Jay Tobey: Can Behavioral Health Break Its Fragmentation?

12/19/24 • 15 min

Jay Tobey is an entrepreneur and founder of Northstar Recovery and Wellness who combines passion, philanthropy, and strategy to tackle one of the most pressing challenges of our time—creating a seamless continuum of care in the fragmented behavioral health industry. We spoke about his entrepreneurial journey, the cracks in the mental health and substance abuse system, and his innovative investment model blending real estate with operational support to drive long-term recovery outcomes.

One of the most striking statistics Jay shared was that "one in six people have a substance abuse disorder and nearly 25% of adults have struggled with a mental illness at some point." Yet, only a fraction of those in need receive treatment, highlighting the urgency of rethinking current systems.

Jay discusses the critical gaps he identified, such as the lack of consistent care and the challenge of patients falling through the cracks when transitioning between facilities. His solution? Building a "continuum of care for inpatient, supportive housing, sober living, and long-term outpatient" to ensure sustainable recovery over years, not just weeks.

In addition to tackling systemic issues, Jay shares how his "personal board of directors"—trusted mentors who are ten steps ahead—has guided his strategic decisions, from structuring share ownership to maximizing tax benefits during exits.

Key Takeaways:

Long-term Recovery vs. Quick Fixes: Jay emphasizes the need to shift from 90-day programs dictated by insurance to multi-year solutions: "Each year someone is clean and in recovery, statistically their chances of staying clean skyrocket."
Fragmentation in Behavioral Health: The top companies hold only 1% of the market share, leading to a highly fragmented system that requires tailored approaches based on geography and population.
Real Estate as a Backbone: Jay’s investment model blends private equity with real estate to scale facilities quickly while ensuring investor security.
Continuous Improvement Through Data: He challenges operators to prove outcomes: "Are you tracking your data? Are you proving that people are having long-term success with you?"

This episode offers a mix of entrepreneurial insights, bold investment strategies, and a heartfelt commitment to helping those in need. Whether you’re in healthcare, real estate, or looking to make an impact through business, Jay’s approach will inspire and challenge you.

Key Takeaways:

Long-term Recovery vs. Quick Fixes: Jay emphasizes the need to shift from 90-day programs dictated by insurance to multi-year solutions: "Each year someone is clean and in recovery, statistically their chances of staying clean skyrocket."
Fragmentation in Behavioral Health: The top companies hold only 1% of the market share, leading to a highly fragmented system that requires tailored approaches based on geography and population.
Real Estate as a Backbone: Jay’s investment model blends private equity with real estate to scale facilities quickly while ensuring investor security.
Continuous Improvement Through Data: He challenges operators to prove outcomes: "Are you tracking your data? Are you proving that people are having long-term success with you?"

Previous Episode

Oleg Romanov: Is AI the Key to Accelerating Your Business Growth?

Oleg Romanov is a seasoned IT entrepreneur and AI expert based in London, with a mission to help businesses harness the transformative power of artificial intelligence. We spoke about practical ways AI can solve real business challenges, such as streamlining operations, boosting efficiency, and unlocking new growth opportunities.

Oleg shared an inspiring case study from the real estate industry, where AI-powered assistants revolutionized lead management and sales processes. "We connected this AI assistant to his website and social media, and now it handles thousands of consultations instantly," he explained. This solution freed up managers to focus on closing deals, ultimately enabling the company to scale its advertising and grow exponentially.

Key topics included:

Identifying the Right Problem: Oleg emphasizes that AI implementation begins with pinpointing your business's main pain point. "It's the thing that stops you from growing 10 times now," he shared.
Strategic AI Integration: From chatbots to advanced automation, Oleg outlined steps to leverage AI effectively while avoiding common pitfalls.
Mindset and Growth: Drawing from his Muay Thai experience, Oleg highlighted resilience and determination as critical traits for entrepreneurs: "There is always a chance to win, even if it’s just 5%—you can win. Never give up."
Mentorship and Collaboration: Oleg also shared how partnering with like-minded individuals can amplify success, saying, "When 1 plus 1 equals 11, it really helps to move forward."

Takeaways:

AI is a tool, not a magic solution. It works best when targeted at specific business goals.
Collaboration and the right support network are key to entrepreneurial success.
Personal development and continuous learning are crucial investments for any entrepreneur.

Whether you're an established business owner or an aspiring entrepreneur, this episode offers actionable insights on integrating AI, fostering resilience, and building strong partnerships to achieve your goals.

Next Episode

Samantha Upchurch: Can You Build Millions from Scratch?

Samantha Upchurch is a passionate entrepreneur and health advocate who shared her transformative journey from poverty to building multimillion-dollar businesses. We spoke about her life-altering experiences, the five-step process she developed to achieve success, and how resilience and health play pivotal roles in sustaining it.

Samantha's story began in a small Greek village, where simplicity and close community ties shaped her early years. But life took an unexpected turn when her family moved to England, leaving her with nothing but the determination to rewrite her destiny. "At the age of 8 or 9, I asked myself, ‘Am I okay with this life?’ And the answer was a resounding no," she recalled.

Through her journey, Samantha discovered the importance of resilience. She emphasized, “Resilience isn’t just bouncing back; it’s actually bouncing forward.” Her approach involves reframing failures into stepping stones and leveraging past experiences to navigate current obstacles.

She also underscored the role of passion and work ethic in achieving goals: “Passion is the engine, and strategy is the vehicle,” she stated. Samantha’s actionable advice includes writing down strengths, weaknesses, and opportunities to gain clarity and focus on what drives you.

Finally, Samantha revealed a key insight: success is as much about health as it is about mindset. “How can you pour into a successful business from an empty cup? You can’t,” she said, stressing the need to address both psychological and biochemical imbalances.

Key Takeaways

Reprogram Your Mind: Identify limiting beliefs and transform them into empowering thoughts.
Discover Your Passion: “Without passion, challenges will defeat you.” Find what excites you and turn it into opportunity.
Adopt Relentless Work Ethic: Consistency beats intensity every time. Schedule your efforts and focus on high-value tasks.
Cultivate Resilience: Learn from failures, and use them as steps to move forward.
Prioritize Health: Balance psychological well-being with nutritional alignment to sustain long-term success.

Samantha’s journey is a testament to the power of mindset, hard work, and a holistic approach to life. This episode is packed with actionable advice and inspiration for anyone ready to rewrite their own story.