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SPEC·03 · Behavioral Health

Outpatient psych, IOP, PHP, residential, telehealth. The full continuum.

Authorization workflows that survive UM scrutiny. Level-of-care transitions billed cleanly. Parity-Act underpayment recovery. State-Medicaid quirks handled by the desk that lives in them.

Continuum
5 levels
of care
OP, IOP, PHP, residential, telehealth.
Same dedicated bench. Authorization continuity is the difference between collected and clawed back.
What we run

Six functions designed for auth-heavy revenue.

Behavioral revenue lives or dies on authorization continuity, level-of-care defensibility, and parity-act vigilance. Generic RCM teams lose money in all three places.

01

Authorization workflow & UM continuity

Initial auth, concurrent review, retro auth. Tracked to the calendar day. Notes pre-staged for UM calls so the level of care doesn’t get cut for paperwork reasons.

Initial / concurrent / retroUM-call prepDay-by-day tracking
  • Tracking: every active auth dated, with concurrent-review window flagged 48 hours ahead.
  • UM-call prep: clinical narrative + ASAM/CALOCUS criteria documented before the call, not during.
  • Retro auth: documentation requirements met cleanly when retro is the only path.
02

Level-of-care transitions

Step-up and step-down between PHP, IOP, OP, and residential billed cleanly. Date discipline matters. an overlap or a gap is a denial. We track them.

PHP / IOP / OP / RTCStep-up / step-downDate discipline
  • Continuity: discharge from one LOC and admit to next reconciled to the day.
  • Documentation: medical necessity for the new LOC documented before the transition bills.
  • Bundling awareness: H-codes, S-codes, revenue codes used correctly per state and payer rules.
03

Parity Act underpayment recovery

Federal MHPAEA and state parity laws are routinely under-enforced by payers. We pull the data, show the variance, and pursue recovery. including external complaints when warranted.

MHPAEAState parityExternal complaints
  • Method: paid amounts vs. comparable medical/surgical lines analyzed quarterly.
  • Pursuit: provider-side appeal first, then state DOI / federal complaint where evidence supports it.
  • Reporting: parity disparities documented for your compliance officer and board.
04

Telehealth coding & place-of-service

Modifier 95, GT, FQ; POS 02 vs 10; audio-only nuance. Rules shift constantly. We maintain the matrix per payer per state and update it weekly.

POS 02 / 10Modifier 95 / GT / FQAudio-only
  • Matrix: per-payer, per-state telehealth rule library, updated weekly.
  • Audio-only: documented per payer policy. State Medicaid quirks tracked.
  • Cross-state licensure: provider state-of-license vs. patient location flagged before billing.
05

Medicaid & MCO billing

State Medicaid is where behavioral revenue lives, and where it gets buried. Specific MCO contract rules, T-codes, H-codes, and waiver-program billing handled by the bench, not by Google.

State MedicaidMCO contractsWaiver programs
  • Coverage: 50-state Medicaid plus major MCOs (Centene, Molina, UHC Community, BCBS Medicaid).
  • Waiver programs: HCBS waivers, 1915(c), CCBHC billing patterns understood per state.
  • T & H codes: state-specific service-code interpretation maintained per Medicaid manual.
06

Single-case agreements & out-of-network

Behavioral books often run a meaningful OON volume. SCA negotiation, gap exceptions, balance billing under NSA, and IDR readiness all handled by senior partners with payer-side experience.

SCA negotiationGap exceptionsNSA / IDR
  • SCA workflow: structured negotiation pack. clinical justification + outcome data + market rate.
  • NSA compliance: balance-bill protections respected; IDR initiated where evidence supports.
  • OON optimization: rate trending, payer-by-payer, with gap-exception escalation paths.
Where behavioral revenue typically leaks

Six structural leak points.

LEAK 01
Concurrent review missed

UM window passes; LOC denied retroactively. Clinical care continues, payment doesn’t.

LEAK 02
Level-of-care overlap

Step-down billed before discharge from prior LOC. Single-day overlap denies the entire stay.

LEAK 03
Parity-act blindness

Behavioral paid below comparable medical lines. Variance never measured, never recovered.

LEAK 04
Telehealth code drift

POS 02 vs 10 mis-matched. Modifier 95/GT/FQ rules applied to last quarter’s policy. Denials silent.

LEAK 05
State Medicaid quirk

T-code interpretation off by a unit definition. State manual updated; vendor didn’t notice.

LEAK 06
OON without SCA

Out-of-network volume billed without SCA, without gap exception. Patient gets balance, you get complaints.

Engagement format

Five phases. Same partner.

DAY 1-15
Auth audit

30 days of active auths reviewed for continuity, documentation, UM posture. Baseline locked.

DAY 16-30
Parity read

Paid claims compared to comparable medical lines. Variance documented for compliance + board.

DAY 31-60
Cutover

Behavioral bench assigned. State-Medicaid matrix loaded. Parallel run on first cycle.

DAY 61-90
First scorecard

Auth continuity, denial rate, parity variance, AR aging. reviewed with clinical leadership.

QUARTERLY
QBR + parity refresh

Senior partner walks scorecard. Parity variance pursued. Telehealth matrix refreshed.

What we put in writing

Six SLAs. Behavioral-specific.

METRICTARGETWHY IT MATTERS
Authorization continuity99%+% of LOC days with active auth on file. Tracked daily, reported weekly.
Concurrent-review on-time rate98%+% of UM concurrent reviews submitted before window expires. Coached, not policed.
Denial rate< 6%Behavioral-typical. auth and LOC density makes this slightly higher than physician baseline.
Days in AR (dollar-weighted)35-45Behavioral-typical range. State-Medicaid mix-adjusted.
Parity recoveryQuarterly reviewVariance against comparable medical/surgical lines, with recovery actions documented.
Net collection rate94-97%Behavioral-realistic. State Medicaid and OON volume make 98% rare.
THE STRUCTURAL CHOICE

The bench lives in this work. They don’t rotate out.

Behavioral RCM is unforgiving. auth windows, LOC documentation, state-Medicaid quirks, telehealth-rule churn. The vendors who treat it as a side line lose money quietly. Our behavioral bench is dedicated, has 10+ years per senior, and reads the state Medicaid bulletins on Mondays.

WHAT THAT MEANS IN PRACTICE

Continuity, not generalist coverage.

  • Dedicated behavioral senior. not a generic ops director with a behavioral client.
  • 50-state Medicaid matrix. updated weekly, by the same desk every week.
  • Telehealth rule library. per payer, per state, refreshed for each policy update.
  • Parity-Act vigilance. quarterly variance review, documented for your compliance officer.
  • UM-call prep. clinical narrative pre-staged, not improvised.
Behavioral scorecard

Four monthly outcomes.

Auth continuity
% of LOC days with active auth
Tracked daily
Denial rate
By payer + root cause
Auth-density adjusted
Parity variance
Vs. comparable med/surg
Quarterly review
Net collection rate
Behavioral-realistic
CFO-audited annually

Get a free auth-continuity audit.

Send us 30 days of active auth records. We’ll send back a continuity, documentation, and concurrent-review readiness assessment. No obligation.