Boosting access to mental health services: Fee-for-service mental health service model

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Hunter Primary Care (HPC), a trusted leader in community health services in Newcastle and across the Hunter Valley for over 30 years, partnered with Larter in 2024 to enhance community service access by designing a new mental health service model. Recognising the growing demand for specialised psychological assessments such as Autism Spectrum Disorder (ASD) and Attention Deficit Hyperactivity Disorder (ADHD) evaluations, HPC is adding to a fee-for-service model that contributes to its mission of providing equitable access to care, while also being sustainable. Here’s how this partnership is making a difference.

The growing need for Psychological Assessments in Australia

Mental health services are in high demand, and not easily accessible for all. Families requiring ASD or ADHD diagnoses often face prolonged wait times of 3.5 years or more within Australia’s public health system (Knott et al., 2024). This delay hinders early intervention opportunities for children and adults, exacerbating challenges for families. Likewise, the November 2023 Senate Inquiry detailed critical shortcomings in ADHD assessment services and emphasised the need for affordable, timely diagnostic support.

Compounding this need is the rapid growth of the psychological assessment market, driven by heightened awareness of neurodevelopmental disorders and increased government funding for healthcare. Innovations in diagnostic tools and a focus on improving accuracy underline the urgency for organisations like HPC to step in with a sustainable, scalable solution.

Why a fee-for-service model?

HPC’s transition to a fee-for-service model, supported by Larter, not only responds to pressing community needs but also ensures long-term organisational sustainability. Here’s why this approach is crucial:

1. Financial sustainability

We predicted annual revenue with a small profit margin, significantly reducing organisational reliance on short-term government grants. This financial independence strengthens HPC’s resilience against funding fluctuations and assists staff retention.

2. Enhanced service offerings

It was important to align this service with HPC’s organisation values hence any excess income from the program would directly subsidise treatment for individuals unable to afford private care.

In addition, income generated from the fee-for-service model will be reinvested into workforce training, advanced diagnostic tools, and extended programs, directly benefiting clients and improving service quality.

3. Decreased wait times

With a dedicated, skilled team of psychologists delivering high-quality assessments, the model accelerates access to essential evaluations, bridging the gap for underserved communities.

Partnering with Larter for strategic success

HPC engaged Larter as a planning and implementation partner. Through a meticulous, multi-phase approach underpinned by training and change principles, Larter has helped HPC transform its vision into reality. Critical phases of the collaboration included:

1. Discovery and analysis

Larter analysed HPC’s operations in partnership with staff, identifying process improvements and training requirements, and clarifying community (and ‘customer’) needs. Key findings underscored the importance of clear workflows, modernised technologies, and partnerships.

2. Designing the fee-for-service model

Crafting a sustainable fee structure was central to this phase. Larter collaborated closely with HPC’s leadership to develop pricing strategies that aligned with industry standards while ensuring affordability and inclusivity. This included establishing efficient billing processes and integrating new systems seamlessly with existing operations.

3. Training and change management

Understanding that new models require organisational buy-in, Larter prioritised staff training and engagement. Clinical psychologists, administrative staff, and support services received targeted training to adapt smoothly to the new framework. Workshops addressed concerns and opportunities, fostering a culture of collaboration and enthusiasm.

4. Community awareness and outreach

Crafting clear, compelling messaging about the program’s benefits was key to ensuring community awareness. By leveraging marketing materials and partnerships with local stakeholders, HPC ensured transparency and accessibility in communicating details of the new model.

Additionally, the program addresses critical national issues, alleviating pressure on public systems and delivering streamlined, high-calibre assessments. Early access to ASD and ADHD diagnoses can significantly improve developmental outcomes for children, while timely interventions enhance quality of life for adults.

The Psychological Assessments Program launched on 2 September 2024.

 

The future of psychological care at HPC

HPC is not only meeting the current demand but also strategically positioning itself for anticipated growth in the cognitive assessment market. Additionally, the program’s reinvestment strategy will act as a catalyst for broader innovation, allowing HPC to pilot new initiatives and explore emerging opportunities.

A model for non-profit success

The introduction of a fee-for-service delivery model shows how nonprofit health organisations can adapt to economic realities while remaining mission-focused. This approach reflects HPC’s commitment to innovation, equity, and excellence, inspiring other organisations to consider similar strategies.

By combining financial acumen with community empathy, Hunter Primary Care and Larter Consulting are redefining what’s possible in Australia’s mental health landscape. For mental health professionals, administrators, and leaders, this successful collaboration offers a replicable blueprint for building sustainable, impactful services.

Partnering with Larter 

Interested in enhancing your organisation’s impact? From supporting general practice in community health to evaluating rural chronic care models to supporting commissioning of after hours primary care services, we love partnering with nonprofits and healthcare leaders to build stronger primary health systems. Feel free to reach out to explore how we can support you.