In the ever-evolving landscape of healthcare, the shift from fee-for-service models to value-based care has become a central focus for many providers. For LifeStance Health (Nasdaq: LFST), a leading outpatient mental health provider, forging strong relationships with primary care providers is a cornerstone of its strategy to deliver value-based care. While the transition may be gradual, the company is laying the groundwork to integrate mental and physical health care, proving the value of behavioral health in improving overall patient outcomes.
The Slow but Steady Shift to Value-Based Care
At the recent Morgan Stanley Healthcare Conference, LifeStance CEO Ken Burdick emphasized that the move toward value-based care in mental health is still in its early stages. Drawing parallels to the physical health space, where the transition has been slow and challenging, Burdick acknowledged that mental health care is lagging behind.
“Value-based care is a slow trend. It was slow in the physical health space, and it’s certainly lagging behind in the mental health space,” Burdick said. “Having spent decades on the physical side, it was always so obvious, but moving from fee-for-service to pay-for-value has been difficult. I think that’s where we need to get to with mental health.”
Founded in 2017, LifeStance operates in 34 states with over 600 care centers, offering both virtual and in-person outpatient mental health services for children, adolescents, and adults. The company’s vision is to demonstrate the profound impact of behavioral health on physical well-being, ultimately reducing the total cost of care.
The Role of Primary Care Partnerships
One of the first steps toward value-based care, according to Burdick, is building strong relationships with primary care providers. These partnerships are essential for conducting studies that highlight the interconnectedness of mental and physical health. Traditional metrics like the PHQ-9 for depression and the GAD-7 for anxiety have been useful, but Burdick believes there are more meaningful ways to measure the value of behavioral health interventions.
For example, tracking metrics such as school attendance, emergency room usage, and the frequency of primary care visits could provide a clearer picture of how mental health care improves overall well-being.
“It’s going to take a level of collaboration that hasn’t really existed between people focused on emotional well-being and those focused on physical well-being,” Burdick explained. “We need to do sufficient studies, ensure proper attribution, and gather significant data to support the hypothesis that integrated care reduces total healthcare costs.”
Burdick projects that it will take three to five years for value-based contracting in behavioral health to gain traction. However, he remains confident in the potential of behavioral health companies to demonstrate their value in improving holistic health outcomes.
Proving the Value of Integrated Care
For LifeStance, the ultimate goal is to prove that effectively managing both physical and emotional well-being leads to a reduction in the total cost of care. “The holy grail for me would be when we can do enough work with the physical side of healthcare to demonstrate that integrated care lowers costs,” Burdick said. “I have no doubt in my mind that it’s true. But now we have to prove it. And that’s going to take a while.”
To achieve this, LifeStance is actively building relationships with physical health providers. These collaborations often take the form of referral partnerships, such as the company’s recent collaboration with Gennev, a women’s health provider focused on menopause care. This partnership aims to integrate behavioral health services for individuals experiencing menopause, addressing both their physical and emotional needs.
LifeStance has also teamed up with U.S. Renal Care to create a referral partnership for patients with kidney disease, who often face significant mental health challenges. According to Burdick, these partnerships are carefully chosen to target populations with a strong combination of physical and mental health needs.
A Holistic Approach to Patient Care
LifeStance Chief Medical Officer Dr. Anisha Patel-Dunn highlighted the importance of these collaborations in delivering holistic care. “Partnering with primary care providers allows us to help our patients in a much more comprehensive way,” she said. “It’s a step toward true integration of behavioral health and primary care.”
As LifeStance continues to expand its network of partnerships, the company is committed to gathering the data and evidence needed to support the value of integrated care. While the transition to value-based care may be slow, the groundwork being laid today will pave the way for a future where mental and physical health are treated as inseparable components of overall well-being.
The Importance of Measurement-Based Outcomes
A critical component of LifeStance’s strategy is the use of measurement-based outcomes to track the effectiveness of its interventions. Traditional tools like the PHQ-9 and GAD-7 have been staples in behavioral health, but Burdick believes that more nuanced metrics are needed to fully capture the impact of mental health care on physical health.
For instance, tracking a patient’s school attendance can provide insights into how mental health treatment is improving their ability to function in daily life. Similarly, monitoring emergency room visits can reveal whether behavioral health interventions are reducing the need for acute care. These metrics not only demonstrate the value of mental health services but also help build a stronger case for value-based care agreements.
“It’s about having the rigor to do the study, having the scale to produce statistically significant data, and demonstrating the value of what we do,” Burdick said. “I’ve seen it so much in managing both Medicaid and Medicare populations. It’s just a matter of applying that same rigor to behavioral health.”
The Challenges of Transitioning to Value-Based Care
While the benefits of value-based care are clear, the transition is not without its challenges. One of the biggest hurdles is the lack of integration between mental and physical health care systems. Historically, these two fields have operated in silos, with limited communication and collaboration between providers.
Burdick emphasized that breaking down these barriers will require a cultural shift within the healthcare industry. “It’s going to take a level of collaboration that hasn’t really existed before,” he said. “We need to bring together the people focused on emotional well-being and those focused on physical well-being. It’s about creating a unified approach to patient care.”
Another challenge is the need for robust data collection and analysis. To prove the value of integrated care, LifeStance must gather and analyze large amounts of data from diverse patient populations. This requires significant investment in technology and infrastructure, as well as a commitment to transparency and accountability.
The Future of Behavioral Health Care
Despite these challenges, Burdick is optimistic about the future of behavioral health care. He believes that as more data becomes available, payers and providers will increasingly recognize the value of integrating mental and physical health services.
“The holy grail for me would be when we can do enough work with the physical side of healthcare to demonstrate that when you’re effectively managing both the physical and the emotional well-being, there is a reduction in total cost of care,” Burdick said. “I have no doubt in my mind that it’s true. But now we have to prove it. And that’s going to take a while.”
In the meantime, LifeStance is focused on building the foundation for value-based care through strategic partnerships, rigorous data collection, and a commitment to holistic patient care. By fostering collaboration between mental and physical health providers, the company is working to create a healthcare system that treats the whole person, not just their symptoms.
Expanding Partnerships and Innovations
LifeStance’s efforts to integrate care extend beyond its partnerships with primary care providers. The company is also exploring innovative ways to deliver mental health services, such as telehealth and digital health tools. These technologies not only increase access to care but also provide new opportunities for data collection and analysis.
For example, LifeStance’s collaboration with Gennev focuses on providing integrated care for women experiencing menopause, a life stage often accompanied by significant mental health challenges. By combining behavioral health services with specialized women’s health care, LifeStance aims to address the unique needs of this population.
Similarly, the partnership with U.S. Renal Care targets patients with kidney disease, who often struggle with depression, anxiety, and other mental health issues. By integrating mental health services into their care plans, LifeStance hopes to improve both their emotional well-being and their physical health outcomes.
A Vision for the Future
As LifeStance continues to expand its network of partnerships and refine its approach to value-based care, the company is guided by a clear vision: to create a healthcare system that recognizes the intrinsic connection between mental and physical health.
“We’re trying to find those partners where the patients that they are seeing have a really strong combination of physical and mental health needs,” Burdick said. “By working together, we can provide more holistic care and demonstrate the value of integrated services.”
While the journey toward value-based care in behavioral health may be slow, LifeStance is committed to leading the way. By fostering collaboration, investing in data-driven solutions, and prioritizing patient-centered care, the company is laying the groundwork for a future where mental health is treated as an essential component of overall health.
Conclusion
The transition to value-based care in behavioral health is a complex and challenging process, but it is also an opportunity to transform the way we think about mental health. LifeStance Health is at the forefront of this movement, building the partnerships, tools, and evidence needed to prove the value of integrated care.
As Ken Burdick aptly put it, “It’s just a matter of having the rigor to do the study, having the scale to produce statistically significant data, and demonstrating the value of what we do.” With its strategic approach and unwavering commitment to patient care, LifeStance is well-positioned to shape the future of mental health care—one relationship, one study, and one patient at a time.
