Contract management behavioral health programs: are hospitals satisfied with their performance?

Many hospitals have opted to develop and operate inpatient behavioral health programs utilizing contract management providers. This article identifies key performance characteristics for such programs and summarizes the degree of performance satisfaction reported by 48 hospitals. Performance characteristics include bed occupancy, net income, contract management fees, marketing support, staffing ratios, and staff turnover. The survey data also compares bottom-line performance characteristics for groups of contract management programs rated most and least satisfactory in overall performance. The survey findings are used to develop contract negotiation strategy designed to shift greater accountability for program performance to contract management providers in order for hospitals to achieve maximum return from these programs.