Healthcare IT Blog

Something changed on January 31, 2026 that most behavioral health practices are not ready for. Medicare updated its telehealth requirements for mental health services, and the consequences of non-compliance are not warnings or penalties. They are automatic claim denials with no path to appeal. If you have Medicare patients receiving telehealth services today and you are not tracking their in-person visit history, you are already at risk.

Behavioral health and psychiatric facilities operate in one of the most billing-complex environments in American healthcare. Inpatient psychiatric billing does not follow the same rules as medical/surgical inpatient billing. It does not use the same claim forms, the same reimbursement structures, or the same documentation standards. And yet, many facilities are running their revenue cycle on systems designed for general inpatient care, then wondering why their denial rates are high, their collections are slow, and their audits keep surfacing the same problems.

When behavioral health practices evaluate whether to keep billing in-house or outsource revenue cycle management (RCM), the comparison often begins with a single number: the biller’s salary. Unfortunately, that number rarely reflects the true cost of managing behavioral health billing internally.

Something changed on January 31, 2026 that most behavioral health practices are not prepared for. Medicare updated its telehealth requirements for mental health services, and the consequences are not warnings or penalties. They are automatic claim denials with no path to appeal.

Telehealth has permanently reshaped behavioral health care.

For psychiatrists, inpatient behavioral health facilities, and substance abuse treatment programs, 2026 is a pivotal year.

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.

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.

Behavioral health providers and stakeholders face unique financial and administrative challenges that can directly impact the stability of their practice.

Billing for behavioral health services has never been simple. Between (1) shifting regulations, (2) variable payer requirements, and (3) the nuances of mental health treatment, behavioral health providers face unique challenges that many general healthcare billing systems weren’t built to handle.