Behavioral healthcare has long lived adjacent to the the traditional delivery system of U.S. hospitals, but that's changing as providers and payers begin to view patients more holistically.
In turn, a number of companies are betting on behavioral health, with a new twist using telehealth principles. Vendors Teladoc and American Well for example are stepping into a vacuum created by a psychiatrist shortage, providing complementary services to primary care settings.
Providers are exploring these offerings, and some are seeing a return on investment. But there's still work to be done to integrate mental health into the larger healthcare delivery system. It's helping that payers are getting on board, with a push to to combine behavioral health and primary care.
“Anytime Medicare and Medicaid or private insurers see they have a group that costs 230-250% more, they are going to want to bring that down,” said Bill Bithoney, senior clinical fellow in BDO Advisory’s Center for Healthcare Excellence & Innovation, told Healthcare Dive. “That’s the motivation for states to allow the billing for telebehavioral health given the shortage of providers.”
New York's Medicaid redesign, for example, has pushed for co-location to allow immediate access to behavioral health programs in the primary care office.
Healthcare costs are a big driver and New York isn't alone.
Spending on behavioral health has grown steadily at 5-7% since 1986, and is projected to reach $281 billion in 2020. In April, Teladoc announced the U.S. launch of its Behavioral Health Navigator, a suite of services to combine individualized support and care coordination with virtual access to mental health providers. Others betting on the space include Quartet Health, Avizia, Lyra Health, Vida and Doctor On Demand.