Providing comprehensive mental health services has long been both a strength and a challenge for Brooklyn, New York-based Valera Health. Since its founding in 2015, the company has worked to treat a full spectrum of patients—from pediatric cases and adults with mild mental health conditions to those living with serious mental illnesses (SMI). This broad approach has allowed Valera Health to meet the diverse needs of its patient population while simplifying care coordination for health plan and provider partners.
“I think health insurance companies and provider organizations want a practice partner that can actually provide a full range, not just a point solution for one thing here and one thing there,” said Valera Health Co-Founder and CEO Dr. Thomas Tsang.
By offering comprehensive mental health services, Valera Health sets itself apart in a fragmented market where many providers focus narrowly on specific conditions or age groups.
From Telehealth Pioneer to Expanding Physical Presence
For much of its history, Valera Health operated exclusively as a telehealth provider. Telehealth allowed the company to rapidly scale its services and reach patients across multiple states while minimizing overhead costs. However, the limitations of a purely virtual model became apparent as the company sought to provide even more comprehensive mental health services, particularly for patients with serious mental illness who may require in-person assessments or interventions.
Recently, Valera Health opened its first office location in Manhattan, marking a significant step toward combining telehealth with physical clinic access. While the company is still in the “very early days” of considering additional office locations, this expansion underscores its commitment to offering flexible, multi-channel care.
A Private Practice Model with Broad Reach
Operating under a private practice model, Valera Health treats both patients referred through partner networks and those who self-refer. This model gives patients greater flexibility and access while enabling the company to maintain high-quality care across its comprehensive mental health services offerings.
The company’s clinical services include therapy, medication management, and case management. With approximately 400 providers and accessibility to 37 million lives through Medicaid, Medicare, and commercial health plan partnerships, Valera Health can deliver a full spectrum of behavioral health support.
Treating Serious Mental Illness with a Holistic Approach
One of the most distinguishing features of Valera Health’s model is its holistic approach to serious mental illness. Treating SMI requires more than just standard therapy—it demands attention to physical health, ongoing monitoring, and strict adherence to quality standards.
Patients with serious mental illness often experience worse health outcomes than those without. Studies indicate that individuals with SMI may die 10 to 20 years earlier than the general population, and patients with co-occurring behavioral health and chronic physical conditions face healthcare costs two to three times higher than average.
By offering comprehensive mental health services, Valera Health addresses these risks through evidence-based care and the highest quality standards set by the National Council on Quality Assurance. The company monitors cholesterol and lipid levels in patients taking antipsychotics, which can elevate cholesterol, and tracks diabetes risk in patients on antipsychotics for extended periods. This integrated approach ensures patients with SMI receive the full spectrum of behavioral and physical health care.
The Medicaid Challenge
Providing comprehensive mental health services is not without challenges, especially when it comes to Medicaid reimbursement and regulatory requirements. Payment structures vary across payers, and high-acuity patients are often reimbursed at the same rate as those with milder conditions.
Medicaid presents unique hurdles. According to a 2019 MACPAC report, only 35.7% of psychiatrists accepted new Medicaid patients—the lowest rate among medical specialties. Many Medicaid networks operate as “phantom networks,” creating administrative barriers to care.
“We’re one of the few companies that actually accepts Medicaid patients and managed Medicaid patients,” said Dr. Tsang. “I would say that the [Medicaid] reimbursement model has to be improved. … There needs to be a greater acceleration of value-based models and a moving away from fee-for-service models.”
By accepting Medicaid patients, Valera Health expands access to comprehensive mental health services for populations that are often underserved.
Telehealth Regulations and Industry Uncertainty
Valera Health’s telehealth roots add another layer of complexity. Different states have unique credentialing and licensing requirements, and telehealth providers often must navigate health plan approvals. On a federal level, regulatory questions remain around parity and the Ryan Haight Act, which governs in-person consultations for prescribing controlled substances.
Despite this, the pandemic-driven demand for behavioral health services and telehealth integration has created a favorable market for Valera Health. Health plans, employers, and provider groups increasingly recognize the need for accessible comprehensive mental health services.
“Every single health partner has welcomed us with open arms and said, ‘We need you, we want you, our patients need you,’” said Dr. Tsang.
Looking Ahead: Expansion and Innovation
Valera Health is still in the early stages of physical expansion, but the company’s combination of telehealth and in-person care positions it well for growth. By continuing to offer comprehensive mental health services, the company addresses critical gaps in care and supports both mild and serious mental health needs.
As the company navigates Medicaid, regulatory challenges, and telehealth policy shifts, its commitment to high-quality, holistic care ensures it remains a leader in the mental health space in New York and beyond.
Conclusion
Valera Health exemplifies a modern approach to mental health care, combining telehealth, in-person services, and strict quality standards to deliver comprehensive mental health services. By treating patients across the spectrum—from mild conditions to serious mental illnesses—the company simplifies care for partners, improves outcomes, and expands access for underserved populations.
While challenges remain in Medicaid reimbursement and regulatory compliance, Valera Health’s model demonstrates how holistic, patient-centered care can transform mental health services in New York. For patients, providers, and health plans alike, the company represents a scalable, high-quality solution to the ongoing need for comprehensive mental health services.
