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5 Most Common Mistakes Owners Make When Opening an Addiction Treatment Group Practice

Considering opening an addiction treatment, behavioral health or even mental health group practice? Congratulations! 

This is a big step! It’s also a critical point in the success of this venture. What you do at this moment will have lasting effects on your business for years to come. 

Frequently, we see people who are clinicians themselves with goals like these. 

Maybe that describes you. 

Maybe you’re a clinician who is excited about this ambitious project and you want to get started right away! What you lack in experience you make up for with enthusiasm! How hard could this really be, anyways? You’ve seen how group practices work. Maybe you’ve contracted with one or even worked at a group practice as a W2 staff member… 

Stop right there. 

While it’s great to have boots-on-the-ground experience in the field, working within a group practice and operating a group practice are two very different things. There’s a million details that you don’t think about as a clinician that just fade into the background when you’re not actively involved in the decision-making and operations at a group practice day-to-day. While clinical know-how is wonderful, sometimes would-be group practice operators lack business and management acumen to get the job done well and support a successful business. 

If you’re reading this post, you’re on the right track. You’re doing the research and looking before you leap. 

Today, we’ll go over the top 5 mistakes we see newbie operators make when opening a group practice - particularly in the addiction treatment and/or behavioral health space. We’ll flag the trouble areas that have plagued other operators so that you can steer clear of common pitfalls and chart your course to a thriving business.

Mistake #1: Rushing Into Opening an Addiction Treatment Group Practice Without a Business Plan 

It’s shocking how many clinician-entrepreneurs open an entire group practice without ever drafting a business plan. 

This is like trying to drive a car across the country without a map - or a Google Maps, as the case may be. Your trip will probably get so disorganized and chaotic that you never get to your destination. Even if you do get to your destination, you’ll certainly be wasting time and money along the way. 

Be smart and don’t skip this step. There are plenty of free resources on the internet to help you craft the perfect business plan for your addiction treatment group practice. A good plan doesn’t need to take a huge amount of time, but it will help you organize your efforts and clarify your goals in the early stages of your business. Plus, it’s great for attracting investors or partners if you need help with the initial startup costs.

Mistake #2: Failing to Build Your Addiction Treatment Group Practice Team

You are a business now, so start thinking like one. 

You’ll need to build a team of professionals you trust to help maximize your opportunities and minimize your liabilities. If you’re going to be starting an addiction treatment group practice - with or without W2 employees - you’ll need to engage the services of an attorney (possibly an employment attorney) and an accountant. This is the bare minimum. 

Other professionals you may need to bring on board include: 

  • Web designer 

  • Marketing help 

  • Janitorial

Mistake #3: Choosing the Wrong EHR Software for Your Addiction Treatment Group Practice 

Your clinicians will thank you for choosing an EHR that is built specifically for behavioral health

Some addiction treatment organizations choose bloated, impersonal (and overpriced!) EHRs like Theranest, AthenaHealth or TherapyNotes only to regret the choice later. 

Of course, by then, it’s a huge ordeal to make the switch to a saner, more intuitive system. 

Don’t assume that your choice of addiction treatment group practice EHR doesn’t matter. It matters - a lot. A smart, functional purpose-built EHR helps with billing, clinician retention, outcomes tracking

Mistake #4: Running Your Group Practice From Below and Not Delegating Tasks 

Too many group practice owners have their hands all over every part of their business. From social media to onboarding to marketing to billing, there’s a fair number of group practice owners who haven’t met a task they’re not willing to tackle. 

Unfortunately, that also means they’re not delegating.  

While this enthusiasm is commendable, it’s not sustainable. The end result is always burnout. Worse, by creating bottlenecks in your business operations, you’re actually preventing it from growing. 

The trick here is to begin outsourcing tasks before it feels like an emergency. Engage an assistant before you need one. Hire a social media manager and let them handle the distraction factory while you focus on doing what you do best: staying in CEO mode.

Mistake #5: Not Setting Goals For Group Practice Growth 

Where do you see your group practice in 12 months? What about 5 years? 

How many clinicians do you want? How many locations? What’s your revenue target? What are your top billing KPIs

Make sure the goals you set are SMART goals: specific, measurable, achievable, relevant and time-bound.

“I want to make more money soon” is not a SMART goal. 

“I want to reduce our claim denial rate by 50% within the next 6 months” is.   

Opening an Addiction Treatment Group Practice? We Can Help.

Behave Health is committed to making it easier - and more profitable - to operate evidence-based, results-focused addiction treatment centers.

Our all-in-one app puts clinical, administration, staff, admissions, alumni, residents, treatment plans, billing, insurance authorizations and more - all at your fingertips.

Get your free trial started today and see why more addiction treatment centers prefer Behave Health.

PS. Just getting started with behavioral health? Need help with certification, too? Behave Health can also help direct you to the right resources for help with Licensing or Accreditation by either The Joint Commission or CARF. Mention to your product specialist that you’re interested in this service after you start your free trial!