Forge Health, a White Plains, New York-based provider of mental health and substance use disorder (SUD) treatment, has raised $10 million in new funding to expand its innovative care model. This latest equity round is part of a broader $21.5 million funding effort in 2022, aimed at scaling both in-person and virtual clinics while strengthening partnerships with accountable care organizations, payers, and employers. Forge Health CEO and Co-founder Eric Frieman emphasized that the funding will allow the company to enhance its Value-Based Mental Health Care approach, which has been central to its growth and patient outcomes.
Recent Funding Rounds
Earlier in 2022, Forge Health raised $11.5 million through convertible notes, which have now been converted alongside the new equity funding. New York City-based venture capital firm HC9 Ventures led both rounds, with 31 investors participating in the latest round. The first sale of the equity round took place on December 5, reflecting strong investor confidence in Forge Health’s ability to deliver both clinical excellence and measurable business results. Frieman noted that additional investors are expected to join, further increasing the total funding raised.
Focus on Value-Based Mental Health Care
Forge Health’s model focuses on value-based mental health care, using multidisciplinary teams and advanced patient analytics to optimize care for individuals with multiple comorbidities. By emphasizing outcomes over service volume, the company has achieved impressive results: its internal study shows a 75% reduction in hospital admissions and a 62% decrease in emergency room visits for patients treated under this approach. By prioritizing value-based mental health care, Forge Health ensures that patients receive comprehensive, coordinated treatment that addresses both mental health and substance use needs.
Strategic Growth and Clinic Expansion
Since its founding in 2016, Forge Health has pursued a deliberate growth strategy. Unlike many behavioral health providers that focus on rapid expansion, Forge Health first refined its clinical model before seeking external funding. Today, the company operates in eight states, employs over 150 professionals, and maintains multiple value-based care contracts. By mid-2023, Forge Health plans to operate 19 clinics across Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Virginia. This careful expansion strategy allows Forge Health to scale without compromising the quality of value-based mental health care it delivers.
Business Growth and Industry Recognition
The company’s growth has been remarkable. Ranked No. 792 on the Inc. 5000 list, Forge Health increased revenue by 800% from 2018 to 2022, positioning it among the fastest-growing healthcare companies in the United States. Seed funding from San Francisco-based Montage Ventures helped launch the company, and its disciplined approach to scaling has allowed it to combine business success with measurable clinical outcomes. Frieman stressed that establishing a strong clinical foundation first is key to delivering consistent, high-quality value-based mental health care.
Strengthened Leadership
In addition to financial and operational growth, Forge Health has strengthened its leadership team. Timothy Wentworth, former CEO of Evernorth (Cigna’s health services arm) and Express Scripts, has joined Forge Health as board chairman. According to Frieman, Wentworth’s addition represents the maturation of the company’s model, reflecting the organization’s success in both business and clinical execution. With leaders like Wentworth on board, Forge Health is well-positioned to continue expanding its model of value-based mental health care nationwide.
Value-Based Care in the Behavioral Health Industry
Forge Health joins a growing number of behavioral health providers emphasizing value-based care, including Eleanor Health in Massachusetts and Brave Health in Miami. By aligning incentives with patient outcomes, value-based mental health care encourages providers to deliver comprehensive treatment that reduces hospitalizations and emergency visits, while improving patient satisfaction and overall health.
Looking Ahead
Looking ahead, Forge Health plans to use its new funding to accelerate expansion through new clinic openings and virtual care offerings. By combining strong clinical quality, advanced analytics, and strategic partnerships, the company aims to redefine how mental health and substance use disorder care is delivered. This funding round supports not only expansion but also the ongoing mission of delivering high-quality value-based mental health care that produces measurable, long-term results for patients.
With its disciplined approach to growth, robust leadership, and proven clinical model, Forge Health is poised to continue leading the transformation of mental health and substance use treatment in the United States. By emphasizing outcomes over volume, Forge Health demonstrates that value-based mental health care can be both clinically effective and financially sustainable, setting a new standard for the behavioral health industry.
