Behavioral HealthDenver, CO

Mindful Therapy Partners: 25% Reduction in AR Days

How a growing mental health practice streamlined prior authorizations and improved therapy session billing to achieve consistent cash flow.

Practice Overview

Practice Type: Multi-disciplinary mental health group
Providers: 8 therapists, 3 psychiatrists, 2 social workers
Services: Individual, group, family therapy, medication management
Monthly Sessions: 2,100+ therapy sessions

The Challenge

Mindful Therapy Partners was experiencing significant operational challenges that impacted both patient care and revenue:

  • Authorization bottlenecks: 28% of sessions required prior authorization, with 71% approval rate
  • Session coding errors: Time-based therapy codes were frequently misapplied
  • Documentation gaps: Treatment plans didn't support medical necessity requirements
  • Group therapy confusion: Complex billing rules for group sessions led to underpayment

Baseline Performance

81.2%
First-Pass Acceptance Rate
9.8%
Denial Rate
38 days
Days in AR
88.9%
Net Collections %

Our Solution

Week 1-2: Authorization Audit

We mapped all payer authorization requirements and identified that 40% of denials were due to incomplete documentation rather than medical necessity issues.

Week 3-4: Documentation Enhancement

Implemented standardized treatment plan templates and session note requirements that align with payer medical necessity criteria for therapy services.

Week 5-8: Coding Optimization

Established precise time tracking for therapy sessions and created billing protocols for group therapy that maximize reimbursement while maintaining compliance.

Week 9-12: Workflow Integration

Integrated authorization tracking with scheduling systems and implemented automated reminders for renewal requirements to prevent treatment interruptions.

Results After 90 Days

93.7%
First-Pass Acceptance Rate
4.1%
Denial Rate
22 days
Days in AR
95.3%
Net Collections %

Key Achievements:

  • $32,000 additional monthly revenue from improved authorization success
  • 95.8% prior authorization approval rate (up from 71.5%)
  • 42% reduction in claim denials
  • 16-day improvement in average payment timing
  • Zero therapy interruptions due to authorization issues

Service-Specific Improvements

Individual Therapy

Session accuracy:98.4%
Auth success rate:96.2%
Average reimbursement:$142/session

Group Therapy

Billing compliance:100%
Revenue per group:$890/session
Documentation quality:99.1%
"Our therapists can finally focus on patient care instead of worrying about authorization hassles. The improved cash flow has allowed us to expand our services and hire two additional clinicians."
— Dr. Lisa Rodriguez, Clinical Director, Mindful Therapy Partners

Struggling with Mental Health Billing Challenges?

Get a specialized behavioral health billing assessment and learn how to streamline your authorization processes and improve therapy session revenue.