Alma, a membership-based network that assists independent mental health care providers in accepting insurance and establishing private practices, has raised $130 million in Series D funding. Thoma Bravo led the round, which included Cigna Ventures, Insight Partners, Optum Ventures, Primary Venture Partners, Sound Ventures, and Tusk Venture Partners.
Alma has now raised a total of $220 million in response to skyrocketing demand for therapists and mental health services. Alma claims that it assists providers in meeting the rising demand for mental health care by providing them with the support and infrastructure required to accept insurance and run their small businesses.
Over the last year, the company has tripled its network to 8,000 licensed mental health providers across all 50 states. When providers join Alma, they gain access to insurance support, telepathy software, automated billing and scheduling tools, and a clinical community that meets for education, training, and events.
“Alma’s unique provider-first approach to mental health care allows providers to deliver high-quality patient care while making it as easy as possible for them to start and grow their practices. Alma is providing tremendous value to key ecosystem participants: increased access for patients, insurance and billing support for providers, and valuable, diverse networks for payers,” said Ross Devor, a Partner at Thoma Bravo.
Alma has made mental health insurance more acceptable
The COVID-19 pandemic has exacerbated mental health conditions such as stress, anxiety, and depression, and there is a high demand for therapists. Due to the administrative burdens of dealing with health plans, mental health professionals in the United States refuse to accept insurance. On top of that, there has been a long-standing shortage of mental health professionals.
According to a survey conducted by the California Association of Marriage and Family Therapists, 42 percent of therapists in the state do not accept insurance. According to a 2019 report from consulting firm Milliman, office visits to mental health providers are more than five times more likely to be out of network than visits to primary care providers.
Ritter, a physician by training, founded Alma in 2017, intending to simplify access to high-quality, affordable mental health care by providing providers with the tools they need to build thriving in-network private practices.
“By centering therapists at the forefront, Alma is creating a sustainable business model that helps providers accept insurance, grow their private practice, and reach more people seeking care. Over the past year, we scaled our services to offer in-network mental health care in all 50 U.S. states, helping people find much-needed care during their greatest moments of need,” said Dr. Harry Ritter, CEO of Alma.