Preparing for Winter: Navigating Census Challenges and Financial Realities in Behavioral Health

By Dane Jones, CEO of Vital Solutions

As the leaves fall and winter approaches, it’s a critical time for substance abuse, mental health, and psychiatric treatment facilities to prepare for the seasonal shifts that inevitably impact census and revenue. Historically, census numbers tend to dip just before Thanksgiving and often remain lower through the first few weeks of the new year. This period can be challenging, but with strategic preparation and a proactive mindset, facilities can navigate the season successfully.

The Impact of Seasonal Changes on Census and Admissions

The holiday season often brings heightened stress for everyone, but for individuals in recovery, this time of year can be especially trying. Patients may feel an increased urge to leave treatment prematurely or against medical advice (AMA). Additionally, clinicians may face pressure to approve discharges without fully evaluating the patient’s readiness. It’s important to remain vigilant during this time to ensure patients are supported in continuing their care when clinically appropriate.

 

Financial pressures also play a significant role. As insurance accumulations reset on January 1, providers should anticipate challenges with new admissions. Many prospective patients and their families may struggle to cover deductible requirements or out-of-pocket expenses, especially with cash reserves depleted from holiday spending.

Financial Preparednes

Strategies to Prepare and Protect Your Facility

Given these realities, facilities must adopt a financially conservative approach and focus on optimizing their current census. Here are key strategies to consider:

 

  1. Proactive Census Management
  • Monitor patient progress carefully and involve clinical teams in evaluating discharge readiness.
  • Reinforce the benefits of completing treatment to patients and their families, emphasizing long-term recovery goals.
  • Offer additional support to patients feeling the strain of the holiday season, such as stress management or family-focused therapy sessions.
  1. Financial Preparedness
  • Evaluate your cash flow and operating budget, knowing that new admissions may slow in the coming weeks.
  • Create contingency plans for managing reduced revenue and ensure essential resources remain available for patient care.
  • Communicate with your billing team to stay on top of any changes in reimbursement rates or delays in payments.
  1. Review Revenue Cycle Management (RCM) Practices
  • This is the perfect time to evaluate your current RCM partner or processes. Are you seeing the financial outcomes you expect? Are you getting accurate, actionable insights and efficient claims resolution?
  • Consider scheduling a financial review or consultation with an experienced RCM provider, like Vital Solutions, to identify opportunities for improvement. An outside perspective can often reveal areas where revenue capture can be enhanced.

Looking Ahead

Winter may present challenges, but it also offers an opportunity to reassess and refine your facility’s financial and operational strategies. By focusing on patient retention, being prepared for financial hardships, and ensuring you have the best RCM support in place, your facility can weather this season and emerge stronger as spring approaches.

 

At Vital Solutions, we specialize in supporting behavioral health facilities with comprehensive revenue cycle management services that maximize financial outcomes. If you’d like to explore how we can help your facility optimize its revenue processes, we’re here to start the conversation.

Let’s work together to ensure this winter season is not just a time of challenge but also a time of preparation for long-term success.

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