Behavioral Health Services in Louisiana help individuals with mental illness, emotional challenges, and substance use disorders receive comprehensive treatment in their communities. These services are delivered through Louisiana Medicaid Managed Care and approved providers under the direction of the Louisiana Department of Health (LDH) and its Office of Behavioral Health (OBH).

1. GOVERNING AGENCIES

Agency: Louisiana Department of Health (LDH) — Office of Behavioral Health (OBH)
Role: Oversees behavioral health licensing, service scope, and quality assurance for Medicaid-funded mental health and substance use disorder services

Agency: Centers for Medicare & Medicaid Services (CMS)
Role: Provides federal oversight and ensures services align with HCBS and EPSDT Medicaid requirements

Agency: Managed Care Organizations (MCOs) under Bayou Health
Role: Authorize services under approved care plans, manage provider credentialing, and process billing and payments

​

2. BEHAVIORAL HEALTH SERVICE OVERVIEW

Behavioral Health Services offer clinical, rehabilitative, and support interventions to address psychiatric disorders, emotional disturbances, and substance use.

Approved providers may deliver:

• Diagnostic evaluations and mental health assessments
• Individual, family, and group therapy
• Psychiatric medication management and counseling
• Crisis response and stabilization services
• Functional behavioral assessments and interventions
• Community Psychiatric Support and Treatment (CPST)
• Psychosocial Rehabilitation (PSR) services
• Peer support and substance use recovery coaching

3. LICENSING & PROVIDER APPROVAL REQUIREMENTS

Prerequisites:

• Register your business with the Louisiana Secretary of State
• Obtain an EIN from the IRS and a Type 2 NPI
• Secure a Behavioral Health Services License through the LDH Health Standards Section
• Enroll with Louisiana Medicaid via the Medicaid Provider Enrollment Portal
• Credential with Bayou Health MCOs (e.g., Aetna, AmeriHealth Caritas, Healthy Blue, LA Healthcare Connections, UHC)
• Employ licensed mental health professionals and behavioral health staff
• Maintain general liability and malpractice insurance
• Ensure HIPAA compliance and clinical documentation procedures

4. PROVIDER ENROLLMENT PROCESS

Option A: Individual Practitioner (e.g., LCSW, LPC, LMFT)

• Apply through the Louisiana Medicaid Provider Enrollment Portal
• Submit proof of licensure, NPI, and insurance
• Contract with MCOs to begin receiving referrals and reimbursement

Option B: Behavioral Health Agency

• Apply for licensure with LDH Health Standards Section
• Enroll with Medicaid and complete credentialing with each MCO
• Submit agency documents, staffing plan, and service scope
• Develop internal clinical protocols and staff supervision policies

5. REQUIRED DOCUMENTATION

• Articles of Incorporation or Sole Proprietorship filing
• IRS EIN confirmation
• NPI registration
• LDH Behavioral Health license (for agencies)
• Medicaid enrollment confirmation
• Staff licensure and credentialing logs

Policy & Procedure Manual including:

• Client intake and mental health assessment forms
• Treatment planning and clinical progress note templates
• Crisis intervention and suicide risk protocols
• Medication administration logs (if applicable)
• Staff supervision, documentation, and continuing education logs
• Participant rights, HIPAA consent, and grievance procedures
• Incident reporting and emergency contact procedures
•  

6. STAFFING REQUIREMENTS

Role: Licensed Mental Health Professional (e.g., LCSW, LPC, Psychologist)
Requirements: Active Louisiana license, Medicaid-eligible, experience with clinical documentation

Role: Psychiatrist or Nurse Practitioner (optional for medication management)
Requirements: Active license and DEA registration, may prescribe and manage medications

Role: Peer Support Specialist / Behavioral Health Technician
Requirements: Certified or trained in behavioral health, supervised by licensed staff

Training Requirements for All Staff:

• HIPAA and client confidentiality
• Behavioral crisis response and de-escalation
• Suicide prevention and mandated reporting
• Trauma-informed care and cultural competency
• Annual CEUs and compliance training

7. MEDICAID WAIVER & STATE PLAN SERVICES

Behavioral Health Services are reimbursed under:

• Louisiana Medicaid State Plan (for all ages and diagnoses)
• EPSDT (Early and Periodic Screening, Diagnostic, and Treatment)
• HCBS Waivers (ROW, NOW, Supports Waiver, Children’s Choice Waiver) — for behavioral supports within the care plan
• Money Follows the Person (MFP) — transitional behavioral care
• Crisis services supported through regional or community-based funds

Approved providers may deliver:

• In-clinic or in-home behavioral health therapy
• Rehabilitation and skills training programs
• Telehealth-based counseling (if approved)
• Services coordinated with support coordinators and MCO care teams

8. TIMELINE TO LAUNCH

Phase: Business Formation and Licensing
Timeline: 1–2 months

Phase: Medicaid and MCO Credentialing
Timeline: 60–90 days

Phase: Staff Hiring and Documentation Setup
Timeline: 2–4 weeks

Phase: Service Authorization and Delivery
Timeline: Ongoing, based on participant need and referrals

9. CONTACT INFORMATION

Louisiana Department of Health — Office of Behavioral Health (OBH)
Website: https://ldh.la.gov/page/86

LDH Health Standards Section (Licensing)
Website: https://ldh.la.gov/page/282

Louisiana Medicaid Provider Enrollment Portal
Website: https://www.lamedicaid.com

Louisiana State Boards:

Social Workers: https://www.labswe.org

Counselors: https://www.lpcboard.org

​

10. SCOPE OF WORK

• Business registration and LDH licensure guidance
• Louisiana Medicaid enrollment and MCO credentialing
• Behavioral Health Policy & Procedure Manual development
• Clinical documentation templates for assessments, notes, and billing
• Supervision and staff compliance tracking tools
• Website and branding setup for service outreach
• Referral coordination with hospitals, schools, and waiver case managers