Psychological well being firm Headway has raised $100 million in Sequence D funding, which it would use to develop to Medicare Benefit and Medicaid beneficiaries, the corporate introduced Tuesday.
New York Metropolis-based Headway makes it simpler for psychological well being clinicians to just accept sufferers by means of insurance coverage by serving to them with credentialing, onboarding, medical coaching, scheduling, billing and different companies. By means of Headway’s platform, sufferers are in a position to seek for psychological well being suppliers by location, concern and insurance coverage service, and schedule an appointment inside 48 hours. The corporate has 34,000 suppliers and is in community with greater than 40 business well being plans throughout the U.S.
The $100 million Sequence D funding spherical was led by Spark Capital and included participation from Thrive Capital, Accel, a16z and Forerunner Ventures. In complete, Headway has raised greater than $325 million, in keeping with Crunchbase. The Sequence D spherical brings the corporate’s worth to $2.3 billion.
Headway simplifies the method for accessing psychological well being care, in keeping with Will Reed, normal accomplice at Spark Capital and Headway board member.
“Headway is shortly turning into the centralized platform for psychological well being care entry and supply,” Reed stated in a press release. “The corporate is uniquely positioned to deliver collectively suppliers, sufferers and payers and unite a fragmented system, and Spark Capital is worked up to additional help its mission and progress.”
The corporate will use the funding for its deliberate growth into Medicare Benefit and Medicaid. Headway has already began working with Medicare Benefit plans in some states, and anticipates increasing to 51 markets by the top of 2024. It would begin working with Medicaid in 2025.
“There’s a rampant want for elevated entry to psychological well being care companies amongst these populations, and our group of clinicians overwhelmingly need to fill the gaps,” stated Olivia Davis, chief business officer of Headway, in an electronic mail. “Once we surveyed suppliers on our platform final yr about this subject, they stated that the primary motive they took insurance coverage was to ‘present entry to look after these that won’t be capable to afford non-public pay companies.’ Headway is constructing the nuanced merchandise and applications required to allow clinicians to just accept sufferers from these plans.”
Medicare Benefit and Medicaid collectively cowl nearly one-third of Individuals. They typically have better healthcare wants however encounter further obstacles to receiving care. Regardless of one in three Medicaid beneficiaries and one in 4 Medicare beneficiaries dwelling with a psychological sickness, accessing psychological well being companies stays difficult on account of a extreme scarcity of suppliers, in keeping with a March 2024 report from the U.S. Division of Well being and Human Providers.
“It is because authorities applications have an extra layer of operational burden, corresponding to extra complicated credentialing processes and stricter compliance necessities [for providers], when in comparison with business plans,” Davis stated. “We’re investing within the expertise to alleviate this operational and administrative burden, and in the end make it straightforward for clinicians to ship care to those sufferers.”
Different firms that join sufferers to psychological well being suppliers embrace Alma and Develop Remedy, the latter of which lately raised $88 million in Sequence C funding.
Photograph: Nuthawut Somsuk, Getty Photographs