Behavioral Health Feasibility Study in Michigan

Michigan loans run small

In Michigan the typical treatment loan is modest. The median is $150,000, a mere 0.50x of the national level, and the bulk of loans fall from $72,000 to $331,000, so many borrowers are sole practitioners opening a first office, and few are large programs. The record from FY2017 to FY2026 holds 37 loans totalling $10.2 million. The location quotient is 0.83x, a slightly lighter weight than the national mix, and the class is 22 of 39 within Michigan even though the state ranks 9 of 52 on count. Most of these loans look like counseling practices and small clinics, not residential programs.

Programs, lenders and counties

Of the loans, 34 use SBA 7(a) and 3 use SBA 504, and no loan is franchised. The Huntington National Bank is the only lender that reaches the listing threshold, with 11 loans worth $2.6 million. Oakland County has 10 loans, Kent has 6 and Van Buren 5, with Missaukee at 3. That mix of suburban Detroit, Grand Rapids and a few rural counties suggests practices follow local referral networks. The code is shared, so behavioral health and addiction treatment appear together and cannot be separated.

The missing outcome rates

Cancellation and charge-off both go unquoted here, because each cohort has fewer than 30 loans. A reader should not treat that as a clean record. Behavioral health practices face licensing, insurance credentialing and payer delays that can hold up an opening, and some close when a key clinician leaves, but the data on this page cannot show how often that happened in Michigan.

A Michigan study needs these tests

A study should name the service lines, the licensing path, and the payer mix, including the role of Medicaid managed care and commercial plans. It should size demand within the catchment against waiting lists and existing programs, and set clinician pay against realistic billing per hour. With loans this small, most of the cost is leasehold work and working capital. Payments should still be covered in a year when credentialing is late. The valuation will look at leasehold improvements, equipment and, for an acquisition, the patient base.