BEHAVIORAL HEALTH SERVICES PROVIDER IN INDIANA
- Watchen Roberts
- Jul 21
- 4 min read
PROMOTING EMOTIONAL WELL-BEING, RECOVERY, AND COMMUNITY PARTICIPATION THROUGH COMPREHENSIVE SUPPORT
Behavioral Health Services in Indiana provide assessment, therapy, crisis intervention, and recovery supports for individuals experiencing mental health conditions, emotional disturbances, or substance use disorders. These services are authorized under Indiana Medicaid State Plan benefits, Home and Community-Based Services (HCBS) Waivers, and other state-funded initiatives to promote stability, resilience, and quality of life.
1. GOVERNING AGENCIES
Agency: Indiana Family and Social Services Administration (FSSA) — Division of Mental Health and Addiction (DMHA)
Role: Oversees Behavioral Health Services delivery standards, provider certification, and program quality monitoring
Agency: Indiana Office of Medicaid Policy and Planning (OMPP)
Role: Administers Medicaid funding for Behavioral Health Services and manages provider enrollment, claims, and reimbursement
Agency: Centers for Medicare & Medicaid Services (CMS)
Role: Provides federal oversight, ensuring Medicaid-funded Behavioral Health Services align with HCBS person-centered planning, quality of care, and clinical effectiveness standards
2. BEHAVIORAL HEALTH SERVICE OVERVIEW
Behavioral Health Services address the emotional, psychological, and substance use needs of participants through person-centered, evidence-based interventions.
Approved providers may deliver:
Behavioral health assessments and diagnostic evaluations
Individual, group, and family therapy sessions
Psychiatric services, including medication management
Mobile crisis intervention and stabilization services
Community-based recovery support and skills training
Behavior support planning and positive behavioral interventions
Substance use disorder treatment, including outpatient and recovery services
Trauma-informed care services for individuals with complex needs
All services must align with the participant’s Individualized Treatment Plan (ITP) and comply with Medicaid, HCBS, and DMHA standards.
3. LICENSING & PROVIDER APPROVAL REQUIREMENTS
Prerequisites:
Register business entity with the Indiana Secretary of State
Obtain EIN from the IRS and NPI (Type 2)
Obtain certification as a Community Mental Health Center (CMHC), Behavioral Health Clinic, or Specialized Behavioral Health Provider through DMHA if applicable
Enroll as a Medicaid Behavioral Health Services Provider through the Indiana Medicaid Provider Enrollment Portal
Maintain professional liability, malpractice, and general liability insurance
Develop policies for behavioral health assessment, treatment planning, service delivery, documentation, participant rights, and emergency response
Ensure clinical staff meet licensure, credentialing, and ongoing training standards
4. INDIANA PROVIDER ENROLLMENT PROCESS
Initial Interest and Application:
Submit Provider Enrollment Application through the Indiana Medicaid Provider Portal for Behavioral Health Services
Application and Documentation Submission:
Submit Articles of Incorporation, EIN/NPI confirmation, DMHA certification (if required), insurance certificates, operational policies, and staff licensure records
Program Readiness Review:
DMHA and/or OMPP reviews clinical service models, supervision structures, emergency procedures, participant rights protections, and documentation systems
Approval & Medicaid Enrollment:
Upon approval, providers are assigned billing codes for therapy services, psychiatric services, mobile crisis response, skills training, and behavioral supports
5. REQUIRED DOCUMENTATION
Articles of Incorporation or Business License
IRS EIN confirmation
NPI confirmation
DMHA Behavioral Health Provider Certification (if applicable)
Proof of general liability, malpractice, and professional insurance
Behavioral Health Services Policy & Procedure Manual including:
Participant intake, assessment, and individualized treatment planning procedures
Crisis intervention and emergency response protocols
Therapy session documentation standards and clinical progress monitoring
Participant rights protections, HIPAA compliance, and grievance resolution procedures
Staff credentialing, licensure verification, and ongoing supervision documentation
Medicaid billing and audit-ready clinical documentation practices
6. STAFFING REQUIREMENTS
Role: Clinical Director / Behavioral Health Program Supervisor
Requirements: Licensed Clinical Social Worker (LCSW), Licensed Clinical Professional Counselor (LCPC), Licensed Psychologist (PhD/PsyD), or Licensed Psychiatrist (MD/DO); clinical supervision experience; background clearance
Role: Behavioral Health Clinicians (LCSWs, LMHCs, LMFTs, Psychologists, Psychiatrists)
Requirements: Active Indiana license in discipline; CPR/First Aid certification preferred; background screening clearance
Role: Behavioral Health Support Specialists / Peer Recovery Coaches
Requirements: Certification in peer recovery or behavioral health support preferred; background screening clearance
All staff must complete:
Trauma-informed care, crisis response, and de-escalation training
HIPAA compliance and participant confidentiality training
Abuse prevention, emergency response, and safety training
Annual continuing education and clinical competency reassessments
7. MEDICAID WAIVER PROGRAMS AND STATE PLAN COVERAGE
Behavioral Health Services are reimbursable through:
Indiana Medicaid State Plan Behavioral Health Services
HCBS Waivers:
Community Integration and Habilitation (CIH) Waiver
Family Supports Waiver (FSW)
Aged and Disabled (A&D) Waiver (limited behavior support services)
Traumatic Brain Injury (TBI) Waiver
Approved providers may deliver:
Behavioral health therapy and counseling
Psychiatric evaluation and medication management
Mobile crisis intervention and stabilization
Behavior support planning and skills development
Recovery support and relapse prevention services
8. TIMELINE TO LAUNCH
Phase: Business Formation, Licensing/Certification, and Compliance Setup
Timeline: 2–4 months
Phase: Staff Hiring, Credentialing, and Behavioral Health Program Development
Timeline: 2–4 months
Phase: Indiana Medicaid Enrollment and Readiness Review
Timeline: 60–90 days
Phase: Medicaid Billing Setup and Behavioral Health Service Launch
Timeline: 30–45 days
9. CONTACT INFORMATION
Indiana Family and Social Services Administration (FSSA) — Division of Mental Health and Addiction (DMHA)
Website: https://www.in.gov/fssa/dmha/
Indiana Medicaid Provider Portal
Centers for Medicare & Medicaid Services (CMS)
Website: https://www.cms.gov/

WAIVER CONSULTING GROUP’S START-UP ASSISTANCE SERVICE — INDIANA BEHAVIORAL HEALTH SERVICES PROVIDER
WCG assists behavioral health agencies, therapy practices, and mobile crisis response providers in launching Medicaid-compliant Behavioral Health Services across Indiana.
Scope of Work:
Business registration, DMHA certification (if needed), and Medicaid enrollment guidance
Development of Behavioral Health Services Policy & Procedure Manual
Staff credentialing templates, assessment and treatment plan forms, and session documentation templates
Medicaid billing system setup and audit-ready claims management support
Website, domain, and professional branding development
Clinical documentation compliance systems for emergency response, incident reporting, and outcome tracking
Quality assurance systems for service monitoring, participant satisfaction, and clinical effectiveness
Partnership development with hospitals, crisis centers, schools, and outpatient providers
Our Client Portal offers a wealth of resources that you can explore related to various programs and state requirements.
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