I cat believe a psychiatrist, someone who is supposed to good at handling people, is making such demands in such an uncaring fashion! If he is tied by new laws/regs/insurance then its fair for him to say he cant treat you anymore. But you would have thought he'd have found a more sensitive way of doing it! If its not mandatory and its just his preference then he's well out of line!
Either way, I would ditch the psychiatrist and get a new one.
Everyone has a guardian angel. They help pick you up when you fall, comfort you through your times of need and help you appreciate the times when things are going well.