Behavioral Health: The Massive ROI Behind Unlocking Happiness
-
May 13, 2025
-
This article is part of our four-part series on building a better healthcare system. Explore the other parts of the series: Building a Better Healthcare System: Continuing Trends, A Different Lens, Senior Care: Rethinking the Age-Old Problem, a $349B Opportunity, Women’s Health: Unlocking Immense ROI for the Predominant Healthcare Decision-Maker.
Despite a decade of increased media attention and regulatory reforms aimed at improving access and patient experience, the fundamental challenges in U.S. behavioral health remain largely unchanged. In fact, more than one-fifth of all U.S adults had a mental illness in 2023.1 By 2026, 25% of Americans will need behavioral health treatment.2 Although progress towards destigmatization has been positive post-pandemic, 55% of adults with a mental illness have not received treatment.3 Several factors drive the lack of treatment, including the fact that more than 50% of Americans still reside in a Mental Health Professional Shortage Area (“HPSA”) as of December 2023.4
While behavioral health challenges are on the rise across the board, the vulnerable population is at a particular disadvantage.
- The behavioral health scenario is particularly grave for youth and adolescents, with one in five children in the United States having a diagnosable mental health disorder.5 From 2007 to 2021, suicide deaths increased 62% in the 10-24 age group.6
- 16% of people living below the poverty line had depression, compared with 3.5% of adults at or above 400% of the federal poverty line.7
- Multiracial adults aged 18 or older were more likely than adults in most other racial or ethnic groups to have any mental illness (AMI), serious mental illness (SMI) or serious thoughts of suicide.8
- Women are two times more likely to be diagnosed with depression than men.9
With a market value of $185 billion, the behavioral health landscape is projected to expand at a 6.7% CAGR through 2034, driven by increasing demand for mental health services, evolving care delivery models and regulatory advancements.10 At the same time, access to care and the clinician shortage continue to create barriers to treatment. Now, more than ever, it is critical to innovate behavioral health solutions for a better future for all.
The Behavioral Health Dilemma: Growing Demand, Constrained Resources
Four key challenges prevent scalable impact in Behavioral Health:
- Disconnected and Siloed Care Model: Fragmented care pathways and patient data results in siloed care and ineffective long-term treatment. Lack of whole-person care and comprehensive data often obscure other underlying factors that contribute to or drive behavioral health challenges.
- Shortage of Experts and Content: A growing shortage of behavioral health clinicians as well as limited and complex content prevent timely and effective access to care.
- Inadequate Coverage: Minimal coverage for high-quality and preventative behavioral health services creates financial barriers that inhibit individuals from accessing care and proactively mitigating high-acuity episodes.
- Underlying Cultural Stigma: Cultural stigma driven by fear of judgment, cultural taboos and misconceptions about care discourage many from seeking help.
In order to transform behavioral health to make a valuable, lasting impact on the population, there must be a shift from the current siloed care delivery to a full ecosystem model delivering comprehensive care at an individualized level. At this stage in maturity, behavioral healthcare shifts its characteristics to being:
- Systematic — fully integrated into every facet of the healthcare system, with all routine providers trained to recognize key indicators. Care models evolve to incorporate alternative treatments and expanded workforce models (e.g., non-clinical and peer networks) increasing workforce capacity, enhancing quality and improving access for all individuals.
- Holistic — rooted in a whole-body approach that incorporates all relevant factors (diet, exercise, environmental factors, financial health, SDOH, etc.) and utilizing an integrated care model requiring collaboration across specialties.
- Personalized — precision medicine is the primary mode for care delivery, with providers building highly tailored care plans and implementing targeted interventions.
Reimagining Behavioral Health Through the 5 Cs of the Healthcare Consumer Experience
At FTI Consulting, we believe that the key to transforming the future of behavioral health lies in creating the optimal experience across the five key dimensions of the healthcare consumer experience: care, compassion, convenience, content and cost. Through collaboration with ecosystem players, we envision a reimagined behavioral healthcare system in which:
- Care: Seamless collaboration among specialists and integration across the healthcare system ensure holistic, data-driven care, with trained providers across specialties serving as key touchpoints for early identification and intervention.
- Compassion: Destigmatization of behavioral health creates a safe, inclusive environment in which patients feel encouraged and supported to seek treatment. Trauma-informed and culturally competent providers are the norm. Dynamic patient–provider matching approaches encourage patient trust while driving personalized treatment plans.
- Convenience: A robust digital front door, peer support networks, hybrid care models and services seamlessly integrated into schools, workplaces and communities make access undeniable. AI-driven virtual and in-person solutions enable personalized, scalable support, especially in underserved areas.
- Content: Access to the latest behavioral health research (alternative treatments and root causes) with multilingual resources is commonplace, empowering informed decision making.
- Cost: Expanded insurance coverage, employer-funded programs and public investment make behavioral healthcare more affordable, reducing reliance on self-pay. Value-based care models align payments with outcomes, improving access, collaboration and cost efficiency.
A Whole-Ecosystem Effort to Drive Sustainable Impact in Behavioral Health
Realizing this vision requires a coordinated effort across the behavioral health ecosystem, with key stakeholders — including investors, providers, payors, government entities, employers and innovative startups — aligning to drive sustainable impact.
Investors should invest in intuitive digital health tools for self-management of lower-acuity needs, and innovative models to better connect clinicians and patients. More specifically, potential investments could include:
- Intuitive self-management apps and digital therapeutics for low-acuity mental health needs, reducing unnecessary ER visits
- Telehealth platforms connecting patients with behavioral health providers, expanding access and reducing stigma
- Companies focused on supporting integrated care models and the facilitation of collaboration amongst providers
- AI-powered triage and care navigation tools to guide patients to appropriate levels of behavioral health support
Providers should integrate and embrace innovative and expanded approaches to behavioral healthcare to drive better outcomes. They could:
- Invest in expanding and modernizing behavioral health departments to provide holistic comprehensive services and integrated care
- Enhance digital capabilities by enabling AI-powered synchronous and asynchronous virtual care to increase access and triage low-acuity care out of the hospital setting
- Prioritize provider research realizing insights to drive higher-quality care, e.g., connection of gut and hormonal effects on behavioral health, as well as new and alternative treatments (psychedelics, etc.)
- Integrate behavioral health into all healthcare settings and expand early intervention programs to improve access, reduce risks and lower costs
Payors should expand coverage and invest in digital enablement to mitigate risk and better address their members’ needs. For example, Payors could:
- Shift from fee-for-service models to value-based care for behavioral health, promoting a holistic model and incorporating care teams and SDOH
- Promote the adoption of digital health tools such as telehealth, virtual therapy, remote monitoring and care coordination to enhance access and reduce costs
- Optimize behavioral health reimbursement to reflect care needs and expand provider coverage, ensuring access to comprehensive services from prevention to treatment
Government and legislative bodies must prioritize equity, education and funding of innovative research to support gaps in private market funding. The government could:
- Increase funding for public behavioral health programs, expanding Medicaid to cover a full range of behavioral health services, and advocating for higher reimbursement rates
- Expand behavioral health research funding for alternative treatments, precision medicine, holistic care and AI-driven early detection and prevention
- Ensure equitable behavioral health access by expanding services in underserved areas, investing in public facilities, and integrating digital tools
- Launch public education campaigns through schools, workplaces and communities to raise awareness about behavioral health and reduce associated stigma
- Invest in behavioral health workforce development through funding and support for education and knowledge advancement
Employers should prioritize expanding access to behavioral health services to attract and retain the best talent. Employers could try to:
- Promote workplace wellness initiatives and ensure coverage of preventive care (e.g., diet, exercise and mood assessments and programs) to reduce long-term healthcare challenges
- Collaborate with payors to design and select plans that emphasize outcomes-based (e.g., value-based care) approach to reimbursement
- Promote awareness and open dialogue to destigmatize behavioral health and ensure workplace support
- Develop inclusive EAPs covering all aspects of wellness and partner with innovative behavioral health companies to expand care beyond insurance, fostering workplace equity.
Innovative startups should continue to accelerate invention of new technologies, which could include:
- AI-powered, personalized mental health solutions, integrating behavioral and physical health and improving access for underserved groups
- Precision and prevention diagnostics and therapeutics
- Future-proof solutions for affordability and seamless integration into the care network
Behavioral health represents a significant market opportunity for those positioned to navigate the challenges of the conventional, fragmented and stigmatized system. In response to rising demand, companies have begun pioneering innovative initiatives, alleviating barriers to care and contributing to a systematic, holistic and personalized care model.
Several U.S. startups are driving innovation in behavioral health accessibility through technology-driven solutions. Kintsugi is an API-based platform embedded in clinical workflows that leverages biomarkers to detect early signs of depression and distress, enabling proactive intervention in clinical settings.11 Similarly, Woebot Health utilizes AI-powered cognitive behavioral therapy (“CBT”) to provide scalable, on-demand mental health support, reducing reliance on in-person and provider-driven care and expanding access across socioeconomic groups.12 These innovative approaches are revolutionizing the way behavioral health is accessed and delivered, setting the stage for transformative change. The opportunity is clear: by reimagining behavioral health through the five key dimensions of the consumer healthcare experience — care, compassion, convenience, content and cost — the United States has the potential to lead to a global shift toward a more effective, accessible and sustainable behavioral healthcare system.
Footnotes:
1: “2023 NSDUH Annual National Report,” Substance Abuse and Mental Health Services Administration (2023).
2: “Trends Shaping the Health Economy: Behavioral Health,” Trilliant Health (2023).
3: “The State of Mental Health in America,” Mental Health America (2023).
4: “Behavioral Health Workforce Brief 2023,” Health Resources and Services Administration (2023).
5: “Surgeon General’s Advisory on Youth Mental Health,” U.S. Department of Health and Human Services (2023).
6:Spencer MR, Garnett MF, Miniño AM, “Drug overdose deaths in the United States, 2002–2022,” NCHS Data Brief (March 21, 2024).
7: Brody D., Pratt L., Hughes J., “Prevalence of Depression Among Adults Aged 20 and Over: United States, 2013–2016,” National Center for Health Statistics, Centers for Disease Control and Prevention (2018).
8: “2022 NSDUH Race/Ethnicity Highlights,” Substance Abuse and Mental Health Services Administration (2022).
9: Christine Kuehner, “Why is depression more common among women than among men?” The Lancet Psychiatry (February 2017).
10: “Behavioral Health Market Size, Share, and Trends 2025 to 2034,” Precedence Research (January 28, 2025).
11: “Kintsugi Health Website,” Kintsugi Health (2025).
12: “Woebot Health Website,” Woebot Health (2025).
Related Insights
Related Information
Published
May 13, 2025
Key Contacts
Senior Managing Director
Senior Managing Director
Director