Mixed Forecast about Behavioral Health Landscape: What It Means

Behavioral health providers have varying opinions about the business landscape in the next four years, according to a survey by Praxes Behavioral Health conducted in March and April 2025. The study gathered over four hundred responses from nationwide behavioral health organizations. Participants shared their views on their company’s administrative, financial, and clinical operations. This mixed forecast suggests potential challenges and opportunities for which providers must be prepared. 

Fewer than 50% of participants believe their organization will remain favorable over the next four years. This same group also responded regarding projected changes in funding, employee retention, productivity, and available services during this period. Specifically, 38% plan to pursue government funding, 36% seek grant opportunities, and 25% target managed care organizations. When asked about the anticipated severity of client illnesses in the coming four years, 40% indicated it would decrease, while 35% expected an increase. Participants identified key areas of significant concern within their organizations.

The following list ranks these areas from highest to lowest concern:

1.     Client engagement

2.     Access to care

3.     Cultural competence

4.     Technology integration

5.     Workforce challenges

6.     Rising demand for services

7.     Quality of care

8.     Crisis management

9.     Funding and resources

10.   Regulatory compliance

Based on these findings, several trends could be occurring:

1.     Organizations may not be focused on the right strategies. If over 50% of staff are not sure their organization is heading in a favorable direction, this uncertainty can create more stress and uncertainty. Leaders need to look at their short-term plans year by year and decide how they will move from surviving to thriving in the next four years.

2.     A shift may be going away from government funding sources. Whether the Trump administration cuts Medicaid funding or not (which is advertised, but nothing is set in stone), behavioral health organizations need to read the tea leaves and find funding alternatives in grant funding or in fundraising opportunities. The potential impact of such cuts could lead to a significant reduction in available resources, making it even more crucial for organizations to seek alternative funding sources.

3.     Answers must be found to deal with the lack of client engagement and the need for access. For example, the average wait time to seek therapy is six weeks. When clients can see a therapist, the drop-out rate in treatment runs between 20% and 57%. This means that clients have to wait a long time to enter treatment, and when they do, they may not stick around. These factors do not satisfactorily answer the growing need for mental health services. Agencies must find solutions to expediting care while training staff to establish better rapport and therapeutic relationships with clients. 

If you would like a copy of the survey results, please get in touch with us.