The behavioral health industry is at a pivotal moment as demand for mental health and substance use services continues to rise across the United States. According to new data from Behavioral Health Business (BHB), key opportunities for growth in 2022 center around behavioral health service expansion and embracing value-based care models. These strategic shifts reflect the sector’s response to evolving patient needs, payer expectations, and advances in technology.
The 2022 BHB Industry Outlook report, based on a survey of 84 provider executives, paints a clear picture of where the behavioral health field is headed. More than a third of respondents identified behavioral health service expansion as the greatest opportunity for providers this year. This signals a growing recognition that behavioral health care must adapt to provide more comprehensive, integrated, and specialized services. Behavioral health service expansion can include anything from new clinical programs addressing emerging behavioral health conditions to incorporating complementary services such as case management, peer support, or wellness programs.
The Growing Importance of Value-Based Care in Behavioral Health
Just behind behavioral health service expansion, value-based care was ranked as the second largest growth opportunity by behavioral health providers. This is a significant development, as the industry has historically relied heavily on fee-for-service payment models that reimburse providers based on volume rather than quality or outcomes.
Katherine Hobbs Knutson, SVP of UnitedHealth Group and CEO of Optum Behavioral Care, highlighted a key challenge with fee-for-service models during an April webinar. She explained that these models often fail to scale payment appropriately based on patient complexity. “Payers are often paying the same amount for treatment of ADHD as a medication visit for schizophrenia, and the work involved in those two is quite different,” Knutson said. This mismatch can discourage providers from investing in more comprehensive care for complex patients and may hinder innovation.
In response, a growing number of behavioral health organizations are shifting toward value-based care, which ties reimbursement to patient outcomes, quality metrics, and cost-efficiency. This approach incentivizes providers to improve the standard of care, focus on long-term recovery, and optimize resource use. For example, Alabama-based WellStone Health and managed service organizations like New Directions Behavioral Health have started implementing data platforms to track outcomes systematically. These platforms allow providers to analyze the effectiveness of treatments, identify gaps, and adjust care plans in real time.
Historically, behavioral health has lagged behind other medical specialties in adopting electronic health records (EHR) and other health information technologies. The industry’s slow integration of EHRs made it difficult to collect and analyze patient data, a necessary step for successful value-based care programs. The current ramp-up in technology adoption represents a meaningful shift toward data-driven care.
Brad Sorte, CEO of Caron Treatment Centers, emphasized the benefits of value-based care in an interview with BHB. He said, “[Value-based care] puts the onus on the provider to raise their standard of care. But the long-term effect of raising the standard of care will eventually be better outcomes for the patient, lower costs for the payer, and hopefully, better reimbursement.” This perspective captures the triple aim of value-based care: improving patient experience, reducing costs, and enhancing health outcomes.
Telehealth Remains a Cornerstone of Behavioral Health Delivery
Technology adoption is not limited to EHRs and data analytics; telehealth continues to be a crucial component of behavioral health services. The BHB report found that 55% of surveyed behavioral health providers expect telehealth utilization to increase in 2022, with another 40% anticipating it will remain stable at current levels.
The rapid expansion of telehealth during the COVID-19 pandemic transformed the way behavioral health care is delivered. Telehealth visits for Medicare beneficiaries skyrocketed by over 3,000%, demonstrating how virtual care removed many barriers such as transportation, stigma, and provider shortages. Recognizing this success, the Centers for Medicare and Medicaid Services (CMS) have actively supported broader telebehavioral health access, including easing restrictions on types of services covered and locations from which patients can receive care.
This regulatory support, combined with patient and provider acceptance, suggests that telehealth will remain a permanent fixture in behavioral health. Providers see telehealth not just as a pandemic necessity, but as a tool to improve access, especially in rural or underserved areas. It also offers more flexible and convenient options for ongoing therapy, medication management, and crisis intervention.
Challenges and Opportunities Ahead
While the prospects for growth and innovation are strong, the behavioral health industry faces challenges as it adapts to new models. Transitioning to value-based care requires significant investment in technology, workforce training, and care coordination infrastructure. Providers must develop reliable metrics to measure outcomes meaningfully, which is not always straightforward given the complexity of behavioral health conditions.
Additionally, behavioral health service expansion means balancing demand with quality. Providers must ensure that new programs are evidence-based, culturally competent, and accessible to diverse populations. Securing sustainable reimbursement for these services remains an ongoing concern.
Despite these hurdles, the convergence of behavioral health service expansion, value-based care, and telehealth adoption sets the stage for transformative change. Providers who successfully embrace these trends are likely to deliver better patient outcomes while also improving financial sustainability.
Conclusion
Behavioral health providers are clearly positioning themselves for a future that demands greater flexibility, accountability, and patient-centered care. By focusing on behavioral health service expansion and transitioning toward value-based payment models supported by robust data platforms, they can better address the complex needs of those they serve. Telehealth will continue to enhance access and convenience, cementing its role as a vital part of the behavioral health ecosystem.
As these opportunities unfold, providers who innovate while maintaining a focus on quality will be best equipped to thrive in a rapidly evolving healthcare environment — ultimately delivering better care, reducing costs, and improving lives.
