Headway, a startup that makes it simpler for therapists to take insurance coverage and for sufferers to seek out them, raised $26 million in Collection A funding, the corporate introduced Wednesday.
Many therapists don’t settle for insurance coverage as a result of it pays far decrease charges for psychological healthcare in comparison with bodily care. Others could also be open to seeing sufferers at decrease charges however nonetheless don’t take insurance coverage as a result of, engaged on their very own or in a small follow, they don’t have employees to handle the paperwork wanted to receives a commission.
The medical health insurance forms is about up for big healthcare establishments “that may afford to make use of legions of billers,” stated cofounder and CEO Andrew Adams. Headway helps by dealing with reimbursements and different workplace duties for therapists and, by way of the corporate’s contracts with insurance coverage corporations, permits therapists to see sufferers as in-network suppliers.
“In case you make accepting insurance coverage sufferers simpler,” he stated, “you possibly can radically enhance the participation of therapists.” Accepting insurance coverage sufferers permits therapists to develop their follow, stated Adams, and to begin seeing sufferers who couldn’t afford to pay out-of-network charges. With extra therapists taking insurance coverage, extra individuals who couldn’t afford an out-of-network supplier will have the ability to get care.
The funding, which is able to permit the New York-based firm to develop nationally, was led by enterprise corporations Thrive Capital and GV (previously often called Google Ventures). IA Ventures and GFC additionally contributed, as did Accel, which took the lead in Headway’s $6 million seed spherical in 2019.
Headway is positioned to rapidly develop throughout the nation as a result of it really works with therapists who’re already licensed and training. Its scalability appealed to Thrive Capital, stated Kareem Zaki, a companion on the agency, in an emailed assertion. “We urgently want new, however extra importantly, reasonably priced options,” stated Zaki, who joined the board as a part of the funding. Increasing Headway, he stated, will assist folks throughout the nation “discover reasonably priced and available remedy.”
Suppliers don’t pay for Headway instantly, however the firm takes a reduce of insurance coverage firm funds. Of that quantity, Headway can preserve greater than a conventional hospital or clinic as a result of its software program automates what hospitals and clinics need to pay employees to do.
Headway’s search device permits sufferers, after getting into their insurance coverage data, to seek for suppliers who settle for their well being plan filtered by ZIP code, specialization and different preferences. They will additionally see their copay for a supplier and e book an appointment on the positioning.
Adams was impressed to begin Headway by his expertise of in search of a therapist when he moved to New York Metropolis in 2015. He wasn’t capable of finding an reasonably priced supplier as a result of none of them accepted his insurance coverage. “This isn’t an issue distinctive to me,” he stated. “That is the defining downside” in psychological well being. Headway has collected its personal information to again up that declare: In 2018 it surveyed 1,000 therapists in a Psychology At the moment listing, discovering that 70% weren’t accepting new sufferers on insurance coverage.
Headway launched in 2018, elevating $6 million in seed funding the next yr. It started signing up therapists and different psychological well being suppliers all through New York state. It now works with greater than 1,800 suppliers, two-thirds of whom are solely accepting insurance coverage by way of Headway.
Now, stated Adams, “suppliers can convey aboard sufferers who they sometimes must say ‘no’ to. Now these therapists get to say ‘sure’ to these sufferers.”