Ambulatory Patient Groups Behavioral Health Revenue Projection Model

Client: Safe Space NYC
Faculty: Amy Goldman, Roger Kropf
Team: David Leckner, Patricia Long, Farah Mahmud Omer, Esther Platnick
Year: 2012
Safe Space is a nonprofit organization with a 70 percent Medicaid population. They offer a wide range of integrated family support and youth focused programs, including mental health services, designed to help families build a more hopeful future for themselves. As of October 2010, mental health clinics such as Safe Space, under the direction of New York State’s Office of Mental Health, must adhere to drastically different reimbursement rates and guidelines for Medicaid patients called Ambulatory Patient Groups (APG). The first aim of the Capstone project was to research and summarize the new rates and guidelines. The second was to provide a three year business plan for Safe Space using models built by the Capstone team. The team used the model to conduct revenue projections under the APG methodology that analyze various service mix options and management strategies. Finally, the team recommended strategies to maintain or improve Safe Space’s performance under the new reimbursement system.