Six-Month Behavioral Health Turnaround
Stabilizing a newly acquired, private equity-backed treatment provider.
- Role
- Turnaround leadership
- Client
- Private equity-backed substance use disorder provider
- Levels of care
- Detox, stabilization, residential and outpatient
- Timeframe
- Six months
The results
Within six months
- Reimbursement42% increaseReported, after the revenue cycle moved in-house
- Marketing and admissionsLower cost, more admissions
- Patient experienceHigher satisfactionReported, along with longer length of stay
- HandoffCompleted in six monthsTransitioned to ongoing leadership
The situation
After a recent acquisition, a private equity-backed treatment provider brought in executive leadership. It offered a full continuum of care, but it was struggling with regulatory findings, staff turnover, poor patient reviews and weak financial performance.
The services were there. The management structure and day-to-day discipline to run it well were not.
Before and after
| Area | Before | After six months |
|---|---|---|
| Regulatory | Red, orange and yellow accreditation findings and a regulatory improvement plan | Corrective action led against the findings, with compliance built into documentation, training and management routines |
| People and culture | Low staff satisfaction, high turnover, weak documentation and training | Leadership reorganized, training rebuilt, satisfaction surveys and retention programs in place |
| Patient experience | Very poor patient reviews, with room to improve continuity and length of stay | Higher patient satisfaction and longer length of stay |
| Financial | Inconsistent billing and a high cost per admission | Revenue cycle brought in-house, with a reported 42% increase in reimbursement |
| Management | No core KPIs and little accountability | KPIs in place for admissions, census, length of stay, cost per admission, staff, revenue and compliance |
Stabilize risk, build accountable leadership, restore discipline, improve the experience for patients and staff, and strengthen the business without lowering clinical or regulatory standards.
The turnaround mandate
What we did
Fixed regulatory problems
Led corrective action on accreditation findings and made compliance part of everyday documentation, training and management.
Rebuilt leadership and culture
Reorganized leadership roles, set clear expectations, rolled out training and added staff surveys and retention programs.
Put real KPIs in place
Tracked admissions, cost per admission, census, length of stay, patient experience, staffing, revenue cycle and compliance.
Brought billing in-house
Moved the full revenue cycle in-house and standardized billing, giving leadership better visibility and control.
Made marketing accountable
Outsourced marketing to a more accountable partner, cutting costs while increasing admissions.
Improved the patient journey
Tightened coordination and accountability across the patient experience, with reported gains in satisfaction and length of stay.
These methods carry over to other newly acquired, distressed or underperforming behavioral health organizations.
Capabilities shown
- Fast assessment under regulatory pressure
- Operational, clinical and financial turnaround
- Revenue cycle redesign
- Leadership restructuring
- Change management
- Clean handoff to ongoing leadership