Getting into the right - Headspace Health

 

Headspace Health (headspacehealth.com)


What is the company? How much have they raised to date?

Headspace Health is the culmination of Headspace and Ginger merging in 2021 to form a $3 billion health company. While Headspace had grown to be a successful mindfulness and meditation app, Ginger was a growing on-demand mental health care company. Today the two companies operate under the Headspace Health umbrella. The Headspace app can still be used and purchased right from the app store, or it can come alongside Ginger in an EAP offering.

What's their mission? 
Headspace Health is on a mission to help us be kinder to our minds. Ginger's mission is to reinvent mental health by coupling data science and virtual delivery to provide immediate support to everyone.

Who founded the company? Are their clinicians on the executive team? 
Headspace was started by Andy Puddicombe and Rich Pierson. Andy had extensive with meditation, traveled to the Himalayas to study meditation, and was ordained as a Tibetan Buddhist Monk in Northern India. Andy met Rich at Andy's meditation clinic when rich was burnt out from his ad agency job. Ginger on the other hand was founded in an MIT Media Lab in 2011 by a team of entrepreneurs and data scientists. One cofounder is Karan Singh. Before founding Ginger Karan worked at Humedica and as a consultant at ZS Associates.

Today, the top clinician at Headspace Health is Dana Udall who is a licensed psychologist and PhD. Before Headspace, Dana had experience in a variety of roles across treatment centers, IOP programs, universities, and private practice.

What's the business model? How does this company make money?  
Headspace Health is offered as an EAP to companies. Headspace the app offers 14 days free before becoming $12.99 monthly or $69.99 for the year.

What does one get for paying that price? 
Headspace's app offers a huge library of meditation guides, to mindfulness content that may be helpful when trying to sleep, focus, or get on the move. Headspace does a number of collaborations with sports stars to brands like Star Wars. Ginger also offers care at a variety of levels from guides, to mental health coaches, therapists, and psychiatrists. Ginger also emphasizes their around-the-clock availability of mental health coaches. They state 76% of members have used Ginger outside of 9-5.

What is the cancellation policy? 
The EAP offering comes with your employer and may be lost if you leave your current employer. If you purchase the app directly you can cancel at any time but you may have prepaid for a year of access. You can not cancel for a refund in the middle of a billing cycle.

If applicable, what are the pay/benefits for therapists? 
Ginger offers both contracted and full-time clinical roles. Ginger offers flexible time off, paid parental leave, and a monthly wellness stipend.

The Review 
Overall Headspace Health is probably one of the longer-running mental wellness companies that have continually found ways to grow, find new swim lanes, and continue to effectively operate. The Headspace and Ginger merger helped both companies continue their mission and Headspace Health formed a much stronger B2B offering. According to a number of Glassdoor reviews, Ginger has a very supportive culture. In fact, a therapist reported in April that the salary, benefits, and culture were great. The salaries reported to Glassdoor aren't quite as high as I expected for that comment. However, the contracted roles reported quite a high total pay. It looks like therapists can expect to earn $60,000-$100,000 depending on license, experience, and location. On the other hand, Headspace appears to be having a more difficult time adjusting to the merger. Headspace's CEO has a 55% approval rating - keep that in mind when you get to Modern Health. Similar to Ginger, even with the confusion with the merger, it seems everyone agrees at Headspace Health you're working in a supportive culture and a company that cares about you.

The Headspace app is more focused on meditation and wellness than mental health services, so there's not nearly the same data as some of the other platforms. However, Headspace can use your data to serve advertisements to you on Google and Facebook. Ginger is handling the sensitive information and their Notice of Privacy Practices is pretty impressive, with an extensive explanation of how data may be used for research.

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