Vertical software45% entry signalMarket screenOne thing must be trueincumbent vulnerability

Behavioural Health Practice Software

Prepared 2026-09-09

The buyer population — Offices of mental health practitioners (except physicians)

Base industry report for 621330 →
Establishments · CanadaA
2,173
with employees
Under 10 employeesA
92%
most common size: 1–4
Establishments · USA
40,885
Employment · USA
218,860
5.4 per establishment
Payroll · USA
$9.5B
$43k per employee

Of 2,173 Canadian establishments with employees, 92% have fewer than ten — an industry of very small operators. Each of those is one potential account, before any filter for size or fit.

Entry signal — what decides who wins here

One thing must be true
Structure decides One thing must be true Execution decides

Entry turns on a single condition that can be named and tested before much is spent. Clear it and this becomes an execution question; fail it and no amount of operating skill helps.

What you would have to beat

Displace an incumbent the screen found well defended — payments attached to the workflow, data that does not leave, a contract that renews itself. Share here means giving a buyer a reason to break something that currently works, which is a higher bar than being better.

How it was read
Binding constraintUNVERIFIEDincumbent vulnerability — Executional — a better operator can move it.
Measured inputsUNVERIFIEDnot applied — This is a software market. The industry’s business counts describe its BUYERS, not the market being entered, so they are left out of the signal.
How many new establishments are still tradingA
Health Care and Social Assistance, US · opened 2020
84%
1 year
65.3%
3 years
52.6%
5 years
36.4%
10 years
opened 2015

Measured, not forecast: the share of US establishments opening in one year that were still active later. It counts good operators and bad ones together, which is exactly why it is the honest answer to “what are the odds”. It is for the whole sector rather than this market, and the ten-year figure comes from an older cohort because no younger one has reached ten years.

This is not a probability of success, and it is not a verdict on you. No survival probability is published per market, and inventing one would be worse than saying so. What the bar reads is how much of the outcome sits inside an operator's control: green means the hurdles are ones a better operator clears, red means the binding constraint is capital, an asset or a permission rather than execution. Someone arriving with an advantage this screen did not assume can win a market shown in red.

Companies named in this market · 11

The binding constraint — incumbent vulnerability

SimplePractice has the solo and small-group therapist market at scale and sits behind EQT's balance sheet, but the harder problem is the payer-network model: Headway and Alma give practice software away because they earn on the claim. Competing with free-plus-revenue against a buyer who is also being offered patient flow is not a wedge. Nothing is disclosed here. Every vendor named on this record is private, or sits inside a parent that does not break the line out, so no revenue floor can be built and the market size is genuinely unknown rather than estimated.

I

The incumbent

Who owns this market and who is coming for it. Fields a screen never reached say so rather than guessing.

Incumbent
SimplePractice (EQT)
Scale
The default practice-management and telehealth system for solo and small-group behavioural health practices
Challengers
TherapyNotes, Jane App (Canadian — Victoria BC), Valant, Alleva, and the network models Headway and Alma
Lock-in mechanism
Not assessed — screened before diligence
Price movement
Not assessed
Is the buyer consolidating?
No
V

The field

Every vendor named on this record, and what each one discloses. Most disclose nothing, which is why the market is not sized.

Competitor set · 4 named · 0 disclose revenue

NameRevenueShareNote
SimplePracticeC not disclosed — Private (EQT)
TherapyNotes / Valant / AllevaC not disclosed — Private
Jane App (Canadian — Victoria BC)C not disclosed — Private
Headway / AlmaC not disclosed — Private payer networks that bundle the software free

Nobody here publishes revenue. The market is not sized for that reason — an estimate built on nothing would only look like knowledge.

S

Startups & challengers

Newer and smaller vendors going at the incumbent — funded challengers first. Named, not researched to the depth of the field above; a company with a page here links to it.

CompanyStageWhat it doesRaised
Osmind Funded challenger EHR and research platform for psychiatry and mental health practices —
Therapy Brands Funded challenger EHR and practice software for behavioral, physical and speech therapists. —
Heard Startup Bookkeeping, tax and payroll for private-practice therapists. —
Passage Health Startup Clinical data collection and practice management for ABA therapy providers —

Evidence

Evidence. UNVERIFIED — screened on analyst judgment. Incumbent names and positions are from general market knowledge and were NOT independently researched for this record; no financials are attached because none were sourced. Verify before acting.

#

Where the industry talks

The associations, forums and events where people in this trade actually talk shop — where to listen before entering, and where the first customers are found. Each link was opened on the date shown.

AssociationCanadaA
Canadian Counselling and Psychotherapy Association (CCPA)
ccpa-accp.ca

National bilingual body for counsellors and psychotherapists, including private practice; certification and insurance programs. No member count on site.

Checked 2026-09-22
AssociationCanadaA
Canadian Psychological Association (CPA)
cpa.ca · 7,000 members (2026-09)

'over 7,000 members and affiliates' per its About page; Canada's largest psychology association.

Checked 2026-09-22
AssociationUSA
American Counseling Association (ACA)
counseling.org · 60,000 members (2026-09)

'More than 60,000 members' per its Who We Are page (another line says 62,000); largest US counsellor body.

Checked 2026-09-22
AssociationUSA
National Council for Mental Wellbeing
thenationalcouncil.org · 3,200 members (2026-09)

'more than 3,200 mental health and substance use treatment organizations' per its About page; count is of member organizations.

Checked 2026-09-22
PodcastUSA
Practice of the Practice
practiceofthepractice.com

Long-running podcast and site on starting, growing and scaling a private therapy practice; also runs a Group Practice Conference.

Checked 2026-09-22
PublicationUSA
Psychotherapy Networker
psychotherapynetworker.org

Magazine for practising therapists with CE training; its Symposium site (psychnetworker.org) blocked automated access.

Checked 2026-09-22
PublicationUSA
Behavioral Health Business
bhbusiness.com

Trade news for behavioural-health executives and practice owners.

Checked 2026-09-22
EventUSA
BHB VALUE Conference
bhbvalueconference.com

Behavioral Health Business's conference on value-based care for behavioural-health executives; 2026 sponsors listed.

Checked 2026-09-22

r/therapists, the busiest online venue for private-practice therapists, could not be verified from this network and is not listed.

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The businesses it sells to

Operating-business records filed along the same branch of NAICS — the customers of this software, screened as businesses in their own right.

No operating-business record has been written along this branch yet. The base industry report says what the subsector typically runs on.

Other software on this branch

Vertical softwareScreenedfiled at 621
Healthcare Revenue Cycle & Admin SoftwareOne thing must be true
binding constraint: incumbent vulnerability
Incumbent Optum (Change Healthcare)

What this category is. The back office between a care provider and whoever pays: eligibility checks, claims and the clearinghouse that carries them, coding, denials and appeals, payer-to-provider payments, patient statements and collections, and the credentialing and enrolment that let a clinician bill a plan at all. The coded customer is ambulatory care (621): physician groups, clinics, labs and home health. But the largest buyers of several segments are hospitals and health systems (outsourced revenue cycle, inpatient coding) and health plans (payer payments, provider data, credentialing). How it differs from the neighbouring records. Electronic health records and practice management (6211) sells the chart and scheduling; athenahealth appears here only for its revenue-cycle business, and its funding is not re-researched. EHR+ patient engagement (6211) sells the portal and intake. Patient booking (6211) sells patient acquisition. HIPAA compliance (6211) sells security and audit. Medical imaging (621510) sells PACS. This record is the money and paperwork layer. Who owns the rails. Optum completed its combination with Change Healthcare on 3 October 2022 [A, Optum]. The February 2024 ransomware attack on Change touched about 192.7 million individuals, the largest US healthcare breach on record [B, CyberInsider citing the HHS OCR filing], and stopped claims for providers across the country. That shows how much of the network runs through one company. Availity says it connects over two million providers to every US health plan and handles over 13 billion transactions a year; its shareholders include Anthem (Elevance), Humana, HCSC and GuideWell, and Novo Holdings bought Francisco Partners' stake in July 2021 [A, Novo Holdings]. Waystar (Nasdaq: WAY) earned $1,099M of revenue in 2025, up 17%, from about 30,000 clients representing over 1 million providers [A, Waystar release]. Experian Health sells patient access, eligibility and identity inside Experian plc. Zelis runs the payer-to-provider payment side: 725 payer clients, 850K+ providers and $300B+ of payment volume by its own count [C]. Bain Capital and Parthenon sold a minority stake to a Mubadala-led group that closed on 26 November 2024 [A, Kirkland & Ellis]; the reported $17B valuation is Bloomberg's, not opened here. Who owns the outsourced work. R1 RCM was taken private by TowerBrook and CD&R at about $8.9B, closing 19 November 2024 [A, CD&R]. Ensemble Health Partners began as Bon Secours Mercy Health's revenue-cycle arm; Golden Gate Capital bought 51% in 2019 in a deal reported at about $1.2B [B, Becker's]. athenahealth, bought by Bain Capital and Hellman & Friedman for $17B [B, Healthcare Dive], bundles billing with its ambulatory record. The AI wave is already funded. AKASA (inpatient coding for 500 hospitals, by its own count) raised a $60M Series B led by BOND in 2021 [A]. Adonis raised a $40M Series C led by Quadrille Capital in March 2026, over $95M in total, and claims more than 4x revenue growth in 2025 [A, company release]. Candid Health raised a $52.5M Series C led by Oak HC/FT, $99.5M in total [B, HLTH]. Infinitus raised a $51.5M Series C led by Andreessen Horowitz, $102.9M in total, for AI agents that call payers [B, Pulse 2.0]. In credentialing, Medallion has raised $130M (latest $43M led by Acrew Capital, August 2025) and has acquired Andros [A]. CertifyOS raised a $40M Series B led by Transformation Capital in June 2025 [A]. Uno Health (Medicaid and benefits enrolment) was bought by Findhelp in October 2025 [B]. Canada. Provincial plans pay physicians, so the US claims-and-denials problem mostly does not exist. Billing is bundled with the record: more than 40,000 Canadian health professionals use a TELUS Health EMR [A, TELUS], and TELUS's CHR files OHIP claims through MDBilling [A, TELUS help centre]. mdbilling.ca now redirects to Dr.Bill, which claims 13,000+ physicians across OHIP, MSP and AHCIP [C]. TELUS eClaims covers direct billing to private insurers for allied health. Why a newcomer cannot get in. The clearinghouse and payment rails are owned by Optum, Availity (owned by payers), Waystar and Zelis. Each depends on connections to thousands of payers and on volume pricing. The outsourced hospital work is owned by private-equity platforms worth billions. Every point task an AI startup might attack (coding, denials, payer calls, credentialing, patient billing) already has a venture-backed player with $50M–$130M raised, and the incumbents are buying or building the same AI. Waystar's acquisition of Iodine is one example. In Canada the pain is small and the record vendors bundle it. Incumbent vulnerability decides it.

NAICS 62115 vendors named6 sourced figuresOpen →