While many virtual mental health startups are stumbling under the weight of rising acquisition costs, clinician burnout, and unsustainable digital-only models, LifeStance Health continues to grow—and it’s not by accident. Thanks to the LifeStance Health hybrid model, the company has positioned itself as a leader in flexible, patient-centered behavioral health care. During its May 9 first-quarter earnings call, LifeStance executives laid out exactly why their approach is outperforming competitors and proving resilient in a rapidly evolving industry.
With nearly 5,000 employed clinicians, a national footprint across 32 states, and a business model that doesn’t rely heavily on digital marketing, LifeStance is doubling down on clinician satisfaction, continuity of care, and operational efficiency. In doing so, it’s proving that thoughtful, measured growth rooted in clinical relationships—not just tech infrastructure—is the key to long-term success in mental health care.
A Dual Approach to Care: The Power of the Hybrid Model
At the heart of LifeStance’s success is the LifeStance Health hybrid model, which gives patients the ability to receive care both in-person and through telehealth—often from the same trusted clinician. This flexibility meets the expectations of today’s mental health patients, who increasingly seek convenience without sacrificing continuity.
CEO and co-founder Michael Lester emphasized this during the earnings call, noting that 70% of patients prefer to see the same clinician across both settings, according to a Blue Cross Blue Shield of Massachusetts survey. “It’s clear that patients and clinicians want convenience, choice, and control,” said Lester. “And we’re uniquely positioned to deliver on those preferences due to our flexible hybrid model.”
The LifeStance Health hybrid model is already paying dividends. As of April, 79% of sessions were conducted via telehealth, but both company and payer forecasts indicate that utilization will stabilize closer to a 50/50 split. Importantly, LifeStance has rate parity with most payers, meaning it is compensated equally for virtual and in-person services—making it agnostic to how care is delivered and shielded from market fluctuations.
A Clinician-Centric Growth Strategy
Unlike many digital-only mental health providers who rely on contractors or freelance clinicians, LifeStance employs nearly all of its providers as W-2 employees. This enables the company to offer stability, benefits, and growth pathways that attract top-tier talent and encourage retention.
In Q1 2022 alone, LifeStance added 199 net new clinicians, pushing its total workforce to 4,989—an increase of 51% year-over-year. Strong clinician retention rates, which now hover near 80%, are helping LifeStance reduce costly turnover and maintain consistent care delivery. According to Jefferies Equity Research, the company needs to recruit around 1,000 clinicians annually just to maintain its base, and it’s already on track for a record-setting recruitment year.
The LifeStance Health hybrid model plays a direct role in recruitment and retention. Clinicians are drawn to the flexibility it provides, allowing them to treat patients from home or the office depending on their schedule and preference. In an industry where burnout is high, this level of autonomy helps create a more sustainable and satisfying work environment.
Growing Smart: Expansion Through Acquisitions and New Centers
Another pillar of LifeStance’s success is its well-balanced growth strategy. In Q1, the company completed two tuck-in acquisitions, bringing its total to 79, and opened 41 new outpatient centers. With over 500 locations now operating in 32 states, LifeStance is expanding with purpose.
However, the company isn’t growing blindly. CFO Michael Bruff noted during the call that LifeStance plans to scale back new center openings in the second half of the year to focus on improving profitability. This reflects the organization’s commitment to financial discipline—a strategy that complements the scalability of the LifeStance Health hybrid model.
With each acquisition and new location, LifeStance reinforces its ability to deliver high-quality care at scale without losing the local, relationship-driven focus that sets it apart. New clinicians joining through acquisitions are onboarded into a supportive system that emphasizes productivity, retention, and seamless integration into the hybrid framework.
Financials: Strong Revenue, Temporary Losses
In Q1, LifeStance reported revenue of $203.1 million, beating analyst expectations and reflecting a 42% year-over-year increase. However, the company also posted a net loss of $62.3 million, largely due to $59.9 million in stock-based compensation offered to retain clinicians. Though this appears significant, it represents a strategic investment in long-term workforce stability.
Adjusted EBITDA—a key measure of business performance—remained steady at $12.5 million, and the company reaffirmed its full-year guidance of $865–$885 million in revenue and $63–$67 million in adjusted EBITDA.
The LifeStance Health hybrid model contributes directly to these projections. As clinicians become more productive and hybrid usage stabilizes, the company expects both revenue and efficiency to increase. Moreover, with a strong focus on clinician training and support, the ramp-up time for new hires continues to improve, boosting earnings potential over time.
Avoiding the Pitfalls of Paid Digital Marketing
One of the most notable contrasts between LifeStance and its digital-only competitors is in how it acquires patients. Rather than relying on expensive keyword bidding and broad direct-to-consumer advertising, LifeStance draws patients through a mix of in-network insurance partnerships, primary care referrals, and organic online searches.
Chief Growth Officer Danish Qureshi noted that marketing expenses accounted for less than 2% of revenue in 2021, and the company is aiming for less than 1% in 2022. That’s a far cry from companies like Talkspace, which spent $101 million on marketing in 2021 alone.
This minimal ad spend is made possible by the LifeStance Health hybrid model, which builds lasting relationships through trusted referral channels and consistent care delivery. Patients aren’t churned in and out through marketing funnels—they’re retained through clinical trust and long-term provider relationships.
Standing Out in a Crowded Market
In a landscape filled with overhyped digital health startups and unsustainable business models, LifeStance Health stands out as a steady, focused, and scalable provider. The LifeStance Health hybrid model is more than a marketing term—it’s a clinical infrastructure that puts patients and clinicians first, adapts to changing care preferences, and supports both virtual and physical operations with equal strength.
With 5,000 clinicians, over 500 outpatient centers, and a footprint in 32 states, LifeStance is uniquely positioned to lead the future of behavioral health—while competitors struggle with rising costs and declining retention. The company’s commitment to long-term sustainability, clinician wellness, and patient outcomes is a refreshing contrast in an industry too often driven by growth-at-all-costs mentalities.
Final Thoughts: A Model Built for the Future
LifeStance Health’s leadership has made it clear: they’re not trying to follow the digital health hype cycle—they’re building a durable, scalable, and human-centered mental health organization. The LifeStance Health hybrid model is not just a competitive advantage; it’s the foundation of their operational strategy, clinician satisfaction, and patient care experience.
As more telehealth-only companies struggle to attract and retain both providers and patients, LifeStance is quietly proving that the best way forward isn’t either/or—it’s both. In-person and virtual. Growth and sustainability. Clinician support and patient access.
That balance is exactly why the LifeStance Health hybrid model is worth watching—and why the company’s momentum is likely to continue.
