Month 1 Deliverable

ICP Validation Summary

Multi-dimensional ICP framework for RCM opportunity identification

Flat ICPs Lie to You

Here's the thing about the traditional ICP model: it lies to you. Not maliciously, but through omission. It tells you that all "residential SUD facilities with 50+ beds" are functionally the same opportunity. They're not. Not even close.

A PE-backed residential facility in Texas and a county-run OTP in rural Oregon might both check the same boxes on a legacy ICP checklist, and that's where the similarity ends. The ownership structure alone changes everything about how decisions get made, how value gets defined, and whether you're looking at a 30-day close or a 300-day procurement cycle.

This document introduces a dimensional ICP model. Instead of a flat list of criteria, it crosses ownership structure with care level, payer mix, and buyer persona to generate conditional qualification paths. The point isn't more criteria. The point is asking the right questions in the right context, and knowing when to push, when to pivot, and when to walk.

The Three Dimensions

Each one reshapes the entire sales conversation.

Ownership Structure

Dictates decision authority, budget constraints, approval chains, and how "value" gets interpreted. A founder processes ROI differently than a PE-backed COO reporting to a board.

Level of Care

Drives documentation burden, billing complexity, and RCM intensity. A PHP/IOP network has a fundamentally different billing profile than a residential facility with mixed payers.

Payer Mix

Tells you revenue predictability and how intense the value proposition needs to be. 70%+ commercial is a different world than Medicaid reimbursement timelines.

Ownership Shapes Everything

Ownership Decision Authority Budget Horizon RCM Value Language
PE-BackedBoard-driven, quarterly90-day pressure cyclesEBITDA impact, margin expansion
VC-BackedFounder-centricRunway-dependentScalability, competitive moat
Owner-OperatorSingle decision-makerAnnual, conservativePeace of mind, compliance, legacy
Hospital-OwnedSystem-level committeeFiscal year cyclesIntegration, standardization
State/CountyAgency approval, politicalAppropriations-dependentGrant compliance, audit readiness
NonprofitBoard/ED, mission-alignedGrant cyclesMission advancement, outcomes data

Level of Care Dimension

Billing complexity and documentation burden vary dramatically across ASAM levels.

ASAM Level Care Setting Billing Complexity Documentation Burden Typical RCM Pain
3.7 Inpatient Detox High Very High Prior auth delays, concurrent review
3.5 Clinically Managed Residential High High LOC downgrades, medical necessity denials
3.1 Low-Intensity Residential Moderate Moderate Census-to-collection gaps
2.5 Partial Hospitalization (PHP) High High Session doc compliance, group billing
2.1 Intensive Outpatient (IOP) Moderate Moderate No-show revenue leakage, scheduling
1.0 Outpatient Low-Moderate Low-Moderate Volume-based, high throughput
OTP Opioid Treatment Program Specialized Very High (42 CFR Part 8) SAMHSA compliance, dispensing docs, DEA audits

Payer Mix Dimension

The payer profile determines revenue predictability and the intensity of RCM need.

Payer Profile RCM Complexity Revenue Predictability Primary Pain Points RCI Modifier
Commercial-Heavy (>60%) High Moderate-High Prior auth burden, network negotiations, denial mgmt 1.2x
Medicaid-Heavy (>60%) Moderate Low-Moderate Low reimbursement, state variation, volume pressure 0.9x
Out-of-Network Dominant Very High Low SCAs, patient collections, balance billing 1.4x
Private Pay Dominant Low High Collection processes, payment plans, minimal RCM need 0.5x
Hybrid/Balanced Moderate-High Moderate Multiple workflow complexity, varied doc requirements 1.0x

Dimensional Scoring Visualized

How ownership, timeline, and payer mix shape the Revenue Capture Index.

RCI Multipliers by Ownership Type

Typical Decision Timeline (Days)

Payer Mix RCI Modifiers

What the Market Actually Said

Patterns from discovery, pipeline analysis, and observation. Not hypotheses.

Ownership predicts velocity. Size doesn't.

A 30-bed facility with a single owner-operator closes faster than a 200-bed hospital-owned division where the BH budget has to survive three committees and an IT integration review.

PE-Backed → fastest when value is clear. VC/Startup → founders move quick. Owner-Operator → slow, but one approval. Nonprofit → grant cycles. Hospital → committees. State/County → procurement.

Qualify decision authority and approval process early. Stop assuming census correlates with buying readiness.

Existing Kipu customers are the obvious RCM play.

When the EMR is already Kipu, you're not doing competitive displacement. You're doing platform extension. The conversation starts from trust, technical barriers drop, and the value proposition shifts to unrealized potential.

The existing customer motion should look nothing like new logo. Treating them the same leaves velocity on the table.

OTP is its own world.

42 CFR Part 8, SAMHSA oversight, DEA registration, dispensing documentation that doesn't exist anywhere else. Qualify early for: SAMHSA accreditation, dispensing system integrations (ScriptPro, Omnicell), callback tracking, take-home dose docs, state regulatory variations, mobile med units.

Treating OTP as another LOC checkbox = failed implementations.

Revenue cycle breaks at documentation.

Not at the billing desk. Clinical staff who don't complete notes on time, don't use compliant templates, or don't understand the billing connection create denial patterns no RCM system can fix.

Red flags: clinician turnover >30%, doc backlogs past 48h, inconsistent templates, no clinical champion, prior tech failures.

Billing problems + solid clinical docs = great fit. Broken clinical workflows = needs EMR remediation first.

Tier 1: Accelerate

These close. Push them.

Existing Kipu

PE-Backed Multi-Site Residential

ASAM 3.1-3.7 • 100+ census • Commercial/Hybrid

DM: COO or VP Revenue Cycle

&zap; Board pressure on margin, 3rd-party biller underperformance

New Logo

Growth-Stage PHP/IOP Network

ASAM 2.1-2.5 • 50+ patients • Commercial-Heavy

DM: Founder/CEO or Clinical Director

&zap; Scaling pains, doc inconsistency across sites

Existing Kipu

Large OTP Network

OTP • 500+ patients • Medicaid-Heavy/Hybrid

DM: VP Ops or Compliance Director

&zap; Audit prep, SAMHSA survey pending, dispensing gaps

Tier 2: Standard Process

Existing or New

Nonprofit BH Network

501(c)(3) • Mixed LOC • 75+ patients • Medicaid/Grant-Funded

DM: ED or CFO

&zap; Grant reporting, outcomes data, audit readiness

Existing Kipu Preferred

Owner-Operator Residential

ASAM 3.1-3.5 • 40-80 beds • Commercial/Private Pay

DM: Owner

&zap; Biller frustration, compliance, succession planning

Tier 3: Conditional

Long Cycle

Hospital-Owned BH Division

Any LOC • Variable census • Enterprise EMR requirements

&zap; System-level BH initiative, Epic/Cerner willingness

RFP-Driven

State/County Programs

Often OTP or community MH • Procurement constraints • Multi-year timelines

&zap; Budget cycle timing, grant funding

RCI Score Multipliers

Revenue Capture Index. Math over gut feel.

Ownership Multipliers

OwnershipRCI Mult.Rationale
PE-Backed1.3xHigh urgency, board accountability
VC-Backed1.2xGrowth mandate, tech receptiveness
Startup/Growth1.0xStandard baseline
Owner-Operator0.9xLower velocity, conservative adoption
Hospital0.8xLong cycles, integration complexity
Nonprofit0.9xGrant dependencies, board approval
State/County0.6xProcurement requirements, political cycles

Payer Mix Modifiers

ProfileRCI Mult.Rationale
Commercial-Heavy1.2xHigh auth burden, denial mgmt need
Out-of-Network1.4xSCAs, collections, balance billing
Hybrid/Balanced1.0xMultiple workflow complexity
Medicaid-Heavy0.9xLow reimbursement, volume pressure
Private Pay0.5xMinimal RCM need

Existing Customer Multiplier

Kipu StatusRCI Mult.Rationale
Existing Kipu EMR1.25xIntegration advantage, lower implementation risk
Non-Kipu EMR1.0xStandard competitive displacement

When to Walk Away

Hard Stops

Private pay dominant (>80%), no billing need. Nationwide telehealth-only, no physical ops. Census under 20, no growth trajectory. Active bankruptcy. Failed Kipu implementation within 18 months.

Proceed with Caution

No decision-maker after 3 discovery attempts. Existing biller contract >18 months remaining. IT leadership blocking adoption. Clinical leadership turnover during evaluation.

Discovery Openers by Archetype

Not scripts. Starting points. The intent maps to what each ownership type cares about.

PE-Backed "When your board reviews rev cycle performance, which numbers start the hardest conversations?" Anchoring on board accountability.
Nonprofit "Walk me through how your documentation workflow supports your grant reporting." Connects docs to funding reality.
Owner-Op "You built this place. What keeps you up at night on billing and compliance?" It's personal for them. Honor that.
Hospital "How does your BH division's rev cycle fit into the broader system processes?" Surface the system vs. dept tension.
OTP "With SAMHSA and Part 8, how solid does your team feel about dispensing documentation?" Name the regulatory weight.