Introduction:
Founded in 2017, Two Chairs initially focused on in-person therapy, believing it to be the most effective for behavioral health. However, the COVID-19 pandemic forced the company to adapt and shift towards remote therapy. This change has not only allowed Two Chairs to grow faster but has also helped address the shortage of mental health professionals in the United States.
The Shift to Remote Therapy:
When the pandemic hit, Two Chairs had to reevaluate its approach and embrace remote therapy. Utilizing a proprietary matching algorithm, the company could connect clients with therapists virtually. This shift has proven successful, with the majority of Two Chairs’ 500+ therapists now treating clients online. As a result, the company has experienced significant revenue growth, expanding eight-fold over the past three years.
Funding and Competition:
Two Chairs recently announced a $72 million Series C equity and debt financing round, led by Amplo and Fifth Down Capital. This brings their total funding to $103 million. The company’s ability to secure substantial funding reflects the growing demand for mental health services and the potential of remote therapy. Other therapy startups, such as Grow Therapy, have also raised significant funds, indicating a thriving market.
Differentiating Factors:
What sets Two Chairs apart from its competitors like Talkspace and BetterHelp is its employment of the majority of its therapists, rather than contracting with them. This allows the company to select and train therapists known for their high quality of care. Two Chairs also emphasizes the use of measurement-based care (MBC), which assesses patients’ progress against standard metrics. By incorporating MBC, therapists can potentially improve outcomes and reduce costs. However, only a small portion of therapists currently utilize this approach.
Addressing the Shortage of Mental Health Professionals:
The availability of remote therapy from independent clinicians, established institutions, and startups like Two Chairs has been instrumental in addressing the shortage of mental health professionals in the U.S. While digital platforms have made it easier to find a therapist, the challenge lies in finding the right therapist and high-quality care. Two Chairs aims to solve this problem by carefully selecting and training therapists, ensuring they provide exceptional care to meet the demand that still exceeds their capacity.
Future Plans:
With the new funding, Two Chairs plans to hire more therapists, expand into new states, and further enhance its technology. By investing in these areas, the company aims to continue providing affordable and accessible therapy services. Currently, Two Chairs offers its services at the cost of a co-pay for Aetna and Kaiser Permanente health insurance holders, while other individuals are charged $226 per session.
The Role of AI in Therapy:
While AI has made significant advancements in various fields, Alex Katz, the founder of Two Chairs, remains skeptical about its potential to replace mental health professionals. He emphasizes the human and emotionally driven nature of therapy, highlighting the importance of a skilled therapist’s presence in the room. While technology can enhance therapy services, it cannot fully replace the expertise and empathy that therapists provide.
Conclusion:
Two Chairs’ transition to remote therapy has allowed the company to expand its reach and address the shortage of mental health professionals. With its focus on employing high-quality therapists and utilizing measurement-based care, the company is committed to delivering exceptional care to its clients. As the demand for mental health services continues to rise, Two Chairs’ unique approach positions it as a leader in the industry, offering accessible and effective therapy services.