Mindpath Health to Leave Ohio, Lay Off Workers as Part of Restructuring

Hybrid mental health company Mindpath Health will close its offices in Ohio and lay off an undisclosed number of employees.

The Denver-based company announced the move internally on Jan. 17, describing the measure as an “organizational restructuring.” A Mindpath Health representative declined to confirm the number of roles impacted. 

“This decision is typical of other recent announcements by other providers and is not indicative of a business pivot,” the representative told Behavioral Health Business. “Rather, this decision highlights industry-wide challenges Mindpath Health and other mental health organizations are experiencing, and the current economic conditions.”

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Mindpath Health lists two offices each in Cleveland and Columbus. In total, it lists 95 locations on its website.

The company offers telehealth and in-person services. These include therapy, psychiatry, on-demand services in certain states and transcranial magnetic stimulation. It also lists locations in Arizona, California, Florida, Minnesota, North Carolina, South Carolina and Texas on its website.

Mindpath Health is one of many behavioral health operators laying off staff and reorganizing their business.

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In December, four behavioral health companies announced that layoffs would impact dozens of roles as they prepare for new economic challenges.

More recently, news broke that the multi-state addiction treatment provider Delphi Behavioral Health and the tech-heavy, venture capital-backed mental health provider Mindstrong are shutting down.

The private equity firms Centerbridge Partners and Leonard Green & Partners acquired Mindpath Health’s predecessor — Sacramento-based Community Psychiatry — in December 2020. It became Mindpath Health after it merged with Durham, North Carolina-based MindPath Care Centers in May 2021, creating a bi-costal company that emphasized telehealth.

Since then, Mindpath Health has been playing the part of a platform company looking to scale nationally. Soon after the merger, it rolled out a plan to grow via de novo expansion and M&A.

Despite heavy utilization of telehealth — ranging between 80% and 90% during the early days of the pandemic — the company didn’t see a need to pull back on its office expansion strategy. According to a Mindpath Health C-suite member, that strategy accounted for patients “toggling” between in-person and telehealth care.

As of April 2022, Mindpath Health had “dozens” of new clinics in the process of opening, according to previous reporting from Behavioral Health Business

Mindpath Health has expanded into niche mental health services. It acquired the college student-focused mental health provider Acacia Counseling in June 2022.

In 2022, about 10% of Mindpath Health’s patient visits across the company were conducted in person with variability within specific services and locations.

“For example, a larger percentage of our Mindpath College Health patients choose in-person care,” the Mindpath representative told BHB.

The company is committed to the hybrid strategy, as it is “part of our commitment to meeting patients where they are in their mental health journey, online or in-person.” It will also invest more in technology to make the company more efficient, the Mindpath Health representative said.

However, Mindpath Health may be prepped to evolve its strategy beyond set appointments with clinicians.

In August 2022, it released a whitepaper detailing the relative success of on-demand telehealth services in a North Carolina-based pilot program. The Mindpath website states that on-demand services are available in North Carolina and California.

It has also made moves to acquire the virtual mental health company Talkspace Inc. (Nasdaq: TALK), according to other media reports. Such a move would give Mindpath Health access to a massive direct-to-consumer mental health business, the underlying tech stack and an expanding enterprise-focused business.

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