Mental Health Partnership LLC, an Ames, Iowa-based outpatient mental health provider, has raised $5 million to fuel its outpatient mental health expansion strategy. The funding will support investments in technology, mergers and acquisitions, de novo expansions, and the addition of profitable services to individual practices. CEO and founder Scott Farber emphasized the company’s goal of creating an ecosystem of small therapy practices, particularly in underserved areas, addressing gaps in access to care while maintaining a financially sustainable model.
Since its first acquisition in 2020—Central Iowa Psychological Services—Mental Health Partnership has grown to operate around a dozen offices and four practices across Iowa, Idaho, and Texas. Notably, the company recently opened the OHM Mental Health Wellness Center in Lewiston, Idaho, and plans to launch a new practice near the military base in Fort Hood, Texas, called the Mindset Counseling Group. These Idaho and Texas locations mark the company’s first de novo expansions and are key components of its broader outpatient mental health expansion strategy.
Leveraging Technology to Enhance Outpatient Mental Health Expansion
A portion of the funding went toward acquiring a minority ownership stake in TheraManager LLC, a behavioral health technology provider. TheraManager offers integrated electronic health records, revenue cycle management, telehealth, and practice management tools designed specifically for behavioral health practices. Currently, about 1,000 practices and 7,000 providers utilize its platform.
Farber explained that incorporating technology is a crucial part of the outpatient mental health expansion model. Digital tools allow the company to measure patient outcomes more effectively, enhance billing processes, and improve practice margins. “You put together the acquisition strategy, you add in that technology overlay, and now you’ve got kind of a virtuous ecosystem that becomes self-reinforcing,” he said. Technology thus serves as both a care-enhancing and growth-enabling tool in the company’s expansion plans.
Expanding Services to Support Sustainable Growth
Mental Health Partnership focuses on acquiring smaller behavioral health providers with slim margins that are not fundamentally distressed—what Farber calls “mildly stressed assets.” To improve profitability and broaden services, the company adds offerings like esketamine treatments, transcranial magnetic stimulation (TMS), partial hospitalization programs (PHPs), intensive outpatient programs (IOPs), and comprehensive medication management.
These added services are a core part of the company’s outpatient mental health expansion strategy, enabling practices to provide more comprehensive care while boosting revenue. Integration with local hospitals, schools, jails, and other medical providers further strengthens the network, ensuring patients can access timely care even in underserved regions.
Investing in People and Leadership
The $5 million investment also helps the company cover provider salaries, expand its leadership team, and strategically acquire additional practices. Mental Health Partnership pays providers a salary with performance-based incentives, rather than per appointment, creating stability for both clinicians and patients. “Part of what we wanted to do was move towards a salary system with incentives above it,” Farber said, noting that such a system requires upfront funding but enhances long-term sustainability.
A Focused, Replicable Expansion Strategy
Looking ahead, Mental Health Partnership plans to continue a deliberate “land and expand” approach rather than pursuing rapid nationwide acquisitions. States such as Oregon, with psilocybin treatments coming online, and Colorado, are of particular interest. Farber emphasized that the company’s approach is not about building a massive platform but creating a sustainable and replicable model for outpatient mental health expansion that works in both urban and rural areas.
With nearly 48% of Americans living in regions designated as mental health professional shortage zones, the company’s focus on small, underserved communities underscores its commitment to improving access to care. Farber hopes to demonstrate that targeted outpatient mental health expansion can be both impactful and financially viable without the need for enormous capital infusions.
Redefining Mental Health Growth Models
Mental Health Partnership offers an alternative to large-scale consolidation strategies dominating the behavioral health sector. Farber stated, “How can we continue to think about being our brothers’ or sisters’ keepers if we’re saying that’s not attractive enough from a business model perspective? We want to be able to prove that this is [an attractive model] and that it is possible to do this.” By combining strategic acquisitions, new service lines, technology, and community partnerships, the company is creating a sustainable blueprint for outpatient mental health expansion that addresses gaps in care and prioritizes both patients and providers.
