In May 2023, Mindpath Health, one of the largest outpatient mental health providers in the U.S., named Stephen Farber as its new CEO. Farber, who succeeded Chris Brengard—who transitioned to a board chairman position—has stepped into a pivotal role during a critical phase of growth and integration for the company. Under Farber’s leadership, Mindpath Health is shifting focus toward integrating its diverse, multi-state operations into a more cohesive whole, creating a stronger, more unified organization that can handle both its current needs and future expansion goals.
With a background spanning financial leadership in some of the largest health care organizations, including Kindred Healthcare (now Scion Health) and MEDNAX, Farber’s approach to running Mindpath Health represents a balance between refining the internal structure and pursuing further strategic growth.
The M&A-Driven Growth of Mindpath Health
Mindpath Health’s origins trace back to the merger of two outpatient mental health providers: Mindpath Care Centers and Community Psychiatry. Mindpath Care Centers primarily operated along the Southeast Coast, while Community Psychiatry had a strong presence on the West Coast, particularly in California. This strategic merger, completed in May 2021, positioned the company to extend its reach across multiple states, providing a broad footprint that spanned from Arizona and California to Florida and Texas.
The merger wasn’t just about geographical expansion—it was also about establishing a more robust platform that could offer a full suite of mental health services. Now, Mindpath Health has become a significant player in the outpatient mental health space, with 98 locations and over 1,200 employees, nearly half of whom are clinicians. Backed by the Los Angeles-based private equity firm Leonard Green & Partners, the company has capitalized on the growing demand for mental health services in the U.S.
However, as with any ambitious growth strategy, scaling operations and consolidating disparate entities presents its own set of challenges. This is where Farber’s leadership comes into play. While the company has successfully expanded, Farber recognizes that the next step is to integrate these various components into a more unified organization.
Farber’s Focus on Organizational Integration
As Farber took the reins at Mindpath Health, his primary focus has been on internal integration. Rather than aggressively pursuing further mergers and acquisitions, Farber has opted for a more methodical approach to growth. He describes this phase as a “normal phase 2” for the business, where the goal is to bring together the diverse facets of the company into a more cohesive whole.
“It’s a very normal phase 2 of putting together a business where we are a multi-state medical group,” Farber told Behavioral Health Business in an interview. “We very much think of ourselves as a medical group.”
This mindset reflects Farber’s belief that the company must first focus on optimizing what it already has. Integration is crucial to ensure that Mindpath Health can operate as a unified entity, with aligned goals, processes, and cultures across its multi-state operations. Farber’s leadership experience in managing complex, multi-state health care organizations has provided him with the skills needed to navigate this challenging phase. His work at companies like Kindred Healthcare and MEDNAX involved aligning diverse business lines and operational models under one umbrella, a task he believes is particularly relevant to Mindpath Health as it moves forward.
Farber emphasizes that creating a strong, integrated company will not only improve operational efficiency but also enhance clinician satisfaction. Clinicians at Mindpath Health, Farber notes, view the organization as a medical group rather than a collection of individual practices. This sense of community is essential for retention and satisfaction, and it is one of the reasons why Farber is determined to grow the company in a deliberate, stepwise manner.
A New Era of Telehealth and In-Person Services
As part of its growth and modernization strategy, Mindpath Health has made significant strides in integrating telehealth into its offerings. In fact, approximately three-quarters of Mindpath Health’s visits are conducted via telehealth, reflecting the growing demand for remote mental health care, particularly after the onset of the COVID-19 pandemic. With 98 locations across six states—Arizona, California, Florida, North Carolina, South Carolina, and Texas—the company provides both in-person and virtual services, which sets it apart from other providers that offer only virtual services.
Farber sees telehealth as a key part of the company’s future, but he also acknowledges the importance of in-person care. While telehealth has proven to be an invaluable tool in expanding access to mental health services, particularly for those in rural or underserved areas, there are still patients who prefer in-person visits, especially for certain types of care, such as psychiatry.
The balance between telehealth and in-person services has also influenced Mindpath Health’s growth strategy. As Farber pointed out, the demand for in-person services varies by geography, treatment type, and patient preferences. Some patients receiving psychiatric care closer to major urban centers are increasingly seeking in-person treatment, whereas those in more remote areas are often more inclined to use telehealth options. This flexibility in service delivery has allowed Mindpath Health to cater to a broader patient base, enhancing its overall service offering.
The Broader Mental Health Landscape
Mindpath Health’s approach to integrating telehealth and in-person services aligns with broader trends in the mental health industry. According to a RAND Corp. study, commercial health plan spending on mental health services increased by 54% in the post-COVID phase, with telehealth utilization playing a key role in driving this growth. However, the increased demand for telehealth has led to concerns about reimbursement rates, as some insurers, such as Aetna, have started to cut back on telehealth reimbursements for certain services.
Despite these challenges, Farber remains optimistic about the future of telehealth and its role in Mindpath Health’s operations. He views the company’s ability to offer both virtual and in-person care as a key differentiator in an increasingly competitive market.
Methodical, Balanced Growth: The Road Ahead
While Mindpath Health’s past growth was driven in part by mergers and acquisitions, Farber has made it clear that future growth will be more measured and focused on consolidating its existing operations. The company has significant opportunities in its current markets, particularly in Arizona, Florida, and Texas, where it is still in the earlier stages of development. Farber is committed to growing these markets in a way that is both balanced and paced, ensuring that the company can continue to scale effectively while maintaining its commitment to high-quality patient care and clinician satisfaction.
This focus on methodical growth also reflects Farber’s broader vision for Mindpath Health as a multi-state medical group. By integrating the various elements of the organization and aligning them around a common mission, Farber believes that Mindpath Health will be better positioned to meet the challenges of the rapidly evolving mental health care landscape.
Looking Forward
Stephen Farber’s leadership marks a critical turning point for Mindpath Health. With the company now poised to focus on internal integration and methodical growth, Farber’s vision of creating a unified, efficient, and patient-centered organization is beginning to take shape. As the mental health care landscape continues to evolve, Mindpath Health’s ability to adapt, integrate, and deliver high-quality care will be key to its long-term success. Under Farber’s guidance, the company appears well-positioned to navigate this next phase of growth, providing a solid foundation for the future of outpatient mental health care.
