Behavioral health organizations seek to grow their business, and one way to do so is through Requests for Proposals (RFPs). But many organizations are not successful in this endeavor. It is not because the organization lacks expertise or the capability to provide the requested services. It is also not because they require the staffing or the ability to recruit and hire.
The financial component is the one area that creates difficulties for most organizations pursuing RFPs. And this is crucial. With my clients asking me about applying for RFPs, we explore the finances first. One reason for this approach is that the funding does not support the company’s capabilities. For example, in the recent California Community Reinvestment Program (CalCRG), programs could only apply for a specific amount of no more than 30% of their total existing revenue. If an organization had a small revenue stream, this grant (although valuable) would be limited to a portion of its current volume. And some organizations fail to understand how a large influx of funding and operations could jeopardize their existing business.
The other factor is whether the finances make sense. An RFP may indicate a dollar amount to be awarded for services. But for an organization, can they make the dollars and cents work for them? They want to retain money and maintain their business to take on other programs. How do they explore the RFP and discover if it makes sense? The first step is to create a Pro Forma. The Pro Forma is a look into the future, a forecast of what the project will look like. It shows how the expenses, revenue, staffing, and profit work together.
The Pro Forma looks at the financial variables. The rate of pay (per client, a unit of service), the expenses, the expected revenue, staffing, and other costs. Many RFPs are cost-based reimbursement. This means that the expenses must match the revenue to the penny.
Suppose a potential contract is $5 M for yearly behavioral health services. The Pro Forma determines the reimbursement rate per minute or hour to determine how many services can be provided. Then it reviews the number of staff, their full-time equivalents or FTEs, and which titles are to provide the services (clinicians, behavior specialists). The Pro Forma also looks at direct costs (for the actual program) vs. indirect costs (for overhead) and outlines the expenses. Once this is done, the Pro Forma can help the behavioral health organization to decide if the RFP is worth the application.
Doing the financial work in an RFP first helps the behavioral health organization save time in determining whether to pursue the project. Then once completed, it guides the narrative to know the who, what, where, how, when, and why in the narrative.
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PRAXES is a nationwide behavioral health software, consulting, and training company. No one in the behavioral health industry has a better reputation, and if you give us the chance, we’ll show you why! At PRAXES, our services improve the efficiency and structure of behavioral health agencies serving children and families nationwide. PRAXES brings over 45 years of administrative and clinical expertise. With more than 100 client companies nationwide, we offer the expertise to advance the quality of behavioral health services. We accomplish these goals through our new clinical decision software, our training of best practices, and helping companies meet regulatory standards. At PRAXES, we believe in being creative and fostering new ways to serve children and their families. Our vision is to empower the families our agencies serve with skills that not only improve their functioning, but help them to thrive in their everyday lives. When you give us the chance, you’ll be connected directly to our friendly staff, so you can expect immediate attention to your inquiry. So, don’t wait, call now!
Dan Thorne has unique perspectives on the field of mental health. As a clinician, he has had over 40 years of experience working with clients in the Southern California area. After obtaining his Bachelor’s degree from the University of California at Irvine, he worked with children in the Orange County Juvenile Hall. Here he honed his earliest techniques on at-risk children. After that, he obtained his Master’s degree in Counseling from California State University, Fullerton.
In the 1990’s, Dan turned his attention to the clinical and administrative side of behavioral health organizations. For three years, he was the Assistant Administrator of Starting Point, a chemical dependency facility in Costa Mesa, CA. In 2001, he took an opportunity to be the Director of Harbor View Community Services Center in Long Beach. When he arrived, the Center had only 80 clients and 13 staff. When he left, there were over 400 clients and 75 staff. Dan created several programs through their contract with the Los Angeles County Departments of Mental Health and Child and Family Services. Under his guidance, Harbor View became one of the leading providers of children’s services in Los Angeles County.
While improving the results of the client’s parents at the Center, Dan reflected on his experiences as a parent. His children themselves had special needs such as mental and intellectual challenges, and Dan knew the toll it takes on the parent. In order to help the child, the parent has to be healthy. From this concept, he created his parenting program. After years of refining it, teaching it to his staff at the Center, and then taking the results and comments from these efforts, he became the developer of the current PRAXES program. It is a culmination of Dan’s personal trials and tribulations as a parent along with empirical results and research of over 40 parenting programs.
Our vision at PRAXES is to advance the strength of parents and caregivers of children with special needs (mental health, intellectual, or physical) through education, support, and empowerment. Thus, they can live healthy and functional lives while caring for the child.
Apogee is a clinical decision software designed to help behavioral health practitioners with their treatment and patient engagement. It provides evidence-based and research-based components. Not only do they consist of elements from such practices as Cognitive Behavior Therapy, Seeking Safety, Dialectical Behavior Therapy, Motivational Interviewing, Functional Behavior Analysis, but also the Intensive Models for Parents, Youth, and Children.
PRAXES has over 30 years of accreditation experience. We know what it takes to get your organization accredited. Whether it’s Joint Commission, CARF, or COA, our team can provide an evaluation of your current status and review the standards which need improvements. We will assist you with the policies, documentation, and training required to be accredited.
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