Brave Health will bring mental health services to more Medicaid patients after raising $40 million in series C funding round led by venture capital firm Town Hall Ventures.
The Miami company, a telehealth provider focused on serving Medicaid populations, will use the new capital to build the technology and data infrastructure needed to power its service. Brave Health is the first venture to receive an investment from Town Hall Venture's new $350 million fund dedicated to supporting health care access in underserved communities.
The startup offers virtual outpatient services for mental health and addiction treatments, an alternative to traditional in-person services that can be difficult for some populations to access. Only one-third of psychiatrists accept Medicaid, a government program that provides coverage to low-income individuals and family, according to JAMA Psychiatry. As a result, there aren't enough mental health care providers to serve the estimated 75 million Americans covered by Medicaid.
"Innovation in Medicaid care delivery and reimbursement models is critical for our health care system," said Anna Lindow, co-founder and CEO of Brave Health."We're energized by the enthusiasm from our forward-looking investors and health plan partners around this aim."
Brave Health works with Medicaid case managers and health plans to provide virtual treatment alternatives that can lower the overall cost of care.
More than 23,000 people have been referred to the telehealth provider for care in 2022. Brave Health reports it can connect patients with mental health care appointments as soon as the first day they sign up, far less than the national average of 48 days. From there, it connects users with a team of therapists, psychiatric providers and peer support specialists to drive better short- and long-term outcomes and cut costs by reducing preventable hospitalizations.
"The team at Brave Health has demonstrated a commitment to doing the hard work of engaging the most vulnerable populations at their most vulnerable moments and getting them into ongoing care," said Andy Slavitt, general partner, Town Hall Ventures.
Founded in 2019, Brave Health is now backed by $60 million in investor capital. The company covers about 65 million Medicaid patients across 18 states, including Florida, New York and Texas.
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