Financial Management & Analysis

Increasing Your Financial Health the Horizon Health Way

An effective behavioral health business plan is one that is not only profitable, but provides intrinsic value across the entire hospital.

In budgeting for mental health services, many hospitals only see their financial reports through a narrow lens of the P&L. With only one piece of the puzzle, you’re left with an incomplete picture of the unit’s overall financial health.

Horizon Health’s Financial Analysis (FA) team provides granular views of your behavioral health unit’s financial health using our proprietary contribution margin analysis. This will net the actual, realized revenue against controllable expenses to produce a more accurate picture of unit performance. This methodology provides your hospital with the most objective analysis of the unit’s financial performance, thus providing a more accurate picture.

Our FA team can identify root causes of potential revenue and expense inefficiencies including:

• Discrepancies between your hospital’s contracted rate vs. realized rate by payer
• Payers whose realized rates are greater/less than incremental expenses
• Total payer mix for which realized rates are less than incremental expenses

In addition to the contribution margin analysis, our FA Team can provide other analyses which will help your hospital gain additional insights into the behavioral health service line. Examples include: a comprehensive review of the PEPPER, a market analysis/bed need by demographic, a billing review related to timeliness and accuracy of payment and other ad-hoc analyses.

Through Horizon Health’s comprehensive analysis of your behavioral health service line, our FA team can provide guidance that helps you turn your mental health business plan into opportunities for growth.