Headway, a startup that connects sufferers to in-network therapists, introduced the shut of a $125 million Collection C funding spherical on Thursday.
The financing spherical brings the New York-based firm’s complete funding quantity to $225 million and its valuation to $1 billion, reaching unicorn standing. The Collection C spherical was led by Spark Capital with participation from Thrive Capital, Accel, Andreessen Horowitz and Well being Care Service Company.
The startup, based in 2017, seeks to extend People’ entry to psychological well being care. It’s been well-documented that the nation is embroiled in a rising psychological well being disaster, but so many individuals who want care don’t obtain it.
“I skilled firsthand the challenges of being unable to discover a therapist who accepted my medical health insurance. As soon as I did, I couldn’t get an appointment after I wanted it most. I shortly realized that not solely was this not distinctive to me, it was one thing hundreds of thousands of individuals confronted,” stated Headway CEO Andrew Adams.
When he and his founding crew had been creating Headway, Adams shortly realized in regards to the immense hurdles that psychological well being suppliers face when making an attempt to work with insurance coverage firms to supply in-network care to sufferers. Whereas many individuals recommend that addressing the the nation’s psychological well being disaster is a matter of accelerating the online provide of suppliers, he argued that this isn’t the core situation.
In his view, the actual situation is the dearth of entry to psychological well being suppliers who already ship nice care however face obstacles to accepting insurance coverage.
Taking insurance coverage is kind of administratively burdensome for therapists, so lots of them don’t. Adams identified that almost all therapists “are mother and pop outlets” who don’t have and may’t afford to rent administrative employees to handle varied duties like credentialing, billing, finishing insurance coverage paperwork, submitting claims and maintaining with compliance necessities.
“That’s precisely the problem we’re fixing for. Headway is constructing a brand new psychological well being care system that each individual can entry by making it simple for therapists to take insurance coverage and scale their apply,” he defined. “Immediately, we’re the nation’s largest community of 26,000 therapists and psychiatrists who actively take insurance coverage.”
Headway’s know-how “takes care of the entire pains” of getting enrolled with an insurance coverage firm, from taking a look at advantages to submitting claims to managing income cycle, Adams declared. Psychological well being suppliers see sufferers and receives a commission whereas Headway “offers with the entire work behind the scenes,” he stated.
To get linked with an in-network supplier, sufferers can go to Headway’s web site and enter their location and insurance coverage data. They’ll seek for each in-person and digital care, and so they can filter their supplier search outcomes primarily based on their race, ethnicity, language and sexuality. On common, folks attend their first appointment 5 days after they ebook, Adams identified.
Along with serving suppliers and sufferers, Headway additionally advantages payers, he declared.
“As a result of we have now an built-in know-how platform, the payer is ready to higher perceive if their members are getting care or not. Additionally they get consolation that their members are getting more healthy. This week, BCBS Texas reported that they noticed a 5% discount in inpatient acute behavioral well being admissions since 2021, which the well being plan correlates with Headway’s skill to attach members to outpatient behavioral well being care inside 48 hours,” Adams defined.
Headway’s platform is free to make use of for sufferers and suppliers. The corporate operates by taking a small share from the premium paid by well being plans.
When requested how Headway differentiates itself from different platforms that join folks with in-community suppliers like Zocdoc, Adams stated that his startup is the biggest community of suppliers taking insurance coverage.
“Headway is the best choice for payers seeking to broaden psychological well being entry for his or her members. It’s the best choice for suppliers who’re anticipating aggressive charges and help to develop a profitable apply. And it’s the best choice for sufferers on the lookout for a various, high-quality group of therapists to select from to get the absolute best care,” he declared.
The corporate at the moment operates in 44 states and Washington, D.C. It will likely be in all 50 states by the tip of the yr, Adams stated.
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