. The completed upgrades, designed and funded by the former Labor Government in December 2017, include a 26-bed short stay general medical unit, a 20-bed palliative care unit, expansion of the surgical unit, and additional emergency care unit.

Attributable to Peter Malinauskas

We put mental health firmly on the agenda during the election campaign with our $124 million commitment to build and open 72 new mental health rehabilitation beds at three metro hospitals including Modbury. It’s great to see work starting on this vital project, adding to the large investment Labor has made to Modbury Hospital over many years, including the recent $98 million redevelopment. These additional mental health beds – as well as our important cancer centre build at Modbury – will ensure residents in Adelaide’s north-east can get the specialist care they need closer to home.

Attributable to Chris Picton

We recognise the important role Modbury Hospital plays in the lives of this community. While the previous Liberal Government went to the election with no plan for this vital hospital aside from the closure of Woodleigh House, we committed to delivering cancer services in the North East for the first time, and to more than doubling the mental health beds at Modbury. We are delivering on that commitment and it’s fantastic to progress these important projects to deliver services to the community that don’t exist currently. The 24-bed Mental Health Rehabilitation Unit will provide a longer stay service where patients have the time and space they need for rehabilitation and therapy. It will reduce demand on acute mental health care services, so people are receiving the right care in the right place. The Cancer Centre is an investment that will enable patients requiring chemotherapy to have treatment closer to home.

Attributable to NALHN CEO Maree Geraghty

This is an exciting milestone in the history of Modbury Hospital and our staff and community look forward to watching these new services that will provide care to our patients in their own neighbourhood. We look forward to seeing the plans for cancer and mental health services take shape in the months ahead as we celebrate 50 years of Modbury Hospital and its impact on the community.

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COMMENTS

  1. Mental Health Business Plan

    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 ...

  2. Psychological Health Center Business Plan Example

    Executive Summary. 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 ...

  3. Mental Health Private Practice Business Plan Template

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

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

    We recommend budgeting for 20% less than whatever you come up with in your plan, at least until you get validation from real revenue. Expenses. Expenses = Facilities + Front Office + Back Office + Insurance. A basic rule of thumb for expenses is that they represent anywhere from 15-30% of total revenue for a solo practice.

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

    Make your business plan your own. You can personalize your business plan to address your personal work and productivity style. This part might help guide decisions like: • Establishing and maintaining boundaries with clients. • When you will take lunch breaks. • Whether you have a mentor you can consult. • How much time you need between ...

  6. Mental Health Private Practice Business Plan PDF Template

    Mental Health Private Practice Business Plan PDF Template

  7. PDF Putting Mental Health First Second Step Business Plan 2017-2019

    unity based mental health and wellbeing services. Our missionWe promote mental health and wellbeing. and communities to build brighter futures.Our vision for 2019Second Step will be delivering m. e community based services to people with mental health needs. We have extended, developed and honed our services to be more effective and efficient ...

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    Harmony Mental Health Center is currently seeking $650,000 to launch. The funding will be dedicated towards securing the office space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs.

  9. PDF Creating a Business Plan for a Community Health Center Capital Project

    BUSINESS. PLANNING, or the writing of a business plan, is the third and final component of an organization's planning process. The process usually begins with a mission (or, vision) statement. Mission statements are broad, sweeping declarations about the organiza-tion's vision and/or raison d'être.

  10. 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 ...

  11. 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). I recommend consulting with a local accountant and lawyer with experience working for other health care ...

  12. How to Start a Mental Health Business

    Check Your Zoning Regulations. When you create your business plan and choose the business type, you'll also need to decide whether you plan to offer in-person services, online services, or a combination of the two. If you have any type of in-person services you will need a physical office. Figuring out how to start a mental health business ...

  13. Business Plan Template for Mental Health Services

    Mental health clinics and organizations can use this Business Plan Template for Mental Health Services to effectively communicate their vision, goals, and strategies to secure funding and support for their services. First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space ...

  14. 9+ SAMPLE Mental Health Business Plan in PDF

    Furthermore, the mental health business plan could also contain important things such as a marketing analysis for the mental health facility, its marketing strategy, budget plan, and other details the involve the financial aspect of the establishment. Having one truly helps in securing the business altogether, and allows it to be sustainable in ...

  15. Crafting a Winning Mental Health Center Business Plan: 9-Step Checklist!

    In conclusion, developing a business plan for a mental health center is crucial for its success and sustainability. By following these 9 steps checklist, you can ensure that you have thoroughly researched the market, identified your target audience, and analyzed your competition. Additionally, defining your unique selling proposition, business ...

  16. How to Write a Business Plan for a Mental Health Clinic

    Starting a successful mental health clinic requires meticulous planning and preparation. This comprehensive 9-step checklist outlines the essential steps to take before crafting your business plan. From conducting thorough market research to assembling a qualified team of healthcare professionals, this guide will equip you with the necessary tools to establish a thriving mental health practice ...

  17. Mental Health Treatment Plans: Templates, Goals & Objectives

    Mental Health Treatment Plans: Templates, Goals & ...

  18. Mental Health Counseling Business Plan [Sample Template]

    A recent report published by IBISWorld shows that over the past five years, Mental Health & Substance Abuse Centers in the US has grown by 5.0 percent to reach a revenue of $18 billion in 2019. In the same time - frame, the number of businesses have grown by 3.1 percent and the number of employees have grown by 3.6 percent.

  19. How to Create a Mental Health Action Plan

    The latest mental health figures paint a sobering picture. According to data from the National Alliance on Mental Illness, 23% of U.S. adults experienced mental illness in 2021.Additionally ...

  20. Hospital Business Plan

    HospitalBusinessPlan - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online.

  21. Mental Health Counseling

    When symptoms related to mental health are interfering with daily functioning, it's time to identify what's contributing to the problem and develop effective tools to cope. With time, you can learn, practice, and utilize these tools to improve your mood and your daily life. $135 per Session. Mental Health Counseling in Moscow, Idaho.

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  23. Moscow Optimizes Mental Health Care, 3 Hospitals for 12 Million People

    Moscow Optimizes Mental Health Care, 3 Hospitals for 12 Million People.

  24. NHS chiefs plan to switch dementia beds for acute mental health care

    The report said: "While these changes will result in a net gain of 15 adult acute mental health beds in Brighton and Hove, they will also lead to the removal of 10 inpatient dementia beds within the city. "While the city experiences relatively low demand for inpatient dementia beds, there is a pressing need for adult acute mental health beds.

  25. 'Kashchenko': Moscow's most famous psychiatric hospital

    Follow Russia Beyond on Instagram. The Alexeyev Psychiatric Clinical Hospital was built to give mentally ill people help, peace and quiet, instead of old and cruel treatment measures. As Moscow ...

  26. Biden Administration Issues Rules Making Mental Health Care More Accessible

    MONDAY, Sept. 9, 2024 (HealthDay News) -- Beginning Jan. 1, Americans with private health insurance coverage should gain better access to mental health care, as well as care to help ease substance ...

  27. Magellan Health Launches Mental Wellbeing App for Young People

    FRISCO, Texas, Sept. 5, 2024 /PRNewswire/ -- Magellan Health, Inc., a leader in behavioral health and related services, today announced the launch of a Teen Mental Wellbeing app to support the ...

  28. Biden Administration Finalizes Rule to Strengthen Mental Health Parity Law

    The 2008 Mental Health Parity and Addiction Equity Act already requires insurers and corporate-backed health plans to provide access and payment structures for mental health care services on par ...

  29. Australia plans a minimum age limit for social media use

    Australia intends to set a minimum age limit for children to use social media, citing concerns about mental and physical health. The plan has sparked backlash from digital rights advocates who ...

  30. More mental health beds as Modbury Hospital celebrates 50th anniversary

    This would be the new Woodleigh House, delivering 24 adult mental health beds in a brand-new building - more than doubling the mental health beds at Modbury Hospital. These additional mental health beds form part of the Malinauskas Labor Government's historic $124 million commitment to build and open 72 new mental health rehabilitation beds ...