The coronavirus pandemic has disrupted the behavioral health industry in countless ways, forcing many providers to rethink their service models. However, San Francisco-based Ginger, a virtual behavioral health care startup, has experienced unprecedented growth amid the crisis, validating its model of delivering coaching, therapy, and psychiatry via text and video. By partnering with employers, health plans, and strategic partners, Ginger is expanding access to care and positioning itself for significant growth over the next few years.
Pandemic Accelerates Telehealth Adoption
Ginger’s business model has proven resilient during COVID-19. The pandemic accelerated the adoption of telehealth, resulting in higher engagement from users and growing interest from potential partners. According to CEO Russell Glass, the crisis highlighted the company’s ability to leverage technology to meet the increasing demand for mental health services. Historically, Ginger partnered primarily with large employers like Delta Air Lines, Domino’s, and Sephora, but the current climate has created opportunities to expand partnerships with health plans and other strategic players, bringing virtual behavioral health solutions to the forefront of national attention and fueling growth.
Series D Funding Supports Expansion
Earlier this year, Ginger secured $50 million in Series D funding from prominent investors such as Cigna Ventures and Kaiser Permanente Ventures, bringing the company’s total funding to $120 million. The infusion of capital will be used to support three core areas: research and development (R&D), strategic partnerships, and expansion of employer-focused services. Glass explains that R&D will allow Ginger to continue innovating with machine learning and artificial intelligence, enabling the platform to predict the most effective care pathways and personalized interventions for members. This technology enhances clinician and coach decision-making while also supporting self-care tools like content and activity cards.
Health Plan Partnerships as a Growth Driver
While Ginger’s current business primarily serves employers, the company sees health plan partnerships as a critical growth opportunity. Strategic collaborations, including partnerships with insurers like Cigna, allow Ginger to extend services beyond employer networks and reach more members efficiently. Glass projects that the health plan segment of Ginger’s business could double or even triple by 2022. Expanding these partnerships addresses the supply-and-demand imbalance in behavioral health care, which remains a persistent challenge across the industry.
Bridging the Mental Health Care Gap
Ginger’s mission centers on closing the gap between the growing need for mental health services and the limited availability of providers. Traditional network-based approaches alone cannot meet this demand, so Ginger leverages technology to scale high-quality care. The pandemic intensified behavioral health needs, driven by increased stress, social isolation, and financial uncertainty. In response, Ginger experienced significant growth: coaching sessions surged by 180% year-over-year in July, while therapy and psychiatry sessions rose by 364% compared to the previous year, demonstrating the platform’s ability to adapt to emerging mental health challenges.
Maintaining Quality Amid Growth
Despite the surge in demand, Ginger has maintained high-quality service delivery by scaling its workforce in line with projected growth. The company has hired additional therapists, psychiatrists, and coaches to ensure that demand does not compromise care quality. Glass notes that the severity of cases has increased during the pandemic, with more users requiring higher levels of care. Ginger’s scalable model allows it to respond effectively to these evolving needs, demonstrating the flexibility and resilience of its virtual platform.
Short-Term and Long-Term Goals
In the short term, Ginger is focused on three main objectives: continuing R&D efforts, expanding strategic partnerships, and growing employer-focused services. The company aims to reach not only large employers but also small and medium-sized businesses, further broadening access to mental health support. Long-term, Ginger envisions a world where mental health is never an obstacle to well-being or productivity. The company’s goal is to deliver high-quality care at low cost and at scale, with an emphasis on leveraging technology to overcome traditional barriers to access. Public health programs like Medicare and Medicaid are also key components of this vision, as extending services to government-funded populations is essential for widespread impact.
Leveraging Technology for Scalable Care
Ginger’s platform utilizes advanced technology to deliver personalized care while supporting clinicians with decision-making tools. Machine learning algorithms predict the most effective interventions for each user, optimizing outcomes and improving efficiency. In addition, Ginger empowers members with tools for self-care, allowing them to actively participate in their mental health journey beyond clinical sessions. This focus on technology-enabled, scalable care positions Ginger for continued rapid growth within an evolving behavioral health landscape.
Telehealth’s Enduring Role
COVID-19 has accelerated telehealth adoption across the behavioral health industry, and Ginger’s virtual model is well-positioned to meet this demand. The pandemic has normalized video- and text-based care, reducing stigma and increasing comfort with digital mental health services. Glass predicts that telehealth will remain a permanent fixture, even as the public health crisis subsides, as many users will continue to prefer the convenience and accessibility of virtual care.
Preparing for Continued Growth
Ginger’s leadership is committed to proactive growth strategies, including mergers, acquisitions, and internal development. Over the past several years, the company has acquired multiple technology assets and plans to pursue further opportunities for inorganic growth. These initiatives aim to expand the platform’s reach, strengthen service offerings, and enhance technological capabilities, ensuring Ginger remains at the forefront of digital behavioral health innovation.
Conclusion
Ginger’s experience during the COVID-19 pandemic highlights the potential of a scalable, technology-driven approach to behavioral health care. The company has leveraged increased demand, strategic partnerships, and innovative technology to expand access while maintaining high-quality service. With $120 million in funding and a clear focus on R&D, strategic partnerships, and employer services, Ginger is poised for rapid growth. The CEO’s goal of doubling or tripling the health plan portion of the business by 2022 underscores the company’s ambition to reach more members and address the mental health care supply-and-demand gap. By combining telehealth, AI-driven insights, and personalized care, Ginger is setting a new standard for accessible, scalable, and effective behavioral health services. The company’s trajectory demonstrates that the future of behavioral health care will increasingly rely on virtual platforms, strategic partnerships, and technology-enabled solutions, transforming the way mental health care is delivered and expanding access to those who need it most.
