As we head into 2023, the mental health industry faces a complex landscape shaped by economic uncertainty, evolving patient expectations, and increasing scrutiny from payers and providers alike. Several trends are converging around Value Based Mental Health Care, forcing mental health organizations to sharpen their operational, financial, and clinical strategies. Executives across the behavioral health spectrum—from established companies to emerging startups—are preparing for a year where demonstrating tangible value will be critical.
Economic pressures that led to widespread layoffs across sectors, including behavioral health, have not abated. Should these pressures worsen, more families could face gaps in health insurance and reduced incomes, magnifying existing barriers to accessing care. Providers that rely heavily on cash-pay revenue may face particular challenges, requiring them to rethink pricing models, expand affordability initiatives, or adapt their service offerings.
At the same time, the battle for skilled clinical talent is expected to intensify. Organizations that proactively invest in workforce retention, professional development, and clinician support will be better positioned to maintain high-quality care and sustain growth. Concurrently, health plans will continue to focus on the connection between physical and behavioral health, expanding holistic approaches to insurance coverage and driving deeper conversations about what services are reimbursed and how.
New market entrants and the expansion of existing companies will give patients more options than ever. This increase in choice underscores the importance of delivering superior patient experiences, from ease of access to the quality of care provided. Providers that fail to meet these expectations may struggle to retain clients in an increasingly competitive landscape.
Lessons from the Pandemic: Innovation and Digital Transformation
The COVID-19 pandemic fundamentally reshaped the mental health industry, accelerating technology adoption and digital transformation. While many hope that pandemic-related disruptions will fade into the background, the innovations sparked by necessity continue to shape care delivery.
Marc D. Miller, President and CEO of Universal Health Services, emphasizes that future-oriented innovations will enhance operations, patient experience, and care delivery. These innovations include new digital tools, improved workflow automation, and hybrid models of care that combine in-person and virtual services. The pandemic also helped reduce stigma around mental health, as awareness and understanding grew across communities. Initiatives like the national 988 crisis helpline, launched in 2022, are expected to further increase awareness and reduce barriers to care.
The underlying message is clear: organizations that can harness technology while maintaining human-centered care are likely to succeed in a market defined by accessibility, quality, and the principles of Value Based Mental Health Care.
Economic Pressures and the Imperative of Demonstrating Value
Inflation, the threat of recession, and ongoing corporate layoffs are creating a dual reality for mental health providers: a greater demand for services coupled with financial constraints for many patients. Will Furness, CEO of Thriveworks, highlights that this environment will drive demand for quantitative measures of outcomes from clients, payers, and government agencies. Providers will need to demonstrate that their services produce tangible results—improvements in patient well-being, productivity, and overall health outcomes—hallmarks of Value Based Mental Health Care.
Digital-only companies may face increased scrutiny, as research continues to show that human-to-human interaction is often essential for meaningful outcomes. Meanwhile, hybrid care models—blending in-person and virtual care—are expected to grow in popularity. Both patients and clinicians increasingly prefer flexibility, and hybrid models allow organizations to expand their reach, even in smaller cities and rural communities. Danish Qureshi, President and COO of LifeStance Health, notes that accommodating this shift is central to meeting patient and clinician needs while maintaining operational efficiency.
Workforce Challenges and Retention Strategies
One of the defining challenges for 2023 will be clinician recruitment and retention. Behavioral health organizations must recognize that clinicians are central to both care quality and business outcomes. As shortages persist, organizations that invest in career development, mentorship, and support systems will gain a competitive edge.
Thriveworks, for instance, emphasizes providing clinicians with opportunities to grow their skill sets, expand careers, and access the support they need, both professionally and personally. Organizations that fail to prioritize clinician well-being risk high turnover, reduced patient satisfaction, and ultimately diminished business performance.
The workforce challenge is compounded by economic factors, as layoffs and financial stress increase demand for mental health services while simultaneously limiting the pool of available talent. Organizations that can balance clinician support with operational efficiency will be better equipped to thrive in this environment and deliver high-quality Value Based Mental Health Care.
Affordability and Employer-Driven Mental Health Benefits
Rising labor costs, wage increases, and consolidation across the behavioral health sector are driving up the cost of health benefits. Jon Cohen, CEO of Talkspace, emphasizes that providers must find ways to deliver high-quality, affordable mental health care. Innovative pricing models that consider the entire benefits ecosystem and the patient journey will be critical to meeting client and consumer needs.
Employers are playing an increasingly significant role in providing mental health benefits. Ariela Safira, Founder and CEO of Real, notes that the pandemic shifted cultural expectations, with employees increasingly viewing mental health support as an employer responsibility. Organizations are responding by investing in proactive and preventative care, offering interventions earlier in the care journey to prevent crises, improve quality of life, and reduce long-term healthcare costs.
This focus on preventative care represents a shift away from reactive treatment models. By embedding mental health support into everyday life—whether through digital tools, workplace programs, or hybrid care—providers can deliver more comprehensive, accessible, and effective services that align with Value Based Mental Health Care principles.
Virtual Care and Inclusive Access
The pandemic permanently accelerated the adoption of virtual mental health services. Russ Glass, CEO of Headspace Health, highlights that even as patients return to in-person care, virtual modalities remain in high demand. These platforms allow providers to reach broader populations, deliver culturally competent content, and tailor care to individual experiences.
Ellie Mental Health, led by Erin Pash, is prioritizing accessibility and customer service across multiple care platforms. By focusing on clinician matching, short wait times, and flexible access through phone, app, web, or in-person options, providers can create a seamless and positive patient experience. This focus on service quality will become a key differentiator as the market grows and patient choice expands, supporting the broader adoption of Value Based Mental Health Care.
Addressing Mental Health During Economic Downturns
Economic uncertainty is not only a financial concern but also a mental health challenge. Anxiety, depression, and stress often increase when individuals face layoffs, reduced income, or the loss of health insurance. Sesh, a digital mental health provider, is tackling this problem by offering affordable access and initiatives like SeshCares, which provides free access to laid-off individuals for a year.
Organizations that prioritize accessibility and affordability can mitigate the mental health impact of economic downturns, ensuring that patients have the resources they need when they need them most. This approach also highlights the broader social responsibility of mental health providers to deliver Value Based Mental Health Care even in challenging economic times.
Defining Market Forces for 2023
Across the industry, several consistent themes are expected to define the behavioral health landscape in 2023:
- Growing patient demand versus limited clinician supply – Providers must adapt to increased demand without compromising care quality.
- Recessionary pressures favoring in-network providers – Cash-pay practices may face challenges as patients prioritize affordability.
- Hybrid care models – Patients and clinicians increasingly expect a combination of virtual and in-person care.
- Employer-driven mental health benefits – Employers are investing in proactive and preventative care for their workforce.
- Value-based care and measurable outcomes – Demonstrating tangible results will be essential for securing reimbursement and maintaining patient trust.
These forces highlight a common theme: mental health organizations that can adapt to economic pressures, invest in workforce development, embrace hybrid care models, and demonstrate measurable outcomes will be best positioned to succeed in 2023.
Conclusion: Adapting for Success in a Complex Environment
2023 will be a year of both challenge and opportunity for mental health providers. Economic uncertainty, staffing shortages, and heightened competition are creating a demanding environment, but the continued evolution of digital tools, hybrid care models, and employer-driven benefits provide pathways for growth and innovation.
Providers who focus on quality care, clinician support, affordability, and accessibility will not only survive but thrive. By embracing Value Based Mental Health Care, investing in workforce development, and meeting patients where they are—online, in-person, or via hybrid models—behavioral health organizations can deliver meaningful outcomes, improve patient experiences, and demonstrate their indispensable role in the broader healthcare ecosystem.
As executives across the industry have noted, the key to success lies in proving value, innovating thoughtfully, and putting the patient experience at the center of care. Organizations that do so will not only navigate the challenges of 2023 but also set the stage for a more resilient, effective, and patient-centered mental health system in the years to come.
