Sep 30, 2025
From the Founder: Why Allia Is Free (and Always Will Be)
Saroosh
We want to enable mental health providers to run their own practices. Here's more context on why Allia is free.
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This is Saroosh, one of the founders of Allia. Over the past few weeks, I’ve noticed some recurring questions about how we operate, why Allia is free, and what our long-term plans are. I wanted to jump in and clear a few things up.
We recently came across a Reddit thread about Allia, and honestly, we love it. Not because it was full of glowing praise, but because it shows that people are comfortable enough to try the product and talk about it openly - that kind of conversation is exactly what we want.
We also understand the skepticism. In fact, it makes total sense - Therapists have been burned plenty of times by platforms that promise support and then bury them in admin, push endless upsells, or quietly sell data. In this field, being suspicious is a survival skill.
But here’s the funny part: if we charged $100 a month, hardly anyone would raise an eyebrow. Pricey software has been normalized to the point where “expensive” feels credible and “free” feels suspicious. That irony isn’t lost on us.
Allia Health’s Mission Summarized
We want mental health providers to run their own practices, supported by technology that actually makes their lives easier.
Why is it free? What’s the catch?
There is no catch for individual providers. Their data will not be shared with payers, because Allia is building something more sustainable and genuinely helpful.
We are launching a Clinically Integrated Network [CIN] in one state, starting with around 100 providers. A CIN is structured to group providers so they can deliver coordinated care, powered by technology — in this case, our EHR. It allows providers to maintain their independence, rather than being absorbed by larger organizations, while also securing better reimbursements. If you’re not familiar with what a CIN is, check these out: Clinii and First Choice Health.
It’s the opposite of most business models because it doesn’t scale in the traditional sense. But that’s the point: we’re building something that strengthens providers instead of extracting from them.
Frequently Asked Questions
How will Allia sustain itself financially long term?
As covered above, unlike what many big tech companies might have led people to believe, running a free EHR doesn’t actually cost that much. We hosted an AMA where we explained this in more detail: Behind the Scenes at Allia: Our First Live AMA with Therapists.
Will Allia eventually start charging subscription fees after getting users hooked?
No. Individual providers will never be charged to use Allia. We are also working on a “practice” version so smaller group practices can use it for free as well.
Will Allia take a percentage of insurance claims like Headway or Rula?
No — in fact, quite the opposite. Here’s how companies like Headway work: they negotiate higher reimbursement rates (about 20–30% more than a provider would typically get) but then take a large portion of those payments, including pieces of your copays, leaving you with roughly the same as before or even less.
Some providers now using Allia for billing have told us they are taking home more than they did previously. Allia will never skim your reimbursements. Instead, we’re launching a CIN where clinicians earn more than they do today, in a practice infrastructure that uplifts and supports them. We’re intentionally building this slowly and sustainably rather than chasing fast scaling.
What exactly does “data collection” mean in practice?
If you’re a provider using Allia, we don’t access your data. Everything is end-to-end encrypted.
What will Allia do with collected therapy session data?
Nothing. We don’t use it, and we have no plans to launch an AI therapist. In fact, I’ve been one of the more vocal critics of AI therapy startups (feel free to check my LinkedIn).
Does opting out of AI features actually prevent data collection?
Yes. If a client doesn’t opt in to transcription, nothing is recorded or stored for that session.
Are therapists training their own AI replacements by using Allia?
No. As mentioned above, Allia has no plans to build an AI therapist or replace therapists in any way. We are publicly and firmly against that idea, and we will never train an AI therapist or enable another company to do so.
How will Allia use pooled session data to negotiate higher reimbursement rates?
We’ve linked to a blog and shared more context about CINs and how they work. To summarize: a CIN supports better intake experiences, easier care coordination, and smoother referrals. These improvements are exactly what payers value, which allows us to negotiate higher rates. This isn’t a new idea — many groups already do this, though often in a less tech-forward way.
Which clearinghouse does Allia use for billing?
We use Stedi. It’s API-first, ensures claims are always correct, and providers are paid within 7–10 days. There are no costs for individual providers to use our billing features.
What are Allia’s success rates with claims?
So far, 100%. With an API-first integration, errors are eliminated. Providers using Allia for billing haven’t faced any denials.
Will therapists eventually need to join group contracts like Headway?
No. You can continue to practice however you want, with complete freedom.
Is Allia financed by insurance companies?
No. We know this has been one of the ways other companies have harmed the ecosystem. We are not financed by insurers and have no plans to be.
TL;DR: We’re not selling data, we’re not training AI therapists, and we’re not doing anything that harms therapists or the therapeutic relationship. We really do want to improve the system.
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