Professional Learning Center

Reengineering the Business Model for NYC’s NFP Mental Health Clinics

The broad objective of this project is to help 15-20 behavioral health agencies, with budgets of $12 million and under, to fundamentally reengineer their business models and prepare them for future financial challenges due to changing Medicaid regulations.  This project was borne from the State Office of Mental Health's restructuring of Article 31 Mental Health Clinics (Part 599 regulations).  The new clinic model significantly alters the regulatory and reimbursement methodology for these clinics. 

The initial 16 participants selected were part of an earlier study which produced an exhaustive analysis using an OMH fiscal model.  The study showed that all 70 clinics in the study would lose money and the smaller clinics risked closure.

OPEN MINDS was retained by the Coalition of Behavioral Health Agencies, Inc. to identify and rank potential areas of collaboration among Coalition members. Specifically, the OPEN MINDS team was asked to provide research and consultative services and to facilitate the following:

  • Presentation on collaborative models and
  • trends in the field Brainstorming workshop session facilitation

The OPEN MINDS team provided information on a variety of collaborative options, including but not limited to:

  • Mergers and acquisitions
  • Shared staff
  • Group purchasing organizations
  • Administrative Service Organization models