What Behavioral Health Board Members and Private Equity Firms Need to Know to Hire the best CEO in Behavioral Health?

What Behavioral Health Board Members and Private Equity Firms Need to Know to Hire the best CEO in Behavioral Health?

The role of a chief executive officer (CEO) in behavioral health can be complex and nuanced. There are many different areas the CEO needs to have a working knowledge of including clinical care, accreditation requirements, business development, finances, talent management and client care, to name a few. Whether a behavior health hospital or treatment center serving addictions, eating disorders or other patients with severe mental health illness, the ability to operationalize the organization’s vision to deliver evidence based, quality care is a good place to begin designing the Chief Executive Officer role.

In this blog post, we will unpack the role of a Chief Executive Officer in behavioral health and discuss some of the most important aspects of the job. This information can help those aspiring to be a CEO and is especially helpful to behavioral health hospital and treatment center Board Members who are reexamining their CEO job description as a first step in beginning a search for a new CEO.  Board members and PE firms want to make sure they find CEOs and senior executives that can hit the ground running because they have the tools to perform the job effectively including the right skills, experience and personality.

Chief Executive Officer | JDI

Chief Executive Officer (CEO) Behavioral Health Jobs

As the head of a behavioral health hospital or treatment center, the CEO oversees the organization’s daily operations as well as future focus. This requires a broad range of skills and expertise, from treatment program operations/regulatory, and business development/marketing, to financial/revenue cycle/payer management and industry knowledge/strategic planning. The incumbent CEO must also have exceptional leadership skills that enable them to build relationships with key internal and external stakeholders, including insurance companies and state agencies.

In addition, the ideal CEO must be equally passionate as well as business savvy about the unique challenges and opportunities of providing mental health care and substance use treatment. This individual should be committed to exceptional customer care defined as easy access, a great customer experience and value driven care.  Under the guidance of an exceptional CEO, all of these elements fuse to create a culture that truly exemplifies best in class, cutting edge and  efficiently delivered care.

Responsibilities of a Chief Executive Officer in Behavioral Health

As the topmost leader of a behavioral health organization, the CEO shoulders many responsibilities, from ensuring quality care delivery to maintaining financial stability and operational management.

The CEO also ensures that all patients receive appropriate care and treatment, evidenced by their timely recovery and positive health outcomes. This oversight involves managing the work of clinical staff, providing guidance, and making strategic decisions that align with the organization’s mission and values.

Additionally, a CEO is accountable for building solid relationships with stakeholders, including providers, payers, and community agencies. A Chief Executive Officer must ensure coordinated care and meet increasingly complex requirements such as state and federal regulatory and accreditation requirements.

Beyond these duties, a successful CEO must also skillfully manage organizational finances, attract and retain top talent, and continuously innovate to stay ahead of trends in this fast-evolving field.

Other responsibilities of a Chief Executive Officer include:

  • Participating in activities that promote the mission of behavioral health organizations
  • Ensuring compliance with all applicable laws and regulations, as well as internal policies and procedures
  • Developing and overseeing the budget for the organization
  • Making decisions about personnel and employee development programs
  • Forging connections with essential stakeholders, including physicians, insurers, vendors, and other organizations
  • Leading efforts to attract new patients as well as retain existing ones
  • Identifying areas of risk and developing strategies to mitigate them

Depending on the size of an organization, a CEO may also be responsible for overseeing marketing efforts and public relations activities.

Qualifications and Skills Needed For a Successful CEO in the Behavioral Healthcare Field

The job duties of a CEO in the behavioral health field require a unique set of qualifications and skills. Generally, the executive must deeply understand the complexities of mental health, substance use treatment, and the healthcare industry in general. This requires expertise in clinical care, education, financial management, operations management, and regulations.

Advanced knowledge of public health, mental health law, and public policy is also essential for a CEO to lead a behavioral health organization successfully.

Moreover, outstanding communication skills are essential for this role as CEOs must collaborate with disparate individuals and entities ranging from healthcare workers to governmental agencies and insurance companies. Stellar organizational abilities and exceptional interpersonal understanding are also necessary to effectively manage the organization and inspire and cultivate staff collaboration.

Beyond this knowledge base, it is also essential for CEOs to possess strong leadership skills and experience in corporate team building and motivating personnel. They should also have a deep commitment to service, be passionate about providing quality medical services, and foster an environment of mutual respect for diversity, equity and inclusion for both patients and staff.

Common Challenges CEOs Face in Behavioral Health

CEO behavioral health jobs typically involve many challenges, especially in today’s competitive landscape. Below are some of the most common challenges for CEOs in this field.

As a leader in the healthcare industry, a CEO’s unique expertise includes wearing multiple hats and focusing on legislative compliance. Compliance with state and federal regulations and private insurance payer requirements requires a deep understanding and they must employ strategic knowledge to adapt and deliver a high standard of excellence to adhere to rigid laws.

Being up-to-date with ever-changing laws and regulating amendments can help the company avoid any legal ramifications while keeping its standards set apart from competitors.

Developing an Effective Management System

Given the complexity of behavioral health organizations, CEOs must use their operational management skills by building an effective yet efficient structure.

The organization’s strategic direction must be crafted while aligning organizational objectives with available resources, employees and the marketplace. An excellent management system should encompass policies and procedures to ensure efficient economic operations leveraging technology and workforce deployment.

Establishing a Reliable Financial Infrastructure

From the cost of supplies to workforce and technology development, healthcare treatment centers must depend upon a steady and reliable financial infrastructure to support their operations and realize their goals. CEOs need a deep working knowledge of their organization’s budget, financial levers and sharp analytical and interpretive abilities to identify where improvements should be made to enhance returns while prudently managing expenses. 

To successfully identify changes that will ensure lasting sustainability, it’s not enough to have expertise and experience. An executive, like a CEO, also needs to possess an array of intangible qualities such as curiosity, creativity, mindfulness, and mastery.

Addressing Cultural, Communication, and Organizational Barriers

CEOs need to be influencers in the healthcare market who advocate and support initiatives to break down cultural, organizational, and communication barriers and bias that otherwise could stand between staff and patients and impede progress and success. DEI sensitivity is a must. 

Improving healthcare industry initiatives requires an understanding of how complex systems with multiple stakeholders operate. Clarity of thought when managing effectiveness, cost-efficiency, and quality control is necessary while balancing the needs of the parties involved. 

This is a task best accomplished by C-suite executives who have experience in addressing behavioral health cultures across organizations.

These individuals must be grounded, display empathy as needed to motivate people appropriately, and have superior communications capabilities both at oral, personal, or existing digital means in governance roles.

How To Find the Right Chief Executive officer for a Behavioral Health Facility

The best way to find the right CEO for a behavioral health organization is to work with a specialized recruitment firm with healthcare industry experience.

But with many different types of recruitment firms, it can be difficult to discern which sources provide the best assistance.

If your organization is planning on hiring a CEO, look for a firm that specializes in behavioral healthcare executive search. Generally, here are a few qualities to look for.

In-Depth Knowledge of the Behavioral, Addiction and Mental Healthcare Management

Choosing the right executive recruiting firm for a behavioral health organization can be daunting. After all, finding an organization with a deep insight into the industry’s distinct needs and nuances is crucial. 

Organizations whether Not-For-Profit, For Profit or Private Equity, seeking C-suite placements require assistance from experienced recruiters intimately familiar with behavioral healthcare practices in hospitals, residential treatment programs, outpatient clinics, and community mental health centers.

Put your trust in an executive recruiting partner that understands the intricacies of finding ideal talent solutions for the behavioral healthcare industry.

A Wide Network of Contacts and Resources

Any recruitment partner finding executives within behavioral healthcare must have access to extensive contacts and resources.

These connections can include already established professional networks, knowledge about the specific and specialized requirements for top-level management in these fields, and past successful placements into leadership opportunities. 

Having such a vast network of contacts and resources from which to source could prove invaluable when looking for experienced people with the expertise necessary for executive roles. 

Finding an executive search firm with this breadth of knowledge is worth seeking for any organization wishing to onboard new hires at the leadership level promptly without compromising quality or expertise.

Extensive Experience Recruiting Top Executives

Recruiting top executives like a Chief Executive Officer (CEO), Chief Operating Officer (COO),  Chief Financial Officer (CFO), Chief Human Resources Officer (CHRO), Chief Technical Officer (CTO) or Chief Digital Health Officer (CDHO) is no small feat. Such individuals must possess in-depth knowledge in their specialty area as well as the leadership skills to transform the organization they have been asked to join that needs their special expertise.  Further, they must have strategic vision and emotional intelligence to engage and partner with individual departments across an organization.  

For these notable roles, it’s essential to identify a recruitment firm with substantial experience in finding the most qualified executive matches for your own business.

Since recruiting in this category requires understanding characteristics such as problem-solving acumen, interpersonal skills, and organizational sensibilities, an experienced and highly-skilled executive search partner can provide an invaluable advantage in running a successful program.

Final Thoughts

As the leader of a behavioral health organization, the CEO needs to be able to navigate complex dynamics and ensure the treatment center’s long-term success. It is an important role that demands strong technical, organizational, and interpersonal skills.

To have these traits or to find someone with these traits and in depth behavioral health leadership capabilities requires thorough understanding of what is expected of a modern behavioral health CEO.

If you are looking for a great CEO or C-level candidates and need further assistance, get in touch with the “best respected and connected behavioral executive search firm in the industry” – at JDi Healthcare Consultants & Recruiters.