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A business plan for starting a behavioral group practice.

A Lazarus1

  • 1Managed Healthcare Solutions, Lafayette Hill, PA, USA.

Behavioral Healthcare Tomorrow
|June 7, 1995
PubMed
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The solo behavioral healthcare practitioner model is declining, with group practices forming due to market trends. This article explores the financial aspects of establishing a four-member behavioral group practice.

Area of Science:

  • Healthcare Management
  • Behavioral Health Practice Administration

Background:

  • The landscape of behavioral healthcare is shifting from individual practitioners to group practices.
  • Market forces are driving consolidation and the formation of larger healthcare entities.

Purpose of the Study:

  • To examine the financial realities and key considerations for establishing a behavioral group practice.
  • To outline the essential components for forming a new group practice corporation.

Main Methods:

  • Review of market entry strategies for behavioral group practices.
  • Analysis of organizational structures.
  • Examination of expense line items.
  • Projection of cash flow for a hypothetical practice.

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Main Results:

  • Identification of critical financial factors in practice formation.
  • Outline of a hypothetical four-member behavioral group practice corporation's financial projections.
  • Discussion of market entry and organizational considerations.

Conclusions:

  • Forming a behavioral group practice involves detailed financial planning and strategic organization.
  • Understanding expense line items and cash flow is crucial for successful practice establishment.