Spring Health, a New York-based mental health startup, is rapidly advancing into the value-based care space by leveraging a robust technology platform, strategic leadership hires, and a strong focus on behavioral health outcomes data. As value-based care continues to gain momentum in healthcare, Spring Health’s approach places it at the forefront of delivering behavioral health services that emphasize efficiency, quality, and measurable results.
Todd Hill, a seasoned executive recently hired from Headspace as Spring Health’s senior vice president of payer strategy, shared insights on why the company’s focus on outcomes and reducing healthcare waste makes it a natural fit for value-based care arrangements. “Value-based care really presents this amazing opportunity for groups like Spring Health or anyone else who delivers care in a way that removes all the waste from the system,” Hill said in an interview with Behavioral Health Business. “It’s an opportunity for providers who can deliver care more efficiently while improving health outcomes across populations.”
Spring Health’s Growth and Market Position
Founded in 2016, Spring Health has quickly become a major player in the digital behavioral health industry. The company garnered significant attention after securing a $190 million Series C funding round led by Swedish growth investment firm Kinnevik, which valued the company at approximately $2 billion at the end of 2021. This capital infusion has allowed Spring Health to invest in cutting-edge technology and expand its footprint in the mental health market.
Leveraging Behavioral Health Outcomes Data to Drive Value
One of Spring Health’s key differentiators in the value-based care landscape is its ability to collect and leverage behavioral health outcomes data to prove cost savings and clinical effectiveness. Hill noted that Spring Health consistently achieves readmission rates that are industry-leading while doing so with fewer clinical sessions compared to traditional models. “That drives tremendous savings,” he said. This is especially important given the well-documented relationship between behavioral health comorbidities and increased costs in managing chronic conditions such as diabetes, heart disease, and more. By addressing mental health needs effectively, Spring Health helps reduce the overall total cost of care, which creates a compelling return on investment for payer partners.
Spring Health’s appetite for value-based care is reflected in its existing contracts, some of which already tie economics directly to total cost of care outcomes. “Given what we’re seeing in our outcomes, we have a very strong appetite for value-based care,” Hill said. “In fact, we already have one of our first agreements in place where economics is tied to total cost of care.”
The Role of Technology in Value-Based Care Success
Technology plays a critical role in enabling Spring Health’s success within value-based care models. Hill explained that one of the reasons value-based care struggled to gain traction in the early 1990s was the lack of advanced technology platforms capable of tracking outcomes and efficiently managing care delivery. Spring Health’s platform is designed to address those gaps by using data analytics and machine learning to identify providers with the best outcomes and align incentives accordingly.
“For instance, we employ aspects of value-based care within our own platform,” Hill said. “Our technology allows us to identify who our best providers are with the best outcomes and to structure incentives that compensate them appropriately for the value of care they deliver.” This approach ensures that clinicians are rewarded for quality and efficiency, not just volume of care.
Despite the heavy reliance on technology, Spring Health emphasizes that its platform is intended to support—not replace—the clinician-patient relationship, which remains central to effective mental health treatment. “While the data underpinning the platform is essential and allows us to deliver on our mission, we really see technology in a supportive role,” Hill said. “It does not replace that all-important clinician-patient relationship.”
Matching Value-Based Care to Payer Readiness
However, Spring Health also acknowledges that value-based care is not a one-size-fits-all model, especially when it comes to payer partnerships. The company carefully evaluates each payer’s readiness and appetite for value-based arrangements, understanding that some payers are more prepared than others to engage in these innovative reimbursement structures.
“It’s been my experience that some payers are much more ready for a value-based arrangement than others,” Hill explained. “We view it as an important tool that depends on the level of readiness and appetite from the payer side.” This measured approach allows Spring Health to tailor its partnerships and expand value-based care adoption strategically.
Spring Health’s use of comprehensive behavioral health outcomes data allows it to demonstrate measurable improvements and cost reductions, making its case compelling for payers looking to implement or expand value-based care initiatives. By continuously refining its platform and clinical approaches based on this data, Spring Health can sustain and grow its impact on mental health care delivery.
Looking Ahead: A Blueprint for Value-Based Behavioral Health Care
Looking forward, Spring Health’s combination of leadership expertise, data-driven technology, and outcomes-focused care positions it well to lead the charge in transforming behavioral health delivery. By continuing to align incentives around value, the company aims to improve patient outcomes, reduce wasteful spending, and help payers manage total cost of care more effectively.
As the healthcare industry increasingly embraces value-based models, Spring Health’s innovative platform and thoughtful approach to payer partnerships provide a promising blueprint for how digital mental health companies can thrive while delivering meaningful impact through robust behavioral health outcomes data.
If you want to stay updated on Spring Health’s progress and the latest in value-based care innovation, keep an eye on developments from this fast-growing digital health leader. Their work is shaping the future of behavioral health delivery and setting new standards for what value-based care can achieve.
