The recent funding chaos … whiplash … whatever that was, revealed something every operator needs to accept: dependence on federal funding must end.
There are a million reasons why the system is not self-reliant on its own value proposition. So long as the field continues to hope that reimbursements will improve and more public money will come into the system – a house of cards will be the norm.
You don’t need to accept the norm. Here’s a tactical playbook to help you build funding resilience.
A Three-Pillar Framework: Diversify, Measure, Mobilize
PILLAR 1: DIVERSIFY REVENUE LIKE YOUR ORGANIZATION DEPENDS ON IT
Stop treating federal – or all public dollars – as your budget foundation. These dollars should only be supplemental.
What Can You Do?
Launch direct-pay models with sliding scales
Price based on value, not just ability to pay
Test $50-$500/month membership models for ongoing recovery support
Bundle services (counseling + peer support + family services) at accessible price points
Don't apologize for charging — you're providing a meaningful service with measurable value
Pursue pay-for-success contracts
Identify your strongest outcome metrics (retention rates, employment gains, reduced ED visits)
Approach county health departments and managed care organizations with your data
Structure agreements around measurable milestones, not encounter time or other vanity metrics
Start small: pilot with one payer, prove model, grow – don’t get ahead of yourself
Target community foundations
They're looking for impact with accountability
Lead with measurement: "Here's exactly what your investment produces"
Multi-year commitments are possible if you can demonstrate outcomes
Focus on foundations interested in health equity and social determinants – not just SUD/MH priorities
Build employer or commercial partnerships
Employee assistance programs can benefit from local, quality providers
Offer workplace recovery support, not just crisis intervention
Price on outcomes not activities: reduced absenteeism, improved retention
Position as talent retention strategy and risk management, not charity or stigma advocacy
Action item this week: List your revenue sources. If federal or public dollars exceed 40%, you're in the danger zone. Build a 12-month plan to get this source under 30%.
PILLAR 2: MAKE MEASUREMENT YOUR CURRENCY
In an uncertain funding environment, data is the language that speaks the loudest. Organizations that can prove impact survive. Organizations that can't, don't.
P.S. Output is not impact. Handing out 1412 Narcan doses is output. Stopping or reversing 87 overdoses is impact.
Why measurement protects you:
Pay-for-success models require it
Foundations demand it
Employers want proof, not promises
Even federal funders (when they're not terminating grants at midnight) increasingly require outcomes data
What to measure:
Recovery capital accumulation (personal, social, cultural capital)
Clinical outcomes (symptom reduction, quality of life improvement)
Economic outcomes (employment, housing stability, healthcare utilization)
Service utilization (retention rates, completion rates, continued engagement)
How to use measurement strategically:
In grant applications: Lead with data from previous cohorts
In fundraising: Show donors exactly what their investment produces
In contracting: Negotiate rates based on proven outcomes
In marketing: Let your results speak louder than your mission statement
Action item this week: Audit your current measurement practices. If you can't (a) clearly define success for those you serve, or (b) provide a specific client or program performance metric within 30 seconds, your measurement isn't good enough.
PILLAR 3: MOBILIZE COMMUNITY AS INSURANCE
The federal funding whiplash proved something critical: bipartisan and field-wide outcry works. The restoration happened because people mobilized fast.
Your community relationships aren't nice-to-have. They're insurance.
Build or strengthen your coalition now:
Engage local elected officials before you need them
Create a rapid response network
Tell your story constantly
Join state and national advocacy organizations
Action item this week: Schedule meetings with your city council member, mayor, or state representative. You’re not there to ask for anything. Just to introduce your work and be of service.
The Innovation Opportunity
If chaos has a silver lining … it rattles the cognitive cobwebs and creates openings for new thinking and doing.
When old systems break down, consumers, buyers, and partners look for alternatives. Now is the time to rethink and pitch:
To managed care organizations: "Pay us for outcomes, not visits. We'll reduce your ER costs by 30%.” Be bold.
To employers: "We'll keep your employees working. Pay us based on retention rates." Target industries with lots of employee churn.
To community foundations: "Fund our three-year pilot. We'll show you exactly where every dollar goes and what it produces.”
To counties: "Your jail costs $___/day per person. Our program costs $___/day and reduces recidivism by ___%. Give us ___ participants to help you and change lives."
Your 30-Day Sprint
Week 1: Audit current funding mix. Calculate public dollar dependency. Identify diversification targets.
Week 2: Audit measurement practices. Identify gaps. Implement recovery capital and other comprehensive tracking if you haven't already.
Week 3: Map your community coalition. Identify gaps. Schedule 5 relationship-building meetings.
Week 4: Design one pilot for alternative funding (pay-for-success, direct-pay, employer partnership, or foundation grant). Draft the pitch.
The Bottom Line
The recent federal funding chaos wasn't an anomaly. It's a chronic symptom of a very sick system.
The organizations that survive and thrive will be the ones that:
Diversify revenue aggressively
Measure outcomes obsessively
Build community deliberately
Make your own certainty.
Work With Us
Commonly Well partners with behavioral health providers, community organizations, and health systems to conduct rigorous, actionable research that drives real outcomes.
Interested in similar strategy, analysis, and support for your organization?
Recovery Capital Index implementation and analysis
Community health surveys and population assessments
Program evaluation and outcomes measurement
Data dashboards for quality, performance, and equity monitoring
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