Billing Services for Therapists: What to Look for in a Reliable Provider

Why Billing Is So Difficult for Therapists

For most therapists, billing is the part of the job that feels least like “therapy.” You didn’t get into this field to chase down prior authorizations, decipher claim adjustment codes, or appeal denials that make no clinical sense. Yet without an effective billing system, the financial stability of your practice—and your ability to keep serving clients—is at risk.

That’s why many therapists turn to billing service providers. The right partner can free up hours of administrative time, reduce stress, and dramatically improve collections. But not all billing companies are created equal. Some promise easy solutions yet fail to understand the complexities of behavioral health billing. Others may handle claims but leave you stranded when denials come back.

At ADS, we’ve worked with thousands of clinicians who’ve faced this exact problem. The providers who thrive are those who choose a billing partner with the right mix of expertise, technology, and service. Here’s what to look for when evaluating billing services for therapists.

1. Deep Expertise in Behavioral Health Billing

Billing for therapy is very different from billing for primary care or surgical specialties. Codes like 90832 (30 minutes of psychotherapy), 90834 (45 minutes), and 90837 (60 minutes) all require strict documentation and time tracking. Add-on codes for psychotherapy with E/M (90833, 90836, 90838) add further complexity.

A reliable billing provider must:

● Understand time-based psychotherapy codes and their thresholds.

● Know payer-specific requirements for documentation and modifiers.

● Stay current with telehealth billing rules, which vary across insurers.

● Anticipate common pitfalls—such as exceeding session limits or missing prior authorization renewals.

If your billing company doesn’t specialize in behavioral health, you’ll end up training them instead of getting support.

🔗 Explore ADS’s Behavioral Health & Addiction Treatment solutions for a look at how we tailor billing systems to therapists.

2. Robust Eligibility and Benefits Verification

One of the most common reasons therapy claims are denied? The client wasn’t eligible for coverage at the time of service, or the session exceeded plan limits.

The right billing service should:

● Verify eligibility and benefits in real time.

● Check for visit caps (e.g., “20 sessions per year”) and track usage.

● Identify whether prior authorization is required and manage renewals proactively.

When eligibility checks are baked into the workflow, you avoid wasted sessions and denied claims—while setting realistic expectations with clients about their financial responsibility.

3. Denial Management and Appeals Expertise

Even with perfect documentation, denials happen. The difference between a good billing partner and a great one is what happens next.

Look for providers who:

● Track denials by reason code and payer.

● File corrected claims or appeals within days, not weeks.

● Maintain templates for common payer disputes (e.g., “medical necessity” for extended therapy sessions).

● Report back to you with clear denial trends so you can adjust upstream processes.

Denials aren’t just noise—they’re data. A billing service that learns from denials and adapts your workflows will save you money and headaches in the long run.

4. Compliance with Privacy and Security Rules

Therapists work with some of the most sensitive data in healthcare. That means your billing partner must be compliant with HIPAA and, in some cases, 42 CFR Part 2, which governs substance use disorder treatment records.

Ask potential providers:

● How do you secure electronic protected health information (ePHI)?

● Do you have role-based access controls?

● Are staff trained annually on HIPAA and behavioral health privacy rules?

● How do you handle consent and redisclosure under Part 2?

A trustworthy billing company treats compliance as foundational—not optional.

5. Transparent Reporting and Metrics

You can’t improve what you can’t measure. A strong billing partner will provide regular reports on:

● Collections rate (how much of what you bill actually gets paid).

● First-Pass Resolution Rate (FPRR) (claims paid on first submission).

● Denial rate by payer.

● Days in Accounts Receivable (A/R).

These reports should be clear, actionable, and tailored to your practice—not generic spreadsheets.

🔗 See how ADS approaches revenue reporting in our RCM Services guide.

6. Integration with Your EHR or Practice Management System

Therapists often juggle multiple platforms—scheduling, clinical notes, billing, and telehealth. The last thing you need is another system that doesn’t talk to the rest.

The best billing services integrate seamlessly with your EHR or practice management software. This ensures:

● Demographics and diagnoses flow directly into claims.

● Session notes and treatment plans are linked to billing codes.

● Double entry (and the errors it creates) are eliminated.

Integration saves time, reduces errors, and improves compliance.

7. Human Support That Understands Your World

Finally, billing isn’t just about technology—it’s about people. Therapists need partners who understand the emotional and logistical realities of running a practice.

Ask yourself:

● Do I have a dedicated account manager who responds quickly?

● Does the billing team explain payer rules in plain language?

● Do I feel like they’re invested in my success, not just processing claims?

A reliable billing service feels like an extension of your team. When issues arise, you shouldn’t feel alone—you should feel supported.

Choose a Partner, Not Just a Vendor

Therapy is demanding work. The last thing you should worry about is whether your claims are being handled correctly. The right billing service provides peace of mind, financial stability, and the freedom to focus on what matters most: your clients.

When evaluating billing services for therapists, look for specialized expertise, proactive denial management, airtight compliance, and transparent reporting. These aren’t extras—they’re essentials.

At ADS, we believe billing should empower therapists, not burden them. With our MedicsCloud platform and RCM services, we combine behavioral health expertise with automation and personalized support. The result? Fewer denials, faster payments, and more time for you to do the work you love.

🔗 Want to see what that looks like in practice? Explore our Behavioral Health RCM solutions or request a live demo