Why Centana Invested in Tava Health
Author: Sarah Kim | Co-Authors: Devi Malhotra, Michael Vergara
If you’ve tried to find a therapist in the past few years, you’ve probably felt it: fewer open slots, longer waiting times, and more difficulty finding the right person and fit for what you’re looking for. And for good reason: COVID-19 both normalized and accelerated the proliferation of virtual therapy, and demand has remained elevated. Across employers, insurers, and providers, utilization remains above pre-COVID levels, reflecting reduced stigma and a lasting shift in care-seeking. Claims data show psychotherapy use in 2024-25 to be meaningfully elevated versus pre-COVID levels, with telehealth now a standard modality. Additionally, health plans have become increasingly aware of these demand trends, with 78% taking steps to increase reimbursement rates for mental health providers and 89% working to expand provider capacity1.
The U.S. healthcare system is struggling to keep up. Access bottlenecks persist due to therapist shortages, outdated workflows, and coverage gaps. As of 2024, about one-third of Americans (122 million people) lived in a Mental Health Professional Shortage Area, and the U.S. faces a projected shortfall of nearly 700,000 professionals by 20372. As a result, nearly half of the 59 million adults with a mental illness remain untreated2.
Traditional Employee Assistance Programs (EAPs) are often strained by increased demand and rising volumes. Employers cite long wait times, limited provider diversity and specialization, and low utilization. Despite being offered by over 82% of organizations, EAPs can fall short when employees need ongoing quality care3.
Cost is another barrier – and it’s most acute in the “forgotten middle” of the market. There are approximately 20,000 smaller- and mid-market employers in the US4. These employers face clear demand from their teams but lack the budget flexibility to add premium, fixed-cost (PEPM) solutions. We believe Tava Health is well positioned to address this gap, enabling employers and employees to better leverage existing insurance premiums as rising costs drive demand for its differentiated usage-based pricing model.
A Platform Built for Access, Depth, and Flexibility
Tava Health’s differentiation stems from three core assets: a broad insurance network, a two-sided marketplace serving therapists and employers, and an integrated platform spanning EMR, scheduling, telehealth, credentialing, and claims – together designed to support improving access, affordability, and continuity.
Since 2019, Tava Health has built a network spanning 80+ payers and covering 90%+ of the commercially insured population nationwide, enabling flexible plan design, lower out-of-pocket costs, and in-network participation without the burden of private practice.
Tava offers a cost-efficient model that leverages employer health plan coverage – sessions can be billed primarily to insurance (leaving employees with no cost or a standard co-pay once applicable deductibles are met). That means employers can expand access without introducing yet another per-employee per-month expense, while still offering a modern, easy-to-use experience.
Tava Health’s two-sided model combines an MSO-style provider platform with an employer-facing, on-demand care marketplace, allowing therapists to manage patients while receiving employer referrals in a single workflow. Providers can also use Tava Health to run their existing patient base with greater efficiency on the platform. By handling onboarding, credentialing, billing, and claims, Tava Health offers a “private practice in a box,” for providers, designed to reduce administrative friction and strengthening network effects. This same full-service infrastructure can also be delivered to EAPs – effectively giving EAP partners additional therapy capacity and flexible virtual workflows without requiring them to build internal capabilities.
Tava Health has also made benefits brokers core to its go-to-market, reflecting their central role in mid-market benefits decisions. By educating brokers on its insurance-backed, usage-based model, Tava Health is working to accelerate adoption.
A Moment for Efficient, Outcomes-Oriented Solutions
Mental health remains a top employer priority, but rising costs have increased scrutiny on benefits spend. Employers are increasingly shifting toward solutions that deliver strong clinical outcomes and engagement while maintaining predictable, ROI-driven cost structures.
At the same time, payer economics are tightening. Elevated medical loss ratios in behavioral health are driving pressure for controlled reimbursement and greater visibility into outcomes. We believe Tava Health is well-positioned in this environment due to its clinical rigor and cost-conscious model.
How Centana Will Support Tava Health’s Next Chapter
As growth investors focused on the financial services ecosystem, Centana has deep connectivity across health insurers, hospital systems, and benefits consultants – key stakeholders in the adoption of digital mental health solutions. For these groups, clinical efficacy and cost-effectiveness are critical.
Centana has experience backing companies solving core benefits and broader healthcare-adjacent pain points where efficacy and ROI are core to the value proposition, including Employee Navigator / Ease (benefit administration platform), The Helper Bees (aging-in-place platform), Benepass (pre-tax benefits and LSA management platform), 401GO (401k administration platform), and RepeatMD (cash-pay patient engagement and rewards platform). Given our robust and diversified exposure we understand how important these solutions are to managing long-term costs. Centana also has significant experience investing in the Insurtech space, and our connectivity across the broader insurance and healthcare ecosystems both informed our evaluation of this opportunity and attracted Tava Health to Centana.
The Road Ahead
Mental health solutions are no longer optional: they are essential. Employers, insurers, and clinicians are seeking solutions that balance access, affordability, and quality. We believe Tava Health’s combination of payer integration, provider enablement, and its two-sided platform positions it well in a large, underserved market. We are excited to partner with Dallen and the Tava Health team as they work to expand access to care, support providers, and improve outcomes for employers and patients.
Important Disclosures
This document is for informational purposes only. It does not constitute investment advice or an offer, solicitation, or recommendation to buy or sell any security or interest in any fund managed by Centana Growth Partners, and is not intended for retail investors.
Tava Health is one of several investments made by Centana and may not be representative of other Centana investments. A list of all portfolio investments is available upon request.
This document contains forward-looking statements that are based on current expectations and subject to risks and uncertainties, including market, regulatory, competitive, and company-specific factors. Actual results may differ materially, and Centana undertakes no obligation to update these statements. Third-party data has not been independently verified. Past performance is not indicative of future results.
