Virginia behavioral health providers have an important opportunity to prepare for the next phase of the Commonwealth’s behavioral health system. However, preparation needs to begin before an application is submitted.
Under the Department of Behavioral Health and Developmental Services (DBHDS) Behavioral Health Redesign, providers seeking certain new behavioral health services must complete required training, prepare supporting documentation, and submit a complete application through CONNECT.
The August 26, 2026 DBHDS memorandum specifically identifies Community Psychiatric Support and Treatment (CPST) for youth and adults, Coordinated Specialty Care (CSC), and Mental Health Center-Based Recovery and Empowerment Center (REC) services among the new services covered by the licensing process.
At the same time, DMAS has confirmed that the redesigned Medicaid behavioral health services will begin July 1, 2027, after the implementation date was extended from 2026.
Step 1: Determine Which Service Your Organization Needs
Before preparing an application, providers should determine which redesigned service aligns with their organization, population served, staffing capabilities, and intended service model.
This is important because the application process is not simply a matter of changing the name of an existing service. Each service has specific requirements that providers must understand and demonstrate through their application and supporting documentation.
Providers transitioning from legacy services should also determine how the redesign affects their current operations.
DMAS confirms that the four legacy Medicaid services scheduled for retirement are Intensive In-Home Services, Therapeutic Day Treatment, Mental Health Skill Building, and Psychosocial Rehabilitation. These services are scheduled to end June 30, 2027.
Step 2: Complete the Required Training
Training is one of the most important requirements in the new application process.
DBHDS requires providers to complete the Behavioral Health Redesign Pre-Application Training before submitting an application for the applicable new services. The training explains the application process, CONNECT submission requirements, required documents, staffing plans, and policy requirements.
For current providers, submitting a service modification before completing the required training can result in administrative withdrawal of the application.
Prospective providers have additional requirements. They must complete the Initial Applicant Orientation Training and pass the proctored exam before attending the behavioral health application training and submitting their application.
Therefore, organizations should identify the appropriate training participant early.
Step 3: Build Your Application Documentation
A complete application requires more than filling out an online form.
DBHDS specifically states that its pre-application training will address required documents, staffing plan requirements, and policy requirements.
Current providers seeking to add a redesigned service must also submit policy and procedure documents through a Provider Portal Message. DBHDS notes that specific policy requirements and regulatory citations will be addressed during the mandatory training.
Providers should therefore use the training as a preparation tool—not simply as a box to check.
Review your existing policies, identify gaps, evaluate your staffing structure, and organize supporting documentation before submitting your application.
Step 4: Prepare for CONNECT
DBHDS will begin accepting applications for the new behavioral health services through CONNECT on September 10, 2026. Proof of training completion must accompany the application, and prospective providers must also provide proof of passing the required exam.
Because DBHDS has identified incomplete and problematic applications as a major source of delays, providers should avoid treating the application deadline as the target submission date.
Instead, organizations should aim to submit as early as their preparation allows.
Step 5: Do Not Wait Until January 15, 2027
The formal deadline for a complete application is January 15, 2027.
However, DBHDS strongly encourages early submission because applications may require corrections and resubmission. The agency states that applications requiring resubmission may not receive licensure in time for July 1, 2027.
This makes application quality just as important as application timing.
A provider that submits early but has significant deficiencies may still face delays. Consequently, organizations should prioritize accuracy, completeness, and regulatory alignment before submission.
Step 6: Plan Beyond DBHDS Licensure
Providers should also remember that DBHDS licensure is only one part of the transition.
DMAS states that providers may need to meet separate enrollment, credentialing, and contracting deadlines with DMAS, managed care organizations, and other funding sources. DBHDS licensure does not automatically guarantee Medicaid enrollment or payer contracting.
Therefore, providers should build payer requirements into their transition timeline instead of waiting until after licensure.
What Providers Should Do Now
The strongest preparation strategy is to work backward from the July 1, 2027 implementation date.
Start by identifying the services you intend to provide. Then, determine your training requirements and identify the owner or Main Authorized Contact (MAC) who needs to participate. Next, review your policies, staffing structure, service documentation, and application materials against the requirements presented during DBHDS training.
Finally, establish an internal deadline that is earlier than January 15, 2027. This gives your organization time to identify deficiencies, make corrections, and resubmit if necessary.
Next Steps for Providers
Providers should begin preparing now rather than waiting for the application deadline. Complete the required training, organize your policies and supporting documents, develop a compliant staffing plan, prepare your CONNECT application, and confirm applicable DMAS and MCO enrollment or contracting requirements. The goal should not simply be to submit an application—it should be to submit a complete, accurate, and review-ready application that supports timely licensure before July 1, 2027.
Frequently Asked Questions
1. What are the new behavioral health services being introduced?
The DBHDS August 2026 memo covers applications for CPST for youth and adults, Coordinated Specialty Care, and Mental Health Center-Based Recovery and Empowerment Center services.
DMAS’s current redesign information also identifies CPST, CSC, and Mental Health Clubhouse Services within the redesigned Medicaid service array.
2. Can I submit an application before completing the required training?
No. The required training must be completed before the applicable application is submitted. For prospective providers, the Initial Applicant Orientation and proctored exam are also required.
3. When will DBHDS accept applications?
DBHDS will begin accepting applications for the new services through CONNECT on September 10, 2026.
4. What happens if I submit an incomplete application?
Deficiencies may require correction and resubmission. DBHDS warns that applications requiring resubmission may not be licensed by July 1, 2027.
5. When will the redesigned services begin?
DMAS currently identifies July 1, 2027 as the implementation date for the redesigned Medicaid behavioral health services. The four legacy CMHRS services are scheduled to retire June 30, 2027.
Final Takeaway
The transition to the new behavioral health services in Virginia requires more than submitting an application. Providers need a coordinated strategy covering training, policies, staffing, documentation, licensing, Medicaid enrollment, and payer contracting.
Organizations that begin preparing early will have more time to identify gaps and address deficiencies before the transition deadline. With July 1, 2027 approaching, now is the time to move from awareness to implementation.
