Reimagining Behavioral Health Facilities: A Strategic Imperative for Access and Outcomes.
- Allan Brown
- Apr 9
- 3 min read
Nearly 1 in 2 Americans will experience a mental health condition in their lifetime, and for many, it begins early—before age 14, according to the National Institute of Mental Health. As of 2023, over 20% of adults in the U.S.—more than 50 million people—live with a mental illness, yet less than half receive treatment.
This disparity is more than just a statistic. It’s a national healthcare crisis—and it demands a bold, focused response. At Prevarian, we believe that better behavioral health outcomes are, in part, made possible through better facilities, designed and delivered by healthcare real estate experts who understand the environmental, financial, and clinical dimensions of care.
The Facility Gap Is Real—and Costly
The need for behavioral health services has surged in recent years, intensified by the COVID-19 pandemic and a growing national awareness of mental health challenges. Yet the infrastructure supporting this care is often outdated, inadequate, or simply absent.
Recent surveys show that over 12,000 U.S. mental health facilities serve fewer than 4 million people annually—the vast majority in outpatient settings, where acuity levels may be mismatched with the care provided. The availability of inpatient beds remains alarmingly low, leading to long wait times, ED boarding, or no care at all.
Why Facilities Matter in Behavioral Health
While many barriers to treatment persist—cost, stigma, lack of awareness, racial disparities—one we can directly address is access to the right type of care in the right setting.
Older psychiatric hospitals often feature long corridors, poor access to natural light, minimal outdoor access, and nurse stations designed more for containment than care. These environments contribute to staff burnout and patient distress, rather than promoting recovery.
In contrast, modern Behavioral Health Hospitals (“BHH”)—thoughtfully designed and programmed—can improve everything from admissions flow to clinical outcomes, while helping providers attract and retain top-tier talent. A well-designed facility enables excellence in care delivery.
Balancing Innovation with Cost Discipline
Let’s be candid: Hospital construction isn’t cheap. The cost of developing a BHH in many markets now often exceeds $450,000 per bed, depending on location, site requirements, and building design. Add rising land costs and material and labor volatility, and it’s easy to see why growth is not meeting demand.
But that’s where experienced healthcare real estate developers can make a meaningful difference.
We bring cost-effective creativity to the table—using strategies like prototype buildings, standardized room layouts and equipment/materials choices, efficient site planning, and locally sourced materials to help drive down costs without sacrificing quality.
Simultaneously, we strive for a healing environment that respects the dignity of each patient—natural light, attention to acoustics, and open or semi-open stations that improve patient-staff interaction, increase visibility across the unit, and foster trust. Finishes are warm, outdoor therapy areas are welcoming, and patient rooms are safe and comfortable.
A Smarter Path Forward
Prevarian works side-by-side with behavioral health providers to identify underserved markets, structure clinical alignments and joint ventures, and we deliver facilities that extend their reach and elevate their reputation. We understand that real estate must support both the business model and the clinical mission.
Because the cost of not treating these patients—emergency care, incarceration, homelessness, and lost productivity—far exceeds the cost of building better facilities.
It’s time to invest in mental health infrastructure that truly meets the moment. Together, we can build environments that deliver care, restore dignity, and improve outcomes—for patients, providers, and the communities we serve.
Prevarian is a national developer of healthcare real estate with an emphasis on post-acute care hospitals. We specialize in aligning real estate strategy with provider growth by delivering purpose-built facilities through strategic partnerships, disciplined execution, and deep market knowledge.
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Sources:
SAMHSA Behavioral Health Services Survey
Prevarian internal project data and industry estimates
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