Last week, Lyra Health, a three-year-old private equity backed, therapy platform that enables chat and televideo, was valued at $1.4 billion dollars. Today we learn that Talkspace, another private equity backed therapy platform that enables chat and video, has been valued at $1.2 billion dollars.
How much of the $1.2 billion did the therapists who built the company get?
Not a dime.
In the press release, Talkspace boasted of its 51% profit margin. What that means is that therapists get less than half of the fees Talkspace collects for therapy.
In other countries the amount of premia going to profit is on the order of 1-5%.
In America, most of the healthcare dollars go to Wall Street speculators whose intent is to turn therapists into low paid gig workers.
This is not the solution. This is the problem.
Author: Geoff V. Gray, PhD