Behavioral Health Facility Development Case Study | BHCPNA

Case studies

Strategic planning

Midwest Behavioral Health Center

Turning a large existing property into a multi-service behavioral health campus.

Role
Founder and CEO
Location
Tecumseh, Michigan
Services
Adolescent residential, outpatient and autism day treatment
Status
Licensed and preparing to launch
Front entrance of the renovated Midwest Behavioral Health Center campus in Tecumseh, Michigan
The renovated campus in Tecumseh, Michigan

The campus

At launch readiness

  • FacilityAbout 200,000 sq. ft.Two-year renovation and outfitting complete
  • Adolescent program83 bedsInpatient and residential
  • Outpatient capacity400+ clientsBehavioral health, psychiatry and counseling
  • Autism day treatmentAbout 60 childrenPlanned census
  • Referral pipeline100+ a monthInpatient referrals from hospitals, providers and counties
  • Appraised real estate value$21 million

The opportunity

There's a shortage of appropriate adolescent behavioral health placements, and families often have to piece together outpatient and autism services from different places.

Instead of opening a single program, MBHC paired a large treatment campus with several services that share the same building, staff and infrastructure, giving it more ways to receive referrals and get paid.

What we did

  • Designed the business model

    Set the plan and phased rollout for the adolescent, outpatient and autism programs.

  • Led the redevelopment

    Coordinated the renovation, furnishing and occupancy readiness, and structured the operating company and real estate.

  • Built the leadership team

    Brought in senior clinical and operating leaders, including psychiatric and multi-state behavioral health experience.

  • Completed licensing

    Completed licensure and certificates of occupancy, and advanced state contracting, payer credentialing and referral partnerships.

  • Lined up financing options

    Developed debt, strategic equity and real estate options while weighing owner guarantees and control.

  • Built the operating framework

    Centered operations on patient safety, compliance, staff retention, revenue cycle discipline and clear performance measures.

Where things stand

WorkstreamStatus
Physical plantTwo-year renovation complete. Campus furnished and ready for occupancy.
Clinical programsAdolescent, outpatient and autism programs designed to work together.
LicensingFacility and program licenses and certificates of occupancy complete.
ReferralsHospitals, providers and county partners point to 100+ inpatient referrals a month.
Commercial payersCredentialing in progress.

This case study covers development and launch readiness. The campus was pre-revenue at the time it was written.

Find an underserved market and a building that can adapt, recruit experienced clinical leaders, secure licensing and payer access, then open in phases based on real demand.

A model that can be repeated, with fresh market, licensing and staffing research in each new state

Capabilities shown

  • Healthcare real estate redevelopment
  • Multi-service program design
  • Executive team building
  • Licensing and state contracting
  • Capital and partnership structuring
  • Launch readiness