For North Carolina Behavioral Health Facility Leaders

Your Margins Are Shrinking.
Your Coverage Gaps
Are Growing.

Two converging forces are squeezing behavioral health facilities from both sides. The Moore Medical Group provides dedicated hospitalist coverage — and the financial lens to determine whether it makes sound business sense for your facility.

No commitment No pressure Data-driven clarity

The Pressure Is Real & Measurable

$880B+
in Medicaid cuts (OBBBA, 2025)
15–20%
rise in clinician comp over 5 yrs
20%
avg 30-day psychiatric readmission rate
240
hospitals penalized by CMS in FY2026

The window for action is narrowing. Facilities that take proactive steps now will be better positioned to maintain care quality and financial viability through the transition ahead.

Pain Point 1

The Scissors Effect on Facility Margins

Revenue is being cut from above while costs are rising from below. The blades are closing fast.

The Revenue Blade: Medicaid Reductions

The One Big Beautiful Bill Act (OBBBA) introduced more than $880 billion in Medicaid reductions over the next decade, including a 15% reduction in the federal matching rate for expansion populations. As many as 12 million Americans could lose coverage by 2034 — behavioral health patients among the most vulnerable. Between 2023 and 2024, 126 hospitals shuttered their inpatient psychiatric units citing unsustainable reimbursement.

$880B+ in cuts · only 2.4% CMS payment increase for IPF facilities in FY2026

The Cost Blade: Rising Provider Compensation

Behavioral health clinician compensation has risen 15–20% over five years. The average hospitalist salary now stands at approximately $348,000 — not including benefits, malpractice, recruitment, or administrative burden. Staff turnover rates range from 30–60%, meaning facilities face not only high compensation costs but the recurring expense of recruiting and onboarding replacement providers.

$348K avg hospitalist salary · 30–60% turnover rate in behavioral health

The Scissors Effect in Summary

Revenue is falling (Medicaid reductions, shrinking patient pool, flat reimbursement increases) while costs are rising (provider compensation up 15–20%, turnover at 30–60%, CMS payment increase of only 2.4%). The margin between what facilities earn and what they spend on medical coverage is narrowing every quarter. Without a strategic response, this trajectory is unsustainable.

Pain Point 2

Escalating Clinical & Operational Risk

Financial pressure and clinical risk don’t operate independently — they compound each other in a downward spiral.

Readmission Penalties

The mean 30-day readmission rate for psychiatric inpatients is approximately 20%. In FY2026, CMS penalized 240 hospitals with reimbursement reductions of 1% or more under the Hospital Readmissions Reduction Program.

20% avg 30-day readmission rate · 11–36% facility range

Medical Comorbidities

Up to 50% of psychiatric inpatients present with coexisting medical conditions — diabetes, hypertension, respiratory disease — that require active management. Comorbid patients have readmission rates nearly twice as high and average stays 1.4 days longer.

50% of psychiatric inpatients with active medical comorbidities

Workforce Shortage

More than 122 million Americans live in Mental Health Professional Shortage Areas. Coverage gaps create patient-safety risks — delayed emergency responses, incomplete H&Ps, missed follow-ups — and direct exposure to Joint Commission deficiencies.

122M+ Americans in mental health provider shortage areas
These are not hypothetical risks. High readmission rates, CMS penalties on already-thin reimbursement, medical comorbidities in half of psychiatric patients, and a nationwide provider shortage creating dangerous coverage gaps. They are measurable, ongoing, and accelerating.

Where These Pressures Meet

The Downward Spiral Facilities Must Break

These two pain points are not independent — they compound each other. When margins tighten, facilities defer hiring, reduce coverage hours, or rely on less experienced providers. When coverage thins, patient outcomes suffer, readmissions rise, and CMS penalties further erode revenue.

The result is a downward spiral in which financial pressure creates clinical risk, and clinical risk creates financial pressure. Breaking this cycle requires a solution that addresses both sides simultaneously — one that improves clinical coverage and care quality while also making financial sense under the new reimbursement reality.

The Moore Medical Group Approach

Expert Coverage + Financial Validation

The Moore Medical Group addresses both sides of the crisis simultaneously — clinical coverage that closes care gaps, and a CFO/CPA-informed financial lens that validates the business case.

Comprehensive Clinical Coverage

H&Ps, daily rounding, on-call coverage, and active medical management of comorbidities — ensuring no coverage gaps that expose facilities to regulatory or patient-safety risk.

Quality-Driven Care Model

Active medical management of comorbidities during behavioral health stays — reducing preventable complications, readmissions, and the CMS penalties that compound an already-strained revenue picture.

Flexible Outsourced Model

Outsourced hospitalist coverage that eliminates the fixed overhead of full-time employed providers — salaries, benefits, recruitment, and turnover costs — while maintaining consistent quality and availability.

The Moore Medical Group provides the patient-care solution. Our financial and strategic expertise helps facilities determine whether that solution also makes sound business sense — not a sales pitch dressed in financial language, but a genuine business-case review.

About The Moore Medical Group

The Expertise Behind the Engagement

Physician-led since 2000

Founded by Eric Moore, MD, MBA, The Moore Medical Group has spent 26 years exclusively serving inpatient psychiatric and behavioral health facilities — not general staffing, not a broad healthcare agency. This is our singular focus.

Scale & capacity you can count on

40+ providers (MDs, NPs) serving 8 facilities including 3 in North Carolina, delivering 20,000+ patient encounters per year. Every provider undergoes facility credentialing, background screening, and orientation through MMG’s internal Quality Improvement Program before serving your patients.

Full clinical scope — child through geriatric

Our teams manage H&Ps, daily rounding, on-call coverage, medical consults, medication and antimicrobial management, and Joint Commission compliance support across all patient populations: child, adolescent, adult, and geriatric.

The only group with a dedicated financial strategy layer

Our leadership includes Walter V. Murray, DBA, PhD, CPA — three decades in healthcare finance, planning, and business administration — which is why we can deliver a genuine facility-specific cost-benefit review, not just a coverage pitch.

A CFO/CPA-Informed Strategic Lens

Financial Validation — Not Just Coverage

What distinguishes The Moore Medical Group engagement from a traditional staffing-agency relationship is our integrated financial perspective. We understand that facility administrators need more than clinical coverage — they need to know the economics work.

Our complimentary, facility-specific cost-benefit analysis examines:

1

Current provider-coverage costs — compensation, benefits, recruitment, and turnover

2

Reimbursement exposure under the OBBBA Medicaid reductions and CMS IPF payment schedule

3

Readmission-penalty savings potential from improved medical management

4

Break-even analysis — outsourced coverage vs. the status quo

5

Net financial impact under multiple reimbursement scenarios

Our Commitment

We Use the Phrase “Financial Validation” Deliberately

Our goal is to help you validate — or invalidate — the business case with real numbers, not assumptions. This is an executive-level financial perspective designed to give decision-makers the data they need.

If the numbers don’t support the move, we’ll tell you that. That’s what CFO/CPA-informed analysis means.

“We don’t just provide coverage — we help you determine whether the solution makes sound business sense through rigorous, facility-specific financial validation.”

Why Acting Now Matters

The Window for Action Is Narrowing

The OBBBA Medicaid reductions are not a future threat — they are current law. Facilities that wait to respond will face the full impact of declining reimbursement with no structural changes in place to offset it.

Facilities that evaluate their coverage model now can stress-test their financials before reimbursement declines force reactive cuts.
The provider shortage will not ease in the near term — competition for qualified clinicians will only intensify as more facilities recognize the need to act.
Facilities that take proactive steps now will be better positioned to maintain both care quality and financial viability through the transition ahead.

The exploratory call is the right first step — it costs nothing and produces data-driven clarity about your options.

Next Step

Schedule an Exploratory Call for a Complimentary Facility-Specific Cost-Benefit Review

We invite you to explore whether The Moore Medical Group approach is right for your facility. Our initial engagement is straightforward and without obligation.

No commitment
No pressure
Data-driven clarity about your options
Facility-specific numbers — not generic estimates
Schedule Your Complimentary Review

Scheduling takes less than 2 minutes. All conversations are confidential.