Billing often becomes one of the biggest administrative burdens for solo and small behavioral health practices. Many such practices begin with a do-it-yourself approach, only to find that managing claims, denials, and payments takes their focus away from clinical and operational priorities.

Psychiatrists spend just over 20% of their time on administrative tasks, according to a study in the International Journal of Health Services—that’s 22% more time than the average physician spends on administration.

Behavioral health providers managing both clinical care and business operations face unique challenges: complex prior authorization requirements, extensive documentation standards, and insurance coverage barriers. Reliable billing support can help reduce that administrative workload, stabilize cash flow, and let providers devote their energy to what matters most: patient care.

Why DIY Billing Gets Harder Over Time

At many solo or small practices, billing tasks fall to front office staff or clinicians themselves. Each step of the billing process requires people to have specialized knowledge and to be able to maintain consistent follow-through.

Payer rules and coding requirements change frequently, making it difficult for people already juggling multiple responsibilities to stay current with the updates. As patient volume increases, small inefficiencies can turn into serious issues. Practices may experience more back-and-forth with payers, slower reimbursements, and a higher risk of errors.

Insurers denied 19% of in-network claims in 2023, according to the Kaiser Family Foundation. Addressing so many denials creates a significant burden for practices that are already short on time.

What Makes Billing So Demanding

Submitting accurate claims requires understanding CPT codes, modifiers, and specific payer requirements that can vary by insurance company. And when claims get denied, staff must identify and correct the issue. Common reasons for denied claims include using the wrong code or submitting incomplete documentation. Once a problem has been addressed, a claim can be resubmitted—but, obviously, this entire process requires time and attention. That is time and attention that could be spent on other priorities.

And a practice’s work isn’t finished when payment arrives from an insurance company. Once payments come in, they must be recorded and allocated correctly—a process called payment posting. Payment posting involves matching incoming payments to the right services and patients, which can become complicated when patients have multiple insurance plans or when payments don’t match what was billed.

When it comes to patient billing, staff must manage communications about balances, set up payment plans, and handle questions about coverage. High-deductible plans mean more patients owe money to a practice directly, which can create even more work—and more urgency.

Mental health billing training can help providers or staff navigate these complexities, but also adds another demand to keep up with.

When to Consider a Different Approach

Billing issues tend to build over time, but certain patterns can indicate that it’s time for a practice to turn to external support. Solo providers may find themselves spending too much time on billing tasks, or struggling to manage billing alongside a trusted assistant who helps with the practice.

Keeping up with changing payer requirements can become harder when a practitioner is already stretched thin. And behavioral health billing presents unique challenges that require specialized knowledge of mental health codes and documentation requirements. The administrative side of running a practice requires specialized business skills that are quite different from clinical expertise. Managing both clinical care and complex billing processes can stretch even the most capable providers beyond their bandwidth.

Bringing in billing support can reduce a practice’s administrative burden and improve its payment consistency. Revenue cycle management (RCM) services are one way to help ensure accurate submissions, reduce claim denials, and free up time for key clinical and operational work.

What to Look For in a Billing Solution

Small behavioral health practices need billing support that aligns with their clinical and operational priorities. Many practices find that EHR with billing services provides the most streamlined approach, allowing clinical and financial workflows to work together seamlessly. This integration reduces the need for duplicate data entry and helps ensure that billing information stays accurate and up-to-date. Look for solutions that offer:

• Deep knowledge of behavioral health billing, including common codes and payer requirements
• Full support across the billing cycle, including claims, denials, payments, and patient statements
• Clear reporting and reliable communication
• Tools for both insurance billing and patient payments
• Integration with clinical systems to reduce administrative steps

An effective billing solution can reduce workload and improve financial stability. Valant offers end-to-end billing services built specifically for solo psychiatry practices and small behavioral health providers that bill insurance, making it easier for these practices to stay organized, compliant, and focused on care.

Why Improving Billing Matters

As operational demands grow, so do the risks of delays, errors, and lost revenue. Small mistakes in the billing process can easily slip through when staff are managing multiple responsibilities. Common mistakes include using the wrong CPT modifier, leaving out a required diagnosis code, or failing to follow up on a denied claim, These errors may seem minor at first, but they can lead to serious disruptions in cash flow if they aren’t caught and corrected quickly.

RCM services offer targeted support by managing the full billing process: submitting claims, resolving denials, posting payments, and sending patient statements. Many services also include claims scrubbing, insurance eligibility checks, and reconciliation reporting, all of which help ensure accuracy before a claim is ever submitted. This level of oversight can prevent problems that might otherwise go unnoticed and lead to delayed reimbursements.

Behavioral health RCM services can also make compliance easier by providing clear documentation, audit trails, and HIPAA-compliant systems that reduce risk for small practices. The unique needs of the field mean that one-size-fits all solutions may not be adequate.

For solo prescribers using Valant, billing services are integrated with the same system already used for clinical notes, scheduling, and patient records—eliminating the need to manage multiple vendors or platforms. That means fewer gaps in communication, fewer manual steps—and fewer things that slip through the cracks.

Reliable billing support can make a meaningful difference in both day-to-day operations and long-term sustainability for a solo or small practice. That support adds stability and frees up time for patient care, while also providing peace of mind around the financial health of the practice