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No margin, no mission: for Livengrin, improving quality included finding a way to survive financially.

Publication: Behavioral Healthcare
Publication Date: 01-APR-09 		Format: Online
Delivery: Immediate Online Access
Full Article Title: No margin, no mission: for Livengrin, improving quality included finding a way to survive financially.(SPECIAL SECTION)

Article Excerpt
Across its 43 years of providing treatment for alcohol and drug addiction, Livengrin Foundation of Bensalem, Pennsylvania, has seen many changes in both the field and how it conducts its operations. Despite Livengrin's well-earned reputation for quality services, the turn of the century was no picnic for the organization, one of the state's first nonprofit addiction treatment centers.

"As the 2003 fiscal year was drawing to a close, we were mired in a fifth straight year of financial distress," recalls CEO Richard M. Pine. Livengrin was losing around $600,000 per year on an annual operating budget of approximately $7 million. Further losses would have seriously jeopardized its ability to stay in business.

Livengrin's Board of Directors knew that these trends resulted not from waste or ineptitude but from strategic choices. Despite the self-evident wisdom of the mantra "You can't be all things to all people," Livengrin had tried to "successfully" operate with a patient population that was a blend of public-and-private-pay clients. This resulted in extremely diverse clinical and patient-management needs, and each required its own marketing strategy.

Something had to change....

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