Denova Collaborative Health, a leading integrated care provider based in Phoenix, Arizona, is planning to expand its innovative Collaborative Care Model in Behavioral Health into two additional states by the end of 2025. Founded in 1982 as Bayless Integrated Healthcare, the organization has spent over four decades pioneering the integration of primary care and behavioral health services — a model it believes is crucial for truly effective and comprehensive patient care.
As the health care industry increasingly recognizes the need to treat the whole person, Denova’s Collaborative Care Model in Behavioral Health is proving to be a promising solution to long-standing challenges in behavioral health and primary care delivery. This expansion marks a new chapter for Denova as it aims to bring its proven model outside Arizona and adapt it to diverse payer environments and patient populations.
Why Integrated Care Matters: Treating Mind and Body Together
The idea behind Denova Collaborative Health’s approach is simple but transformative: you cannot effectively treat mental health without also addressing physical health — and vice versa.
“You can’t treat mental health if you’re not caring for your physical health as well,” says Graham Johnson, CEO of Denova Collaborative Health. “That’s the purpose behind integration. You need to take care of the body and mind, combined.”
This philosophy aligns with growing evidence that many physical illnesses are closely linked to behavioral health conditions, and untreated mental health issues can worsen chronic medical conditions. Yet historically, behavioral health and primary care have existed in silos, often forcing patients to navigate two separate systems.
Denova’s Collaborative Care Model in Behavioral Health breaks down those barriers, providing seamless access to psychiatric services, therapy, primary care, and case management under one coordinated care umbrella. This approach improves health outcomes, enhances patient satisfaction, and can reduce overall health care costs by addressing root causes holistically.
Arizona’s Medicaid Shift Paves the Way for Innovation
Arizona has been a fertile ground for Denova’s model thanks to key changes in the state’s Medicaid program. In 2018, Arizona ended the behavioral health carve-out in its Medicaid system — which previously separated behavioral health benefits from physical health coverage. Instead, the state required Medicaid plans to manage both behavioral and physical health benefits together.
This policy shift incentivized Medicaid plans to support integrated care and allowed innovative providers like Denova Collaborative Health to flourish by aligning reimbursement with whole-person care.
Since then, Denova has expanded to operate seven clinics across Arizona, providing integrated services to Medicaid members and other patient populations. This successful foundation will serve as a springboard for their planned growth into new states.
A Data-Driven, Measurement-Based Approach to Care
One of Denova Collaborative Health’s key differentiators is its use of measurement-based care. Rather than relying solely on subjective assessments, Denova employs standardized tools to quantify patients’ symptom severity and track progress throughout treatment.
George Orras, Denova’s Chief Clinical Officer, explains: “Therapy traditionally is a qualitative way of managing a patient. We’re now quantitative; we can measure the success of a patient from point of entry to discharge. We can tell if a patient’s illness or severity of illness is decreasing or increasing, then bring the team in as needed.”
This approach allows clinicians to tailor the intensity and type of care according to the patient’s current needs. For example, if symptoms worsen, care can be intensified quickly; if the patient is improving, treatment can be tapered appropriately. This continuous feedback loop helps optimize outcomes and ensures patients receive the right level of care at the right time.
Beyond improving clinical precision, measurement-based care supports utilization management — a critical factor for financial sustainability. By monitoring outcomes rigorously, Denova can demonstrate value to payers and adapt care efficiently.
Leading the Shift Toward Value-Based Care in Behavioral Health
Denova Collaborative Health’s integrated, outcomes-focused model aligns closely with the broader health care trend toward value-based care (VBC). VBC shifts the focus from volume of services delivered to the quality and effectiveness of care, rewarding providers who achieve better health outcomes at lower costs.
Johnson and Orras both emphasize that VBC and integrated care go hand in hand. The goal is to stabilize patients and improve health holistically rather than merely delivering more services.
However, Denova’s experience also highlights the challenges in adopting value-based care in behavioral health. Currently, most of Denova’s contracts remain fee-for-service, with only some having “upside potential” for shared savings. The company is actively negotiating with payers to create value-based contracts that fairly reimburse integrated care while managing costs.
Orras points out that many behavioral health providers struggle with the financial and operational demands of risk-sharing models. “Many providers cut services instead of effectively managing utilization, which leads to poorer outcomes,” he says. “That’s the wrong approach. We provide the services that get patients stable with whatever their condition might be. That’s what value-based care is all about.”
Another obstacle is the cultural divide between behavioral health and primary care clinicians, which can hinder integration efforts. Denova experienced this firsthand when it began implementing its Collaborative Care Model in Behavioral Health eight years ago.
“At one point, we had a medical doctor arguing with the psychologist, just yelling at each other,” Johnson recalls. “You’re treating the same patients; you have to get the right people who believe in the model.”
Building a truly collaborative culture requires time, patience, and leadership commitment. Over the years, Denova has worked diligently to harmonize its team and foster a shared mission of whole-person care.
The Patient Experience: Access and Convenience
One of the most tangible benefits for patients under Denova’s integrated model is improved access to care. Traditional outpatient mental health services often involve long wait times, forcing patients to delay treatment or manage fragmented care.
Denova emphasizes same- and next-day availability for both primary care and behavioral health services. If a patient comes in for a primary care visit and needs behavioral health support, Denova can provide therapy or psychiatric care immediately — without long referral delays.
“It’s a whole-person model that’s integrated and collaborative,” says Orras. “If you need primary care, we can get it for you the same day. If you need psych or you’re seeing a primary care physician, we get you in therapy right away.”
This coordinated, timely access improves engagement and adherence, ultimately leading to better outcomes.
Expansion Plans: Bringing Integrated Care to New States
Denova Collaborative Health has announced plans to expand into two new states by the end of 2025. The expansion will begin with virtual behavioral health services offered in partnership with primary care providers, followed potentially by the opening of physical clinics.
Johnson believes the Collaborative Care Model in Behavioral Health can thrive beyond Arizona, despite each state’s unique Medicaid programs and payer landscapes. However, success will require customizing payer partnerships and growth strategies based on local market dynamics.
Scaling the model nationwide will also depend on securing sufficient “bench strength” — the staffing capacity to deliver timely, comprehensive care — as well as reimbursement structures that support rapid access and integrated services.
While Medicaid will remain an important focus, Johnson notes that the Denova model may resonate particularly well with Medicare and commercial plans that manage both behavioral and physical health benefits. These plans are more likely to value and invest in integrated, whole-person care models.
Looking Ahead: A New Era of Collaborative Care
Denova Collaborative Health’s expansion is a promising sign that integrated, value-based care models are gaining momentum in behavioral health. By combining rigorous measurement, coordinated teams, and patient-centered access, Denova aims to set a new standard for treating complex mind-body health needs.
As the health care landscape continues to evolve, providers like Denova that can deliver effective, efficient, and compassionate integrated care will be well-positioned to improve outcomes and reduce costs — offering hope and healing for millions of patients nationwide.