Behavioral health medical billing is an important aspect of mental health care. It involves the process of payment for mental health services rendered. These processes include invoicing, claims submission, payment tracking and management, supervising health claims, reducing denial rates, and improving revenue cycle management (RCM).

The article will explore the best behavioral health medical billing software to use in 2025. It will also describe each software’s salient features. This will help you to choose the best behavioral health billing software that suits your practice.

1. ClinicSource

ClinicSource is behavioral health medical billing software founded in 2003. The software renders billing services including claim management, eligibility verification, and posting of payment. It supports insurance and client invoicing. Clients can also make payments online with ease. ClinicSource can be incorporated within Electronic Health Records Systems (EHRs). This is done to ensure the smooth management of client data.

It has a good practice management system, good customer support, and great functionality needed by larger practices. But, some users have found out that it is complex to use as it has only a few customizable features. Pricing for new users begins at $79.95 per month. There is room for additional users which costs $41.70 monthly and part-time users cost $14.95 per month.

2. CareCloud

CareCloud was previously known as Medical Transcription Billing Corporation (MTBC). As a behavioral health medical billing software, it was founded in 1999. CareCloud provides a host of features, including automated billing, claims submissions, RCM and payment tracking. It also provides features such as client engagement, EHR integration, and client reporting tools. CareCloud also comes with an incorporated remote server that ensures easy access to client data. This software provides important information such as financial analysis and revenue cycle optimization.

The goal of this platform is to promote work efficiency and client management. However, some users have expressed concerns involving cloud storage security. The software does not offer a trial version and the pricing can range from $349 to $629 per month.

3. Kareo

Kareo is a behavioral health medical billing software established in 2004. It is specifically designed to meet the needs of psychiatrists and mental health practitioners. Kareo’s features include client billing, insurance verification, and submission of electronic claims. It also has an interface that is user-friendly and provides good customer support. Despite its ability to simplify workflows, one disadvantage is that it can be a bit pricey for small practices. Also, some users have reported a steep learning curve for the software. Kareo costs from $349 to $549 per month.

4. Valant

Valant is a cloud-based solution created in 2005 by David and Ben Lischner. Valant provides end-to-end billing, client insurance verification, and management of claims. The software is designed to provide support for behavioral health private practices. This support includes the clinical, financial, and administrative workflow of these practices. Valant is also Health Insurance Portability and Accountability Act (HIPAA) compliant.  It provides easy integration with EHRs. Valant provides remote care delivery, but its pricing may be expensive for small practices. Pricing varies depending on the size of the user’s practice, but it begins at $100 monthly.

5. TheraNest

TheraNest was initiated by Shegun Otulana in 2013. The software provides tools such as integrated billing and invoicing. It is an ideal solution for private practices that are looking to streamline their billing processes. It is HIPAA-compliant and comes with customizable treatment plans. It also comes with a 21-day free trial. TheraNest may not be suitable for large practices because of its caseload-based pricing.

6. SimplePractice

SimplePractice was created in 2012 by Howard Spector. It is a widely used behavioral medical health billing software. It provides services including scheduling of appointments, billings and payments, and insurance claims. This software is HIPAA-compliant and is ideal for private practices. Some users have reported that the software is better suited for larger practices than smaller ones. SimplePractice offers a free trial, with its pricing starting from $17.40 - $59.40 monthly.

7. Practice Fusion

Practice Fusion is a behavioral health medical billing software that is cloud-based. The company was established by Ryan Howard in 2005 and was bought by Allscripts in 2018. Practice Fusion comes with a built-in billing system that is designed to handle insurance claims and payments. It is great for mental health therapists in private practice. Practice Fusion offers an EHR system that can be used for digital storage and management of client records. Its pricing starts at $149 per month.

Things to Consider When Choosing the Right Behavioral Health Medical Billing Software for Your Practice

Mental health therapists need to ask informed questions when choosing the best behavioral health medical billing software for their practice. Some key questions to consider include:

1. Is the software specifically designed for behavioral health practices or is it only general medical billing?

2. Does it meet the necessary standards and regulations of the mental and behavioral health industry?

3. What specific behavioral health billing feature does the software offer?

4. What type of therapy (individual, group, family) does the behavioral health billing software cover?

5. What type of provider are you (i.e. psychologist, psychiatrist, counsellor or social worker)?

6. Does its features include managing insurance claims, authorizations, and denials? These features are unique to the behavioral health industries.

7. Can the billing software be integrated with an EHR that you currently use or plan to use?

8. Is training and onboarding support provided?

9. Can it help to track your practice’s financial performance or productivity?

10. Does the software come with data encryption? And what security measures are put in place to protect sensitive client data.

11. Can the software accommodate the growth of your practice?

12. Does the software support multi-disciplinary practices and various service types? Can it be used for practices where the services of psychologists, psychiatrists, or social workers are provided?

13. What is the pricing structure? Are there any hidden fees (i.e. maintenance or additional features charges)?

14. Does the software offer interoperability services? Does it allow the flow of information between healthcare systems (e.g. labs, pharmacies, or referring providers)?

15. What types of financial or operational reports can be generated by the software?

16. How long has the vendor been in operation and what is their reputation?

Why Should I Adopt Behavioral Medical Billing Software?

1. Behavioral health services involve a wide range of treatments. These include assessments, psychotherapy sessions, or psychiatric services. Other services can include substance abuse treatment or neurological testing. Billing of each service is unique and thus requires billing software to accommodate these differences while managing them effectively.

2. Mental and Behavioral health treatment can be individual, family or group interventions. Behavioral health software can manage these diverse treatment plans to ensure accurate billing. They also provide detailed financial reports to help in the management of cashflow.

3. Health insurance coverage for mental health services is limited compared to medical services. Some insurance plans may not cover certain behavioral health services. This often leads clients to pay out-of-pocket. When billing is done manually it can make it difficult to track payment in such cases. Hence, behavioral health medical billing software makes it easy to seamlessly track all types of payments.

4. Behavioral health services need specific coding systems including ICD-10 and CPT. Other coding systems include the Healthcare Common Procedure Coding System (HCPCS) and the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, Text Revision (DSM-5-TR). These different codes can make claims difficult to track. Using billing software makes these codes easy to track, invariably tracking payment.

Conclusion  

Selecting the right behavioral health billing software is quite essential for every practice. Whether it is a small or large practice, you need to consider if the behavioral health medical billing software you wish to adopt is the best one for your practice. With the list we have curated above, you can make an informed decision, which will help you save costs in the long-run. It will also make your billing operations easier!

FAQs

1.        What Are The Benefits of Adopting Behavioral Health Medical Billing Software?

Adopting behavioral health medical billing software leads to improved accuracy, efficiency, and Revenue Cycle Management (RCM).

2. Can I Use Medical Billing Software For a Small Practice?

Yes, practices of all scales can immensely benefit from adopting a streamlined billing system. This will reduce the administrative burden and increase profit. However, you should consider your ROI against the cost of the software when making a choice.

3. How Is Behavioral Health Medical Billing Software Different From Traditional Medical Billing?

Behavioral health billing software addresses the unique demands of mental health practice. It is most beneficial for practices that require larger specific documentation and complex insurance codes.