Mental Health Leaders Forecast Integrated Care, Value-Based Models in 2025

After a relatively quiet 2024, executives expect to see some changes in the behavioral health industry next year.

For starters, M&A, which was relatively slow in 2024, is set to pick up as a new administration that many have dubbed more “business friendly” takes the reins. While this consolidation will likely look different from the dealmaking frenzy of 2021 and 2022, organizations have had time to mature and will have tried and true business models to bring to the table.

But this isn’t the only major change the industry can expect. The long-awaited move to value-based care could finally make its way into more contracts. This move could also catalyze more physical and behavioral health integration, as payers anticipate mental health could impact the total medical spending.

Behavioral Health Business reached out to leaders in the mental health space to get their take on what’s next for the industry.

---

“A key trend for 2025 that I am excited about is the integration of physical and mental health care, expanding advanced primary care models to include behavioral health services. This approach addresses the historically fragmented health care system, creating seamless, holistic care that improves outcomes and reduces costs. Milliman reports that integrated models can lower claims costs by 9–17% through better care coordination, reduced hospital readmissions, and more effective chronic disease management.”

 – Natalie Schneider, CEO, Fort Health

“As we enter 2025, I’m particularly looking forward to the growing adoption of new modalities for treating mental health, such as AI-powered therapists and Transcranial Magnetic Stimulation therapy. Telemental health companies will continue to think critically about what it will take to revolutionize care and innovation moving forward through dynamic and strategic integration, instead of iteration. However, with any emerging trend in innovation, there is a need for transparency, education, and management of the treatment implementation with guardrails. It’s important that these modalities are best used as part of an integrated system of support with human clinicians and guardrails to improve mental health care.”

– Julia Bernstein, COO, Brightside 

“There’s growing concern about issues like access, coverage, parity, and holistic care — especially as rates for services continue to be cut while the costs of health care and providers keep rising. These two trends are moving in opposite directions, which raises serious questions about sustainability.

Another ongoing challenge is the promise of value-based care. We’ve been talking about it for decades, and while some are genuinely trying to make it work, the reality is that multiple payers struggle to ingest the necessary data and truly reward value. If we’re going to remain a fee-for-service system, we should just commit to that, because proving value-based care is costly. If payers won’t reward it, what’s the point? It’s unfortunate because doing value-based care right could be transformative for the industry, but it requires real support to succeed.”

– Monika Roots, Co-Founder, President and Chief Medical Officer, Bend Health

“I hope to see an increased focus on supporting the mental health and wellbeing of dual-eligible individuals by eliminating rather than introducing barriers to care. I am hopeful that ahead of the Medicare-Medicaid Program sunset at the end of 2025, we’ll start to see a greater effort by plans to coordinate care and benefits across Medicare and Medicaid to make it easier for individuals on both plans to get access to the integrated mental, physical and social care services they need.”

– Ruby Mehta, Head of Behavioral Health, Cityblock

“In 2025, I’m looking forward to seeing behavioral health crisis care remain a key focus rather than just a passing trend. Sustained attention on behavioral health, particularly from health plans, is crucial, and I’m eager to see continued progress in developing innovative solutions that enhance access and care delivery. This ongoing dedication to addressing behavioral health needs will help drive meaningful, long-term improvements in the system.”

– Matt Miller, Chief Growth and Development Officer, Connections Health Solutions

“In 2025, I’m excited to see more payers embracing value-based care in behavioral health. It feels like this has been building for a while, but we started to see real momentum in 2024.

With behavioral health spending skyrocketing over the past four years, there’s a growing recognition that we need to figure out how to create real value from that spend — not just in behavioral health outcomes but also in terms of medical cost savings. I think we’ll see more value-oriented contracts and greater accountability for providers as payers push to ensure that increased spending translates into meaningful impact.”

 -Alex Katz, CEO and Founder, Two Chairs

“I anticipate dealmaking will pick up, particularly in the behavioral health space, as the market continues to perform and the regulatory environment becomes more favorable. Investors have spent the last four years understanding the behavioral health space in much greater detail and when combined with the environment I think it will result in a pickup in activity. Strategic, innovative partnerships and acquisitions will likely focus on integrating care models and expanding access.”

– Robert Krayn, Co-Founder and CEO, Talkiatry

“In 2025, I’m looking forward to the continued focus on integrated care models that emphasize collaboration among health care providers. This trend ensures patients receive comprehensive, coordinated care that addresses their mental and physical well-being. Additionally, advancements in data-driven insights will likely shape the way we design and deliver behavioral health programs.

“I anticipate an increase in dealmaking related to mergers and acquisitions in 2025. With improvements in capital markets, organizations will have greater access to funding, enabling them to expand their service offerings and geographic reach. This environment is fostering strategic partnerships and acquisitions, helping the industry meet the rising demand for behavioral health services while positioning for long-term growth.”

– Wayne Cavanaugh, CEO, Family Care Center

“One trend that excites me right now is our increasing ability to quantify the impact of our mental health solutions through ROI to employers. Through new methodologies and data, business leaders are able to recognize mental health care as a critical driver of business performance and personal well-being. More leaders are realizing that mental health programs are not just an employee perk, but they  lead to improved productivity, lower turnover and reduced health care costs, and ultimately healthier workplaces.”

– Karishma Patel Buford, Chief People Officer, Spring Health

“I’m excited to follow the continued shift toward personalization. We’re at a really exciting point in the mental health care industry where we finally have the insights and tools necessary to create a more member-driven experience, ensuring people at any acuity level can find the right care options – whether that be self-guided tools for subclinical support or meeting with a mental health coach. Not everyone needs (or is open to) therapy, so I think we’ll see more companies invest in subclinical innovations focused on helping “the worried well.” The continued integration of AI will take this even further, enabling us to offer tailored health care experiences to address a diverse set of needs and preferences, route individuals to the right care path, and scale access in a way that wasn’t previously possible.”

– Dr. Jenna Glover, Chief Clinical Officer, Headspace