Marc Klar

By: Marc Klar on October 2nd, 2025

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Therapy Billing Services: A Step-by-Step Guide to Getting Paid Faster

behavioral health

Why Timely Payments Matter in Therapy Practices

For therapists, billing often feels like a necessary evil. You spend your day helping clients navigate life’s challenges—then end up spending your evenings fighting with insurance portals, correcting denials, or wondering when a claim will finally be paid.

The reality is this: without a streamlined billing process, many therapy practices struggle to maintain financial stability. Cash flow slows, administrative burden increases, and clinicians find themselves stretched too thin.

That’s where therapy billing services come in. A reliable billing partner helps ensure you get paid promptly and accurately, allowing you to focus on what you do best—providing care. But even with a billing service, your practice benefits from a clear, step-by-step workflow designed to eliminate delays.

Here’s a practical guide to getting paid faster, built on ADS’s decades of experience supporting behavioral health providers.

 

Step 1: Verify Eligibility and Benefits Upfront

The most common cause of claim denials in therapy practices is simple: the client wasn’t eligible, or the service wasn’t covered.

Best practices:

● Run real-time eligibility checks before the first appointment.

● Confirm co-pays, deductibles, and visit caps.

● Identify whether prior authorization is required for extended therapy sessions.

By doing this at intake, you avoid unpaid sessions and help clients understand their financial responsibility from day one.

🔗 Learn how ADS automates this process in our Medical Billing & RCM Services guide.

 

Step 2: Document Thoroughly and Accurately

Payers want evidence of medical necessity. For therapy, this means your notes must do more than record “session completed.”

Include in every note:

● Diagnosis and presenting symptoms.

● Interventions used during the session.

● Client’s response to treatment.

● Progress toward goals.

● Time spent (to justify codes like 90832, 90834, or 90837).

Structured documentation not only reduces denials but also protects your practice in audits.

🔗 See how ADS aligns documentation with billing in our Behavioral Health RCM insights.

 

Step 3: Submit Clean Claims Quickly

Delays in submission equal delays in payment. A clean claim—one that has the right codes, modifiers, and documentation—is far more likely to be paid on the first try.

Tips:

● Use an AI-powered rules engine to catch errors before claims go out.

● Apply the correct place of service (POS) codes for in-person vs. telehealth visits.

● Attach required modifiers (e.g., 95 for telehealth) consistently.

● Submit claims electronically whenever possible.

Therapists should aim for a First-Pass Resolution Rate (FPRR) of 90% or higher.

 

Step 4: Monitor Denials and Act Quickly

Denials aren’t just an annoyance—they’re a learning opportunity. The key is to respond fast and look for patterns.

Best practices:

● Review denials daily or weekly.

● Categorize by reason (eligibility, coding, documentation).

● Resubmit corrected claims within 24–48 hours.

● Track payer-specific trends and adjust intake or documentation accordingly.

A strong billing service won’t just resubmit denials—they’ll help you prevent them from happening again.

 

Step 5: Adopt ERA/EFT for Faster Cash Flow

Gone are the days of waiting for paper checks and manually posting payments. With Electronic Remittance Advice (ERA) and Electronic Funds Transfer (EFT):

● Payments hit your bank account faster.

● Remittances post automatically to your billing system.

● Cash flow becomes more predictable.

If your billing partner hasn’t implemented ERA/EFT across your payer mix, you’re leaving efficiency on the table.

 

Step 6: Reconcile Payments and Patient Balances

Accurate payment posting is critical—not only for financial reporting but also for client trust. Nothing undermines a therapeutic relationship faster than incorrect billing statements.

Your billing service should:

● Reconcile every payment against the original claim.

● Flag underpayments relative to contracted rates.

● Ensure patient balances are updated promptly.

Transparent billing builds confidence with clients and prevents surprises.

Step 7: Use Analytics to Drive Improvement

Revenue cycle management isn’t just about transactions—it’s about insights.


The best therapy billing services provide dashboards that show:

● Average days in accounts receivable.

● Denial rates by payer.

● FPRR trends over time.

● Collections rate vs. charges.

These metrics help you identify bottlenecks and make informed decisions about staffing, payer contracts, and service mix.

 

🔗 ADS provides this level of visibility in our Medical Billing & RCM Services.

 

Step 8: Keep Compliance Front and Center

Therapy billing involves some of the most sensitive data in healthcare. That means compliance isn’t optional—it’s essential.

Your billing workflows must adhere to:

● HIPAA (for patient privacy).

● 42 CFR Part 2 (for substance use disorder treatment records).

●State-specific behavioral health regulations.

The right billing service will have built-in safeguards like role-based access, encryption, and audit trails.

 

Building a Revenue-Safe Routine

Getting paid faster in therapy isn’t about shortcuts—it’s about consistency. By following a clear, step-by-step process, you can eliminate common bottlenecks, reduce denials, and build a stable financial foundation for your practice.

The essentials are straightforward: verify benefits upfront, document thoroughly, submit clean claims quickly, learn from denials, adopt ERA/EFT, reconcile accurately, measure performance, and stay compliant.

At ADS, we’ve built our therapy billing services to support exactly this routine. With MedicsCloud, AI-driven denial prevention, and behavioral health expertise, we help therapists get paid faster, with fewer denials, and more peace of mind.

🔗 Ready to simplify your billing? Explore our Behavioral Health & Addiction Treatment billing solutions or request a live demo today.

About Marc Klar

Marc has decades of experience in medical software sales, marketing, and management.

As Vice President of Marketing, Marc oversees the entire marketing effort for ADS (the MedicsCloud Suite) and ADS RCM (MedicsRCM).

Among other things, Marc enjoys writing (he’s had articles published), reading, cooking, and performing comedy which sometimes isn’t funny for him or his audience. An accomplished drummer, Marc has studied with some of the top jazz drummers in NYC, and he plays with two jazz big bands. Marc was in the 199th Army Band because the first 198 didn’t want him, and he has taught drumming at several music schools.

​ Next: read our ADS and ADS RCM blogs, ebooks and whitepapers. They’ll stimulate your brain as well.