From the American Psychological Association Website.
DSM-IV and -V will need to be converted to ICD-10 (see more articles on this subject on the APA website). As HIPPA-covered individuals, they absolutely must follow the ICD-10 mandate.
You're correct about EHR/Meaningful use, but ICD-10 is a separate topic altogether. They will be expected to comply, if they will be submitting claims to insurance companies for their services.
The APA also has some nice guidelines for small practice conversions. I'd encourage you to point them to that direction (then stand back and listen for the popping sound as they remove their heads from the sand...) This also involves social workers, and certified master's level counselors, as long as they're credenitalled to bill out their services. Not to mention psychiatrists.
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