The recent pandemic upended many established ways of doing business, and challenged many assumptions about how work could, and should, be organized. One of the industries affected has been behavioral health.

Reeling from stress and burnout exacerbated by the pandemic, many mental health professionals have begun the question whether existing delivery models of for-profit companies, community mental health centers or solo practice were really delivering the best value for patients and therapists alike. Valuing the comradery found in a shared practice yet seeking more influence and control over policy and working conditions, many in the mental health field are turning to the cooperative model as a way to achieve a better work-life balance, while also delivering high quality care for clients.  Catalyst Cooperative Healing is one such company.

Inspired by the conversion of Alliance Psychological Services of New York from a sole proprietorship to a worker-owned cooperative (a project completed with technical assistance from our affiliate, the ICA Group) three therapists in Holyoke, MA sought to create their own worker-owned therapy practice. But the project, while long on vision and commitment, was a bit short on collateral.  Needing some short-term funds to cover payroll and other operating expenses while waiting for public payment and cover the onboarding costs, while new therapists in the practice built their book of business. The group turned to FJWO to help. The Fund offered a $35,000 working capital loan as the solution.

Within the first six months, the cooperative made good on these commitments, expanding its membership from three to six therapists, and beginning to turn consistent profits. Cooperative members have continued to implement services goals that are important to them as a practice, such as welcoming public pay clients even if that meant waiting several months for payment and offering a sliding scale payment option for people without adequate insurance. With creative financing from organizations like FJWO, cooperators like these can be part of building a better mental health care system for all.

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