A Collaborative Business Model for Level III'1

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A Collaborative Business Model for Level III.1

• ATTC Leadership Institute

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Christina Trenton LCSW-C, CAC-ADExecutive
Director, W House

• Member-Maryland Association of Alcohol Drug
  Continuing Care Facilities Association

Mentor Dr. Peter Luongo-Director Maryland
Alcohol and Drug Abuse Administration
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Individual Leadership Competencies Addressed by
this Project

• Strategic Thinking
• Decisiveness-Risk Taking
• Problem Solving

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Project Goal To create an entrepreneurial
response for Level III.1 in a competitive market
place.
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Recent Research

• The Journal of Substance Abuse Treatment in
  Octobers issue, published McClellan Kimberlys
  article The Business of Addiction Treatment A
  Research Agenda which discusses the challenges
  facing the nations substance abuse treatment
  system

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Recent Research .

• Corredoira and Kimberly wrote Industry
  Evolution through Consolidation Implications for
  Addictions Treatment . They cite major
  realignments in other industries to argue that
  the business of addictions treatment is likely to
  be transformed by a period of consolidation, in
  which a number of small, independent programs
  will be acquired by larger, better-capitalized
  and managerially more sophisticated enterprises.
  Not known is whether an industry-wide
  consolidation will lead to quality improvement
  through increased competition among larger
  providers, or if the larger providers are
  publicly traded quality will be subordinated to
  pressures to maintain or increase earnings and
  share price.

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Conditions Existing Currently

• Most halfway houses (Level III.1) in the State of
  Maryland are free standing entities
• Most are small (less than 30 beds)
• All struggle with cost containment
• All struggle with diversifying funding streams

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A Change in mindset.

• How does a small treatment agency respond
  strategically to the market forces discussed in
  the research?
• First and foremost we must change the way we
  think of ourselves!
• WE ARE A BUSINESS
• We MUST think like a BUSINESS

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How do we do this?

• Be confident that what is done on the management
  level is going to help at the client level
• In the field of addiction we have succumbed to
  the lazy undisciplined search for a silver bullet
• Be relentlessly curious!

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What if ?

• Core Values and Core Purpose is retained?
• Cultural and Operating Practices change?

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Implementation of Entrepreneurial Exploration

• MAADCCF convened a work group
• Processes were identified for change and
  re-engineering
• Exploration and development of collaborative
  business plan and strategic partnerships
• Areas for technical assistance identified
• Creation of clinically relevant protocols
• Creation of economically relevant business
  practices

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What if ????

• Partnership models were blended to create an
  entrepreneurial way of doing business?
• The risk of program closure could be minimized if
  collectively this level of care worked together
  to create a co-opt business model. This model
  can be mixed and matched to create both regional
  and statewide consortiums

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What if ???

• Business practices were re-engineered for
  collaboration? This could include collective
  purchasing of
• Health Insurance
• Liability, Directors Officers, Workmans Comp,
  Vehicle Insurance
• Criminal Background costs
• Purchasing-Food, Office Janitorial Supplies
  (negotiation of prices, triple the volume for the
  vendor)

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What if ??

• The creation of a labor pool of counselors (PRN)
• Could plug gaps regionally in service delivery
• Could be used during times of high census
• Could be used during times of illness, vacation
• The nursing and social work field have done this,
  why havent we?

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What if ?

• A labor pool of specialty positions was created
  to serve a region
• Clinical Supervisor
• Family Counselor
• Trauma Specialist
• Vocational Specialist

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Wrap up

• This project centered on how to answer the
  question of how small community based providers
  like halfway houses who dont provide a range of
  services can become and remain competitive in a
  changing market place.

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Conclusion

• Halfway houses can remain financially viable
  through the creation of collaborative business
  practices.
• This can include the coordination of
  administrative and fiscal functions which would
  allow halfway houses to qualify for contracts
  that usually go to larger, more diversified
  vendors.
• This model also gives participating agencies a
  broader reach greater service impact in terms of
  continuity of care and wraparound services.
  Overall, the creation of an entrepreneurial
  business model for Level III.1 providers will
  increase competitiveness in the behavioral health
  care market.