Texas has one of the lowest ratios of psychiatrists per capita of any major state, making credentialed psychiatrists extraordinarily valuable and in high demand across both urban and rural markets. The Texas Health and Human Services Commission funds Medicaid behavioral health services through both TMHP and through the Star Health program for foster children, which requires a separate enrollment pathway. NorthSTAR, formerly available in the Dallas area, has been replaced by expanded Medicaid managed care behavioral health carve-in services, meaning psychiatrists must now credential with MCOs rather than the legacy regional behavioral health authority. BCBS TX processes psychiatry credentialing through its behavioral health arm, which may delegate to Magellan or Beacon depending on the employer group. Texas has a significant shortage of inpatient psychiatric beds, creating strong demand for psychiatrists willing to credential at standalone psychiatric hospitals like Behavioral Health of the Palm Beaches or UT Health facilities. Texas's telemedicine framework is relatively provider-friendly, and telehealth psychiatry panels with major Texas payers are actively accepting new providers.
Texas Medical Board
Psychiatry Requirements in Texas
Estimated Timeline
Top Payers for Psychiatry in Texas
Frequently Asked Questions
How has the NorthSTAR program change affected psychiatry credentialing in Dallas?
NorthSTAR transitioned to Medicaid managed care behavioral health services. Psychiatrists who were enrolled with NorthSTAR's regional behavioral health authority must now credential with the Medicaid MCOs (Molina, UHC, Amerigroup) to continue serving this population.
Does Texas allow psychiatrists to prescribe via telehealth without in-person evaluation?
Texas allows telehealth prescribing for most psychiatric medications, but an initial in-person evaluation is required for controlled substances under Texas medical board rules unless the patient is in a medically underserved area and accessing care at an approved healthcare site.
What are the TMHP documentation requirements for psychiatric evaluation billing?
TMHP requires psychiatric evaluations to be documented with DSM-5 diagnosis coding, functional assessment scores, and treatment plan documentation. Evaluation and management codes must be supported by medical necessity documentation per TMHP's psychiatric service billing guide.
Reviewed by Arctic Health Team , Credentialing Specialists
Last reviewed: September 2026
Information on this page reflects our experience as of September 2026. Credentialing requirements, payer processes, and state regulations may change. Contact us or check the relevant state medical board and payer websites for the most current requirements. This content is for informational purposes only and does not constitute legal or professional advice.