The coronavirus pandemic has reshaped the behavioral health landscape, creating both challenges and opportunities for mental health care providers. While many organizations struggled to adapt, San Francisco-based Ginger has emerged as a standout example of resilience and growth. The digital behavioral health platform, which offers coaching, therapy, and psychiatry services via text and video, has seen a surge in demand that validates its virtual care model. By partnering with employers, health plans, and strategic partners, Ginger continues to expand access to mental health services across the country. Ginger’s business model proved uniquely positioned to meet the demands of a world navigating social distancing and lockdown measures. The COVID-19 pandemic accelerated the adoption of telehealth, driving higher engagement from users and increasing interest from prospective partners. According to CEO Russell Glass, Ginger’s strategy of leveraging technology to deliver scalable, high-quality mental health care has been reinforced during this unprecedented time. Telehealth and virtual behavioral health solutions have moved to the forefront of national attention, Glass said, emphasizing that Ginger’s platform is helping meet the urgent mental health needs created by the pandemic. Initially, Ginger partnered primarily with large employers, including Delta Air Lines, Domino’s, and Sephora. However, the pandemic opened new doors for collaboration with health plans and other strategic partners, further broadening the platform’s reach.
Series D Funding Fuels Expansion
Earlier in 2020, Ginger secured $50 million in Series D funding, bringing the company’s total funding to $120 million. Investors in this round included Cigna Ventures and Kaiser Permanente Ventures, demonstrating strong confidence in Ginger’s technology-driven approach. This funding is earmarked for three strategic priorities: research and development (R&D), expansion of strategic partnerships, and scaling employer-focused services. Glass highlighted that R&D efforts will focus heavily on artificial intelligence and machine learning. These technologies help predict the most effective care pathways for individual members, enabling coaches and clinicians to deliver personalized interventions at scale. Additionally, Ginger plans to expand self-care offerings, including digital content and activity cards, allowing members to engage in meaningful mental health activities outside traditional sessions.
Strategic Partnerships and Health Plan Growth
While employer-based services currently dominate Ginger’s business, Glass sees health plan partnerships as a major growth driver. He predicts that the portion of Ginger’s business coming from health plans could double or even triple by 2022. Health plan partnerships, such as those with Cigna, allow Ginger to extend its services beyond employer networks, providing cost-effective and efficient mental health care to a larger population. Expanding access through these partnerships is crucial for addressing the ongoing supply-and-demand gap in behavioral health care, a challenge that has long plagued the industry.
Addressing the Supply-and-Demand Gap
Ginger’s mission is to bridge the gap between growing demand for mental health services and the limited availability of providers. Traditional network-based approaches cannot meet this need alone, making technology-driven solutions essential. The pandemic underscored the importance of virtual mental health care. Increased stress, social isolation, and financial uncertainty fueled a surge in demand for behavioral health services. Ginger experienced notable growth in utilization: coaching sessions increased by 180% year-over-year in July, while therapy and psychiatry sessions grew by 364% compared to the previous year.
Balancing Growth with Quality of Care
Despite this surge in demand, Ginger has maintained a high standard of care. The company has scaled its workforce strategically, hiring additional therapists, psychiatrists, and coaches to meet growing needs. This careful scaling ensures that quality is not compromised as the platform grows. Glass also observed that the severity of mental health cases has increased during the pandemic, with more users requiring higher levels of care. Ginger’s flexible and scalable model allows the company to respond effectively to these evolving needs.
Short-Term and Long-Term Goals
In the short term, Ginger is focused on three key priorities: advancing R&D, expanding strategic partnerships, and enhancing services for employers. The company is particularly focused on making mental health resources accessible to small and medium-sized businesses, alongside its existing large-employer network. Long-term, Ginger envisions a world where mental health is no longer an obstacle to well-being or productivity. The company aims to deliver high-quality care at scale and low cost, leveraging technology to remove barriers to access. A critical part of this vision includes expanding services through public health programs like Medicare and Medicaid, ensuring broader availability for all populations.
Leveraging Technology for Scalable Care
Ginger’s platform uses AI and machine learning to optimize care pathways and support clinicians in delivering personalized treatment. By analyzing member data, the platform can identify the most effective interventions, improving outcomes and efficiency. Additionally, Ginger provides members with self-care tools that complement clinical services. These tools allow users to engage in activities that support mental wellness between sessions, creating a more holistic approach to behavioral health. This technology-driven approach positions Ginger to continue growing rapidly in a competitive and evolving landscape. By combining coaching, therapy, psychiatry, and AI-driven insights, the company can meet mental health needs at a larger scale without sacrificing quality.
The Role of Telehealth During the Pandemic
COVID-19 accelerated the adoption of telehealth across the behavioral health industry, and Ginger’s virtual care model was uniquely positioned to thrive. The pandemic normalized video and text-based mental health care, reducing stigma and increasing comfort with digital solutions. Glass believes that telehealth will remain a core part of behavioral health care post-pandemic. Many users who have experienced virtual care will continue to prefer it, making telehealth an essential and permanent component of Ginger’s services.
Preparing for Future Growth
Ginger’s leadership is committed to proactive growth strategies that include both internal development and mergers and acquisitions. The company has acquired several technology assets in recent years and plans to continue pursuing strategic acquisitions to strengthen its platform. These efforts aim to expand Ginger’s reach, enhance its service offerings, and fortify technological capabilities, enabling the company to scale efficiently while maintaining high-quality care.
Conclusion
Ginger’s experience during the COVID-19 pandemic highlights the power of a scalable, technology-driven approach to behavioral health care. By leveraging increased demand, strategic partnerships, and innovative AI-driven solutions, Ginger has expanded access to care while maintaining quality. With $120 million in funding and a clear focus on R&D, strategic partnerships, and employer services, Ginger is poised for rapid growth. CEO Russell Glass’s goal of doubling or tripling the health plan portion of the business by 2022 underscores the company’s ambition to reach more members and address the mental health care supply-and-demand gap. Ultimately, Ginger’s mission is to create a world where mental health is never an obstacle. By combining telehealth, AI-driven insights, and personalized care, Ginger is setting a new standard for accessible, scalable, and effective behavioral health services. The company’s growth trajectory, fueled by pandemic-driven demand and forward-thinking strategies, demonstrates that the future of behavioral health care will increasingly rely on virtual platforms, strategic partnerships, and technology-enabled delivery. This example illustrates how innovation, strong funding, and strategic vision can transform behavioral health care, ensuring more people receive the support they need when they need it most.
