The Workforce Crisis in Behavioral Healthcare: Causes & Solutions

What’s Driving the Workforce Crisis?
Solutions for Stabilizing and Strengthening the Workforce
Looking Ahead
Sources & References

The behavioral healthcare industry is in the midst of a profound transformation. Across non-profits, private providers, and government-run agencies, leaders face mounting challenges that threaten not only access to care but the long-term sustainability of service delivery. Two concerns rise to the top in nearly every conversation: a growing gap in access to quality care, and an escalating workforce crisis.

The data paints a stark picture. The U.S. Department of Health and Human Services (HHS) projects (1) that between 2022 and 2037, over 76,000 additional mental health workers will be needed nationwide. At the same time, the country is expected to lose more than 36,000 professionals from the existing workforce. This growing gap—more than 100,000 workers—means that by 2037, only 45% of the mental health workforce need will be met.

Behavioral Health Business’ 2023 study (2) reinforces this urgency: 54% of industry leaders cited staffing as their greatest challenge to growth, far surpassing public awareness (15%) and other barriers.

What’s Driving the Workforce Crisis?

To develop sustainable strategies, it is essential to understand the systemic issues behind the behavioral health workforce shortage. Three key factors are accelerating the problem:

1. Rising Administrative Burden from Payers and Regulators

In an effort to improve care quality, regulators and payers have increased standards of care and documentation requirements. While the intent is positive, the practical outcome has been an increase in non-clinical administrative responsibilities for frontline staff. Clinicians are spending less time providing direct care and more time completing documentation and compliance tasks. This shift not only contributes to burnout but also detracts from the therapeutic work that professionals are trained to do.

High levels of administrative burden are a common driver of turnover in healthcare—and behavioral health is no exception. Organizations must acknowledge this shift and explore operational and technological solutions that reduce friction and return time back to care delivery.

2. Telehealth is Disrupting Facility-Based Staffing Models

The explosion of telehealth has created flexible, often better-compensated remote opportunities for clinicians, drawing them away from in-person settings. Large-scale telehealth companies can offer clinicians remote work, lighter caseloads, and reduced exposure to physical and emotional demands associated with facility-based work.

This shift has significantly altered the talent landscape. Many behavioral health organizations—particularly smaller or rural ones—now struggle to compete with the flexibility and compensation offered by telehealth providers. To retain clinicians, facility-based programs must reimagine their employee experience and find ways to offer meaningful work, career progression, and improved work-life balance.

3. The High Cost and Impact of Turnover

Turnover is more than a financial issue; it’s an operational one that undermines both care quality and staff morale. The direct costs of recruiting, onboarding, and training are substantial. But the indirect consequences—reduced continuity of care, overburdened staff, and declining workplace culture—can be even more damaging.

When turnover rates are high, existing employees are often asked to pick up the slack, increasing stress and compounding burnout. Over time, this erodes trust in leadership and reduces staff engagement, perpetuating a vicious cycle. Behavioral health organizations must view retention not just as an HR function, but as a strategic imperative.

Solutions for Stabilizing and Strengthening the Workforce

While the challenges are complex, there are proven strategies that can make a meaningful impact. Behavioral health organizations can implement the following approaches to mitigate workforce issues and position themselves for long-term success:

1. Invest in Effective Onboarding and Training

The employment journey begins with the onboarding experience. First impressions matter, and a well-structured onboarding process helps new employees feel equipped, valued, and connected to the mission from day one. Beyond initial training, a culture of safety and standardization—reinforced through policies, procedures, and SOPs—builds confidence and promotes longevity.

Innovative technology can streamline onboarding, reduce HR burdens, and improve engagement. According to Brandon Hall Group (3), effective onboarding improves employee retention by as much as 82%.

2. Build a Culture of Engagement and Feedback

Burnout is real—and often avoidable. Creating a feedback loop with employees provides insight into the root causes of dissatisfaction before they result in resignations. Collecting and analyzing employee satisfaction data, much like patient experience data, enables organizations to identify patterns, adjust policies, and show employees that their voices drive real change.

Regular supervision, even for non-licensed staff, deepens employee-leader relationships and reinforces organizational values. Engaged teams are more likely to stay—and to provide higher-quality care.

3. Admit Patients That Align with Program Criteria

While maintaining a healthy census is critical for financial viability, admitting individuals who fall outside of a program’s scope can backfire. When clinicians are asked to care for patients beyond their expertise or program design, it erodes trust in leadership and compromises care quality.

Clear program focus and strict adherence to admission criteria empower staff to operate confidently within their area of expertise. This clarity helps protect staff morale, reduces burnout, and ensures patients receive appropriate care.

Looking Ahead

The behavioral health workforce crisis will not resolve itself—but organizations are not powerless. By understanding the systemic forces at play and proactively implementing strategic solutions, behavioral healthcare leaders can protect their teams, improve care delivery, and secure the future of their organizations.

Ultimately, it is the responsibility of governance and executive leadership to embrace innovation, align organizational goals with employee well-being, and lead with clarity and courage in the face of ongoing change.

Sources & References

1. U.S. Department of Health and Human Services (HHS): Workforce Projections. (n.d.) <https://data.hrsa.gov/topics/health-workforce/nchwa/workforce-projections>

2. Behavioral Health Business (BHB): 2023 Behavioral Health Outlook Survey Ebook. (2023.) <https://bhbusiness.com/ebook/2023-outlook-survey/>

3. Brandon Hall Group: The True Cost of a Bad Hire – Research Brief. (August 2015.) <https://www.wefindtalents.de/wp-content/uploads/the-true-cost-of-a-bad-hire.pdf>

Confronting the Workforce Crisis in Behavioral Healthcare: Root Causes and Practical Solutions

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