Headway, a company building a new mental healthcare system, announced a $100 million Series D funding round and its planned expansion to Medicare Advantage and Medicaid. These developments will enable clinicians on the platform to scale their practices and provide affordable and effective mental health care to a broader and more diverse community of patients, including seniors, low-income Americans and individuals living with disabilities. This recent funding values the company at $2.3 billion, which is a 130% increase from its previous valuation.
The funding round was led by Spark Capital, with participation from existing investors Thrive Capital, Accel and a16z, and new investor Forerunner Ventures. And this round will accelerate platform development to simplify private practice operations so providers can focus on delivering excellent clinical care.
Headway streamlines credentialing, onboarding, clinical training, scheduling, billing etc., making it easy for mental health clinicians to accept patients through insurance. And Ssince launching in 2019, the company scaled its platform with commercial insurance, and is in-network today with over 40 commercial health plans across 50 states and the District of Columbia.
With 34,000 clinicians utilizing Headway’s platform to run their private practice, Headway will now expand its services to allow providers to serve patients through Medicare Advantage and Medicaid. And the company and its affiliates have begun working with Medicare Advantage plans in certain states, with thousands of clinicians already participating. Headway expects to be live with Medicare Advantage in 51 markets by the end of the year, and plans to launch with Medicaid in 2025. Medicare Advantage and Medicaid cover over 100 million people (nearly one-third of Americans) who experience higher rates of need, but face additional barriers to care.
KEY QUOTES:
“Headway believes that every person across this country deserves access to not just any care, but great and affordable care. Headway’s community of clinicians are well-equipped to deliver great mental health care services to those in need. This funding positions Headway to accelerate our expansion into Medicare Advantage and Medicaid to meaningfully improve the lives of millions of people, which we know is important to the providers who use our platform.”
– Andrew Adams, Founder & CEO of Headway
“Headway has made working with Medicare easier for me through enrollment, onboarding and navigating compliance expectations. I can truly say that I would not be accepting Medicare clients without Headway. Accepting Medicare is important to me because it allows me to reach a population that has been historically underserved.”
– Andre Maxie, LMFT, an early adopter of Headway’s Medicare Advantage expansion
“Headway is quickly becoming the centralized platform for mental health care access and delivery. The company is uniquely positioned to bring together providers, patients and payers and unite a fragmented system, and Spark Capital is excited to further support its mission and growth.”
– Will Reed, General Partner at Spark Capital and Headway Board Member
