As healthcare leaders look ahead to 2026, one thing is clear: behavioral health is no longer operating on the margins of healthcare, it’s now at the center of every major conversation about access, workforce stability, care delivery models and the future of virtual care.
Few people have a better vantage point on these shifts than Andy Flanagan, CEO and former SVP of U.S. Healthcare at SAP and a subject matter expert at Iris Telehealth, a leading tele-behavioral health platform. From large-scale policy changes to evolving patient expectations and the next wave of clinical innovation, Flanagan says the industry is entering a pivotal period that will reshape how mental health care is delivered for years to come.
“We’re in a period of transformation regarding how behavioral health is delivered,” he says. “Virtual care has matured and is now part of everyday care rather than an exception. This is especially true in rural communities, where access to psychiatric help has been restrictive. The focus ahead is on redesigning systems to support both clinicians and patients, looking at every process through the lens of efficiency and access.”
That shift, from thinking about technology as an add-on to viewing it as a necessary part of a redesigned system, is at the heart of what he expects to define the year ahead.
A New Landscape: Policy, Parity and the Future of Access
With federal and state agencies continuing to revisit telehealth reimbursement and mental health parity laws, Flanagan says 2026 will be a consequential year for access and equity.
“Parity laws are designed to ensure that telehealth visits are reimbursed at the same rate as in-person visits, protecting both patients and clinicians,” he explains. “However, with enforcement in question, some payers are starting to pay less for virtual care, which will hurt access.”
The more fundamental issue, he says, is outdated thinking.
“Many payers and government entities still view telehealth and healthcare delivery as separate concepts, rather than recognizing that telecommunication is simply the modality through which care is delivered.”
When parity falls short, patients pay the price, especially those who have come to rely on virtual behavioral health care for convenience, privacy, transportation barriers and continuity of appointments.
To counteract these pressures, providers will need to demonstrate what many patients already know: virtual health care works. Flanagan urges organizations to use outcomes data showing that “virtual health care delivers the same outcomes, and often better continuity of care for patients who might otherwise miss appointments, as traditional in-person services.”
The Integration Challenge: Building a Continuous Care Journey
Despite the rapid rise of virtual behavioral health, health systems face major challenges in maintaining care continuity as hybrid models become the norm.
“The biggest challenge is connecting all the components of care so patients experience a single, continuous journey,” Flanagan says. “Licensing, payer agreements, staffing and data systems were never built for a blended in-person and virtual model, so they still create friction.”
He notes a critical misstep many organizations make: confusing virtual access with virtual integration.
Some virtual behavioral health companies, particularly those transitioning from direct-to-consumer models, operate more like outside referral networks. Providers may point patients to schedule separately and then send periodic updates back to the health system. This fragmentation creates gaps in care and increases network leakage.
“True integration means virtual providers document and bill directly through the health system’s EHR, ensuring continuity of information and eliminating care gaps,” Flanagan says.
For systems preparing for 2026, he believes the priority is clear: connect data, workflows, documentation and patient touchpoints across every setting of care.
“When those pieces connect, clinicians can stay focused on patients instead of administrative barriers, and patients get the consistent support they deserve across every touchpoint.”
Tele-Behavioral Health: From Emergency Response to Core Infrastructure
Tele-behavioral health proved essential during the pandemic, but its staying power has surprised even some industry veterans.
“Behavioral health was one of the only areas that stayed virtual at high levels because patients and clinicians saw its value,” Flanagan notes. “It has allowed people to stay connected even when life gets in the way, and for hospitals, it has reduced emergency department holds and improved patient stability.”
The next phase, he says, will be deeper integration into primary care and specialty care, where mental health becomes inseparable from overall health.
“The next phase is weaving tele-behavioral care directly into primary care and specialty settings so that mental health is treated as a natural, integrated part of care delivery.”
What Patients Expect in 2026: Flexibility, Immediacy and Human Connection
Today’s behavioral health patients have different expectations than they did even three years ago. The pandemic accelerated a shift already underway, pushing healthcare to catch up with the immediacy and convenience found in other industries.
“Patients today want care that meets them where they are: flexible, immediate and part of their daily lives,” Flanagan says. They aren’t willing to wait weeks for an appointment or travel hours for specialty care. Instead, “they expect more real-time interaction through telehealth, messaging and digital tools that make mental health support feel accessible and continuous.”
At the same time, patients want to be seen not only for their struggles but also for their progress.
“They want their providers to recognize their progress, not just their struggles, and to treat ‘good mental health’ as something to celebrate and sustain.”
When it comes to AI, patients strike a careful balance. They welcome AI for efficiency and alerting but want humans making final decisions. In an Iris Telehealth survey:
- 73% of respondents want human providers to make the final call in AI-flagged emergencies.
- 47% believe AI is helpful only when it supplements human expertise.
“The future of behavioral health will strike a balance between AI-enhanced communication and prevention, and human providers ensuring that care remains compassionate, trustworthy and deeply personal,” Flanagan says.
The Next Wave: Innovations Redefining Care Delivery
In 2026 and beyond, Flanagan sees innovation centering on one theme: reducing friction.
Integrated video visits within EHRs, smart scheduling and seamless documentation tools will continue to replace disjointed platforms and manual workarounds.
“AI will continue to play a role, but it should focus on removing waste, not replacing people,” he says.
Iris Telehealth’s nationwide surveys show patients are increasingly open to AI, particularly when it is used for administrative tasks and care coordination. As comfort grows, he expects AI to streamline operations, reduce clinician burden and redirect time back into patient care.
“The goal is to invest in efficiency and redirect the savings from automation and AI into frontline behavioral health services, where they make the biggest difference.”
Addressing Burnout: A System-Level Imperative
Nearly every healthcare system today is grappling with clinician burnout, and behavioral health is deeply intertwined with that challenge.
Flanagan points to AMA findings that 45.2% of physicians experienced burnout symptoms in 2023—still high, even with improvement from pandemic levels. Staffing shortages remain a major driver.
As Christine Sinsky, MD, notes in the AMA survey: “While burnout manifests in individuals, it originates in systems.”
Flanagan says behavioral health plays a key role in reducing that pressure.
“More than 70% of primary care visits have some behavioral health component,” he says. Without adequate behavioral health resources, primary care providers shoulder an unsustainable load.
Iris Telehealth’s model is designed to address both clinician well-being and organizational stability. They support psychiatrists and therapists with flexible schedules, integrated EHR documentation and support teams that manage administrative tasks. For health systems, they help build comprehensive behavioral health programs, including psychiatry, therapy and care navigation, that reduce pressure on PCPs and improve outcomes across the community.
A Final Prediction for 2026
If Flanagan could leave healthcare leaders with one message, it’s this:
“2026 will reward the organizations that invest in operational resilience, not quick fixes.”
Workforce shortages, regulatory uncertainty and reimbursement shifts will continue. The systems that thrive will redesign workflows, expand flexible access points and build long-term partnerships that create stability for patients and providers.
“This is not about waiting for clarity from Washington or chasing the next funding cycle,” he says. “It’s about building infrastructure that can weather volatility while maintaining the quality of care communities depend on.”
In other words, the winners in 2026 will be the organizations that stop reacting and start designing for the future—one where behavioral health is foundational, integrated and built to last.
For more information, visit iristelehealth.com.
Daniel Casciato is a seasoned healthcare writer, publisher, and product reviewer with two decades of experience. He founded Healthcare Business Today to deliver timely insights on healthcare trends, technology, and innovation. His bylines have appeared in outlets such as Cleveland Clinic’s Health Essentials, MedEsthetics Magazine, EMS World, Pittsburgh Business Times, Post-Gazette, Providence Journal, Western PA Healthcare News, and he has written for clients like the American Heart Association, Google Earth, and Southwest Airlines. Through Healthcare Business Today, Daniel continues to inform and inspire professionals across the healthcare landscape.
