Vanna Health, a startup dedicated to improving serious mental illness care, has raised $29 million in funding ahead of its official launch. Founded in 2021, Vanna seeks to bridge gaps in the healthcare system by connecting patients with serious mental illness (SMI) to community resources, clinics, and support services through a value-based care model. The company is co-founded by Dr. Thomas Insel, former director of the National Institutes of Health (NIH) Mental Health division, who serves as executive chair, and Dr. Giovanni Colella, a serial entrepreneur and Vanna’s CEO. Together, they are working to transform the landscape of serious mental illness care.
The funding will enable Vanna to expand into Massachusetts, Pennsylvania, and Arizona, hiring clinicians, mental health coaches, and other professionals to create a comprehensive care team. Insel emphasized that the startup’s mission is about more than treatment—it’s about connecting patients to the broader community ecosystem to improve outcomes and reduce long-term costs. “We’re just beginning to create the partnerships and figure out the plan for engagement in those communities,” Insel said.
A Value-Based Approach to Serious Mental Illness Care
At the core of Vanna Health’s strategy is a shift from traditional fee-for-service models to value-based behavioral health care. Unlike fee-for-service systems, which pay providers for each visit or procedure, value-based care ties payments to patient outcomes, encouraging holistic and proactive support. While such models have been successful in areas like maternity care and orthopedic procedures, implementing them in serious mental illness care has been a significant challenge.
By partnering with insurers such as Blue Cross Blue Shield of Massachusetts and Arizona, Vanna is piloting solutions that integrate behavioral health with social and community supports. “We’ve done this pretty well in a few areas, but in behavioral health, it’s been really hard to move from fee-for-service models to any at-risk or value-based approaches,” Insel said. The goal is to prove that improved outcomes and cost savings can coexist in serious mental illness care.
Community Partnerships Are Key
Vanna Health emphasizes that no single provider or facility can deliver comprehensive serious mental illness care alone. Insel explained, “There’s no one entity… nobody’s got all the cards in the deck. You’re going to have to bring them all together.” The company’s model focuses on collaboration across clinics, crisis services, housing programs, and social support networks to ensure patients receive not only clinical treatment but also the wrap-around services essential for recovery.
Central to Vanna’s mission is the “three Ps”: providing people, place, and purpose for individuals with SMI. Insel believes that focusing on these elements can prevent homelessness, reduce incarceration, and support meaningful engagement in society. “If we did this well, comprehensively, continuously, and compassionately, we could really help a lot of people who today end up incarcerated or homeless or just really struggling,” he said.
The Business Case for Serious Mental Illness Care
While Vanna Health operates as a for-profit entity, Insel sees a clear business rationale for its approach. Individuals with SMI often represent some of the highest-cost patients for health plans, particularly Medicaid. Research from the Substance Abuse and Mental Health Services Administration indicates that the lifetime burden of SMI can reach $3 million per patient.
“The expense is not on the behavioral health side; it’s on the medical side,” Insel explained. “For $45,000 a year, you could do a lot for that person. They can have a concierge social worker, they can have a pretty nice place to live. There’s really a lot of opportunity to serve them in a different way if you focus on people, place, and purpose—not just on making sure that they’re getting another ER visit or a hospital stay.”
By investing in preventive care and community-based support, Vanna aims to reduce costly hospitalizations and emergency interventions, improving outcomes for patients while decreasing overall healthcare expenditures. This creates a sustainable model for scaling serious mental illness care across multiple states.
A Growing Ecosystem of Mental Health Startups
Vanna is part of a broader wave of startups innovating in serious mental illness care. California-based Amae seeks to unify behavioral health, primary care, and community support, while New York-based firsthand focuses on connecting patients with peer networks to help them access care. Vanna distinguishes itself through its emphasis on value-based care and integrating social support alongside clinical services.
As the company rolls out its model in 2023, it will test strategies, refine partnerships, and evaluate what works best for patients with SMI. Insel stressed that the process will take time but is critical to establishing scalable, effective serious mental illness care solutions.
Looking Ahead
With $29 million in funding and an experienced leadership team, Vanna Health is poised to reshape serious mental illness care in the United States. By combining clinical expertise, community partnerships, and a focus on people, place, and purpose, the company is creating a model that could redefine outcomes for some of the most underserved patients in the healthcare system. For individuals, families, and communities affected by SMI, Vanna Health represents a promising new approach—one that focuses on long-term wellness, stability, and the opportunity to thrive.
