![]() However, it will exclusively be through de novo growth and likely won’t include heavy marketing. Foresight’s path forwardĪt some point, Foresight Mental Health will grow again. He then acquired Colony Care Behavioral Health. He gained his interest in behavioral health after consulting for TaraVista Behavioral Health Center. After retiring, he continued to work as a consultant. When he retired, it operated 300 dental practices in 24 states. Serrao was the CEO of Wakefield, Massachusetts-based American Dental Partners for 20 years. Serrao has more than 35 years of experience in health care management and entrepreneurialism. Milford and Hapeman have been demoted to other executive roles that now report to Serrao, who took over in May. He originally joined the company in April as executive chairman to be a mentor to Milford and Hapeman. There was a catch to the funding investment: Serrao had to step in as CEO. He did say that Sequoia Heritage led the round. In order to stay afloat, Foresight Mental Health privately secured a Series C round of investment, though Serrao remains tight-lipped on the amount. “While it’s easy to bill for them, it’s hard to collect.”Īlso among the layoffs, Foresight shuttered its neuropsychology business and is cutting its marketing department. “It’s very easy to grow a health care services business and it’s very easy to provide the services,” Serrao said. Each relied heavily on manual input and was severely prone to error.Īdditionally, this led to a high health insurance claims denial rate, Serrao said. Replacing the EMR and billing systems - which didn’t talk to each other, Serrao said - has an impact on the number of needed operations employees. In turn, those 18 jobs will be eliminated. By the end of July, Foresight will complete a rollout of a new all-in-one EHR, practice management and revenue cycle management system from athenahealth, the CEO said. The EHR required 18 employees, including 11 engineers, to run, according to Serrao. It also operated a labor-intensive, homegrown EHR that Serrao told BHB was a “disaster.” ![]() This led to billing and reimbursement headaches for the company and patients alike. Those affected by the July layoffs were given 60-days notice.įoresight Mental Health was also hamstrung by a hodgepodge of internal systems and applications, sources, including Serrao, told BHB. Then, on July 11, the company announced layoffs affecting 80 positions these, too, were administrative positions. On April 20, Foresight laid off 120 people among its administrative team, effective immediately. “This model is unsustainable, and we had to make a hard change.” “The speed of growth came at the expense of optimizing the overall business operations,” Milford said in the email. Foresight Mental Health overstaffed on the administrative side, for example, in an attempt to boost its growth, Milford said in an email obtained by BHB announcing the first round of layoffs in April. ![]() In part, the layoffs were to correct certain workforce investments. The company brought in just north of $40 million in 2021, Serrao said, but he declined to discuss the company’s operating losses. “The systems they were using to run the business and the point of ‘growth at all cost’ and just throwing bodies at problems led them to be in this position, where literally they were going to run out of capital,” Greg Serrao, Foresight’s new CEO, told Behavioral Health Business.įoresight was “probably 10 weeks away from no cash” when he joined in April, he noted. However, by the end of 2021, expenses growth had outpaced revenue to such a degree that Foresight would have run out of capital by this summer, were it not for some dramatic action over the last few months. Why the layoffs happenedįoresight Mental Health had big plans for a national expansion, recruiting additional providers and more. ![]() In February, former co-CEOs Milford and Hapeman told Behavioral Health Business that the startup would have 1,000 mental health practitioners in just a few months and would soon start caring for Medicare and Medicaid patients.
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