Talkiatry Secures $130M Series C Funding to Mainstream Value-Based Behavioral Health Care

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Jun 18, 2024, 07:30 ET

Led by Andreessen Horowitz, latest fundraise supports Talkiatry as it scales high-quality, in-network care
For leading national health plan, Talkiatry cut patient hospitalizations by 68%, emergency room visits by 32%, and saved $700 in total cost of care per member per month vs peers
Psychiatric care visionary proves that outcomes-based, doctor-led mental health care can be delivered in value-based arrangements

NEW YORK, June 18, 2024 /PRNewswire/ -- Talkiatry, a leading provider of high-quality, in-network psychiatric care, today announced a $130 million equity and debt financing round. The equity round was led by Andreessen Horowitz (a16z) with participation from Perceptive Advisors, and debt financing was provided by Ban c of California. The Series C investment will fuel Talkiatry's continued expansion of its value-based care model for behavioral health, reducing total cost of care, improving health outcomes, and producing real savings for patients, health plans, and health system or provider group partners. Talkiatry's total raise to date is $245 million, with previous participation from investors including Left Lane Capital and blisce/.

Talkiatry co-founders Dr. Georgia Gaveras, left, and Robert Krayn. PHOTO: ZAYIRA RAY

Americans are spending billions on behavioral care each year, but for many, their mental health is not improving. Just 31% of adults believe their mental health is "excellent," a 12% drop over the past 20 years. Although the mainstreaming of telehealth has aided in providing Americans with more behavioral care options, there is a dearth of outcomes and cost savings data, as well as a lack of physician-focused models, which previously limited health plans from establishing creative and scalable risk-based payment models.

Light years ahead of industry peers, Talkiatry has created a proven value-based behavioral health care model that expands access to quality treatment while improving outcomes and generating savings. A leading national health plan, for example, conducted a matched cohort analysis with both cohorts having similar demographics and conditions. One cohort received psychiatric care from Talkiatry's providers, while the matched cohort received care from other behavioral health providers in their network. Talkiatry's cohort achieved a 68% lower hospitalization rate, 32% fewer emergency room visits, and generated approximately $700 in savings per member per month on a total cost of care basis.

"Over the past few years we've built one of the country's largest and highest-quality in-network psychiatric practices, while proving with real-world data that we deliver superior health outcomes and cost savings," said Robert Krayn, CEO and Co-Founder, Talkiatry. "We're thrilled to be part of the a16z family as we continue to bring more health plans into value-based contracts and expand to reach more Americans in need."

Since its launch in 2020, Talkiatry has delivered high-quality telepsychiatry services across more than one million patient visits, including underserved populations that previously had little to no access to treatment. The company employs more than 300 full-time, licensed psychiatrists who serve patients with conditions including anxiety, bipolar disorder, depression, OCD, PTSD, and more, across 43 states. A study of Talkiatry patients found that after an average of five appointments over 15 weeks, 67% no longer had clinically significant anxiety symptoms, and 62% no longer had clinically significant depression symptoms. Talkiatry is in-network with more than 60 health plans, including Aetna, Blue Cross Blue Shield, United Healthcare, Cigna, and Humana, covering more than 70% of commercial lives in the U.S.

"Talkiatry has mainstreamed outcomes-based psychiatric health care and risk-based payment models. The company has built a reputation for providing affordable, high-quality treatment for psychiatric patients while creating robust partnerships with a continually-expanding payor network," said Scott Kupor, Managing Partner, a16z. "We look forward to working with Georgia, Robert, and the Talkiatry team to usher in a new era of innovation in this important area of mental health care."

To partner with Talkiatry, please visit: https://www.talkiatry.com/contact-us.

About Talkiatry
Talkiatry is a national mental health practice that provides in-network psychiatry and therapy. They were co-founded by a patient and a triple-board-certified psychiatrist to solve the problems both groups face in accessing and providing the highest quality mental healthcare. 60% of adults in the U.S. with a diagnosable mental illness go untreated every year because care is inaccessible, while 45% of clinicians are out of network with insurers because reimbursement rates are low and paperwork is unduly burdensome. With innovative technology and a human-centered philosophy, Talkiatry provides patients with the care they need—and allows psychiatrists to focus on why they got into medicine. Learn more at www.talkiatry.com and follow us on Instagram, TikTok, and LinkedIn.

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SOURCE Talkiatry