Everside Health to Deepen Mental Health Offering After $164M Funding Round

Everside Health will use its new $164 million in venture capital to deepen its mental health offering.

The Denver-based direct primary care provider already included mental health services in its model. But following the investment, Everside Health CEO Chris Miller said the company will “embed additional mental health professionals into our health centers.”

“Limited access to quality primary care in the U.S. has compounded chronic conditions, exacerbated mental health problems and increased healthcare costs,” Miller said in a news release.

However, Everside Health did not detail its mental health plans. It has not yet responded to a Behavioral Health Business request for comment. 

Everside Health announced the funding round on Monday. Investors in this round include New Enterprise Associates Inc., Oak HC/FT, Alta Partners and Endeavor Catalyst along with eight other new investors.

Oak HC/FT has also invested in the startups Brightline, CareBridge and Circulo, according to previous BHB coverage.

In August 2018, Everside Health raised $165 million under its previous name, Paldina Health. Paladina Health acquired fellow direct primary care companies Activate Healthcare and Healthstat in October 2020 and changed its name to Everside Health in November 2020. A year ago, it acquired R-Health

The investment will fuel the de novo center growth, potential M&A activity, further tech developments, and the hiring of additional specialist providers, the release states.

In short, direct primary care providers offer clinicians a subscription revenue model as opposed to the typical fee-for-service model. These providers typically contract directly with patients or employers to offer some predefined set of services. Often, this is done with the exclusion of health plans for most services the direct primary care provider offers.

The advocacy group Direct Primary Care Coalition states that about 1,600 direct primary care practices operate in 48 states. The coalition itself has 377 member practices, according to its website.

“Continued investment from NEA, Oak HC/FT and Alta Partners – and participation from our new investors – is a strong endorsement of our work to deliver high-quality, affordable and accessible healthcare,” Miller said.

Everside Health typically serves employer, union and other benefit sponsor clients. It operates over 375 health centers in 34 states.

The company also employs a value-based care model focused on keeping patients active, healthy and out of the emergency room, the release states.

Everside Health helps organizations save an average of 17% on claims costs by the third year of engagement and 31% by the fifth year, according to the release.