Executive Summary

This section provides an overview of the organization’s vision, mission, and financial goals. It highlights the strategies to balance financial health with the mission of providing compassionate, accessible, and high-quality behavioral health services. The executive summary ensures that stakeholders understand the plan’s objectives and the path to achieving them.

Financial Goals

Define financial goals that align with the organization’s broader vision and mission. The Strategic Financial Plan (SFP) should incorporate 1-, 3-, and 5-year goals to provide a clear roadmap for both short-term wins and long-term sustainability. Setting 1-year goals helps focus on immediate priorities and build momentum, while 3-year goals allow the organization to address medium-term initiatives and adapt to changing circumstances. The 5-year goals establish a long-term vision that guides strategic decisions and ensures alignment with the organization’s mission.

Utilize the SMART framework when defining these goals, ensuring they are specific, measurable, achievable, relevant, and time-bound. This structured approach enables the organization to track progress, remain adaptable, and stay focused on achieving its financial objectives at every stage of growth.

Example of a 1-Year SMART goal:

• Specific: Optimize billing and collections by reducing accounts receivable days by 20%.
• Measurable: Achieve a reduction in days in accounts receivable from 45 days to 36 days.
• Achievable: Streamline the clinical and billing processes by establishing reasonable performance metrics.
• Relevant: Improving cash flow will help ensure financial stability and reduce financial stress.
• Time bound: Achieve this goal within the next 12 months.

‍Action Plan

Action plans outline detailed steps to achieve the financial goals. Each plan breaks high-level objectives into manageable tasks, providing clarity on what needs to be done, deadlines, and assigned responsibilities.

Each action plan includes:

• Tasks/Actions: Clear and specific steps to achieve goals.
• Responsible Individuals/Teams: Assigned roles.
• Completion Dates: Realistic timelines.
• Success Measures: Defined benchmarks for success.
• Potential Challenges and Mitigation Strategies: Proactive planning for risks.

Example of an Action Plan: Reduce days in accounts receivable by 20% within 12 months

Task 1: Improve time to complete progress notes

• Responsible Team: Clinical Team
• Completion Date: May 1, 2025
• Success Measures: Progress notes completed within 48  hours of service
• Potential Challenges: Staff resistance to changes

Task 2: Improve time to  complete clinical supervision

• Responsible Individual: Clinical Supervisor
• Completion Date: June 1, 2025
• Success Measures: Clinical supervision completed within 24 hours
• Potential Challenges: Bandwidth/workload of limited supervisors

Task 3: Improve billing coding and claims follow-up

• Responsible Individual: Billing  Manager
• Completion Date: June 1, 2025
• Success Measures: Reduction in billing errors by 15%
• Potential Challenges: New payor(s), changing billing requirements

‍Financial Projections

Detailed financial projections account for various scenarios, providing a clear understanding of expected revenues, expenses, and cash flow.

• Revenue Sources: Breakdown by categories such as Medicaid, commercial insurance, grants, and donations to identify diversification opportunities.
• Dynamic Forecasting: Projections adapt to changing circumstances like increased demand or policy changes.
• Cost Management: Include strategies for operational efficiency and resource optimization.

Periodic Reviews and Continuous Improvement

Regular reviews ensure that the SFP remains effective and aligned with evolving circumstances. Establish a review calendar for periodic assessments (e.g., quarterly financial reviews, annual updates) to track progress, measure outcomes, and identify inefficiencies.

Key Elements of Periodic Reviews:

• Data Dashboards: Real-time updates on KPIs such as accounts receivable, revenue, and cash flow.
• Feedback Loop: A formal mechanism for staff input to address frontline challenges and insights
• Recognition of Successes: Celebrate achievements to keep teams motivated and engaged.

The Strategic Financial Plan is a comprehensive roadmap that ensures the behavioral health organization achieves financial sustainability while staying true to its mission of providing high-quality, accessible care. By aligning financial goals with the overall vision, the plan supports both immediate organizational needs and long-term impact in the behavioral health sector.

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