Behavioral Health Business January 21, 2026
Ashleigh Hollowell

This is an exclusive BHB+ story.

New York, Michigan and South Carolina were among the first states to pilot a federal initiative aimed at transitioning mental health providers from fee-for-service models toward value-based payment structures. There’s also new money on the table — up to $7.5 million each through the Center for Medicare and Medicaid Innovation (CMMI) — for five new states to join the next cohort, soon bringing the total participants in this effort to eight.

Year one was all about moving mental health care out of historical, systemic silos into integrated care hubs. Now, pilot states will enter phase two of the process to build mature data practices and further strengthen infrastructure.

New states won’t be...

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Topics: CMS, Govt Agencies, Mental Health, Payment Models, Provider, Value Based
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