Handspring Health Financial Model
InsurTech Startup Financials (Free Excel Download)
Modern hybrid (in-person + virtual) behavioral health clinic for children and families aged 0–18.
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About this model
Handspring Health is a hybrid behavioral-health clinic for children and families, combining physical locations, virtual care, digital resources, therapy, care coordination, and future psychiatry services. Its stepped-care model routes families to the appropriate intensity of treatment.
The primary business model is insurance reimbursement for clinical services rather than a pure subscription. Technology supports engagement and care coordination, while in-network access is intended to make comprehensive family mental-health care more available.
The model is a multi-site clinic P&L. Locations, clinicians, sessions per clinician, reimbursement per session, utilization, payer mix, and virtual-care volume build revenue. Provider hiring, occupancy, care quality, and referral growth determine contribution margin.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
About Handspring Health
handspringhealth.com
How to build a detailed financial model for Handspring Health
A complete walkthrough of the business, drivers, and assumptions behind the downloadable Handspring Health model - distilled from its pitch deck and publicly available information.
Product & value proposition
- Omnichannel care model: brick-and-mortar clinics + virtual care platform, not virtual-only.
- Services offered: digital care (24/7 content / skill-building for parents and children), psychotherapy (virtual + in-person), psychiatry & medication management (planned late 2022), care coordination, technology platform (member engagement, chat, outcomes & symptom tracking).
- Evidence-based stepped care: triage families to the right modality and acuity level.
- Insurance accepted (in-network), positioned as more accessible and affordable than self-pay alternatives.
- Low capex clinic model: behavioral health needs rooms/couches, not equipment.
- Specialization in pediatric conditions: ADHD, anxiety, depression, mood disorders, OCD, eating disorders, autism; plans to add SMIs, addiction, deeper primary care integration.
- Proprietary training program for clinicians: consistency, CBT/DBT gold standards, retention focus.
Market
- U.S. children & adolescents aged 0–18: 75–80 million.
- U.S. children & adolescents aged 5–18: 55–60 million.
- U.S. children aged 5–18 with a diagnosable mental health disorder (core SOM proxy): 12–15 million.
- 20–25% of U.S. children have a diagnosable mental health disorder.
- 50% of children who need care do not receive it from a specialized behavioral health provider.
- 40–50% of total behavioral health spend attributed to those 26 and under.
- 24–28% of total behavioral health spend attributed to those 18 and under.
- 20–25% of total behavioral health spend attributed to those aged 5–18.
- Source cited by deck: 2019 & 2020 commercial insurance data.
- No explicit TAM dollar figure, SAM, or SOM dollar figure given. No market growth rate (CAGR) shown.
- Prevalence data: Anxiety Disorders 31.9%, Behavior Disorders 19.1%, Mood Disorders 14.3%, Substance Use Disorders 11.4% among adolescents 13–18.
- 50% of mental illness begins by age 14, 75% by age 24.
Revenue model
- Primary revenue: insurance reimbursement for behavioral health services (psychotherapy, psychiatry/medication management) - in-network provider model.
- Secondary / supporting: digital care / technology platform (modality not priced in deck).
- No session rates, reimbursement rates, per-visit fees, or PMPM figures disclosed.
- Channels: direct-to-consumer (families find clinics), likely employer/payer contracts implied by founders' backgrounds (Cigna, BCBS, HCSC ventures).
- No revenue figures shown. No pricing tiers disclosed.
Competition / moat
- All named competitors are described as virtual-only - no specific competitors named.
- Moat claims:
- Hybrid model: covers a wider age range and acuity spectrum than virtual-only peers.
- Clinician recruiting advantage: in-person + virtual flexibility reduces burnout, improves retention.
- Payer differentiation: unique model expected to stand out as payers consolidate contracts.
- Proprietary evidence-based training program.
- Founders have board-level relationships with Octave Health, AbleTo, Solera, Ginger/Headspace Health - likely competitive context.
Team & funding ask / use of funds
- Sahil Choudhry (CEO): Cigna Ventures, HCSC Ventures, Citi Equity Research (Managed Care), Willis Towers Watson (actuary); board roles at Ginger/Headspace Health, Octave, Solera, HCSC-Sanitas JV, Avalon, Cogitativo.
- Kwasi Kyei (COO): Cigna Ventures, BCBS Ventures, Advisory Board Co (acq. UnitedHealth), UBS IB Healthcare; board roles at Octave, AbleTo (acq. UnitedHealth), Solera, Cleerly, OncoHealth.
- Megan Martino, LCSW (Head of Clinical Operations): UCLA Resnick, The Help Group.
- Amy Kranzler, PhD (Director of Training & Consultation): Clinical psychologist, Montefiore Health System, CBT/DBT director.
- Adrian Cunanan (Head of Product): Genoa Telepsychiatry (acq. UnitedHealth), Blue Mesa Health (acq. Virgin Pulse), founder ThriveStreams.
- Advisors: Gary Henschen MD (former Magellan CMO for BH), Andrea Auxier PhD (Aware Recovery Care CGO), Doug Ghertner (CEO IVX Health, former CEO Change Healthcare).
Recommended financial model
- Archetype + why: Tech-enabled behavioral health clinic - multi-site clinic P&L + virtual care blended revenue model. Revenue is primarily fee-for-service insurance reimbursement (per-session / per-visit), not SaaS ARR. Model should track: clinic locations (ramp schedule), clinician headcount per site, sessions per clinician per week, reimbursement per session (by modality), payer mix (commercial vs. Medicaid), and a virtual care layer. Closest archetypes: multi-site healthcare services P&L (like a DSO or multi-site therapy group) with a thin SaaS/digital layer on top.
- Forecast horizon & granularity: 5 years (2022–2026), monthly for Years 1–2 (clinic launches are lumpy), quarterly for Years 3–5. Seed-stage company - keep it bottom-up by site.
- Key drivers & assumptions:
| Driver | Value | Source |
|---|---|---|
| Launch year | 2022 | - |
| Clinic launch cadence (new sites/yr) | 1–2 sites Y1, 2–4 Y2, 4–8 Y3 | Early multi-site rollout typical for funded clinic-first models |
| Clinicians per site at maturity | 8–12 FTE | Typical for mid-size outpatient BH clinic |
| Ramp to full utilization (months) | 9–12 months per site | Standard for outpatient BH |
| Sessions per clinician per week (at maturity) | 20–25 billable | Industry standard for outpatient therapy |
| Avg reimbursement per therapy session (commercial) | $120–$160 | U.S. commercial insurer rates for individual therapy CPT 90837 |
| Avg reimbursement per psychiatry session | $200–$300 | Psychiatry 99213–99214 range; psychiatry launches late 2022 |
| Payer mix: commercial / Medicaid / self-pay | 60% / 35% / 5% | Mission of serving all kids implies meaningful Medicaid exposure |
| Medicaid reimbursement haircut vs. commercial | 40–50% discount | Standard Medicaid BH rates |
| Clinician compensation (per FTE) | $70–$90k base | Therapist salaries in U.S. metro markets |
| Site overhead (rent + non-clinical staff) | $150–$250k/yr per site | Low-capex model |
| Capex per clinic fit-out | $30–$60k | Rooms and couches, no equipment |
| Virtual care revenue % of total | 10–20% blended | Hybrid model; virtual volume grows over time |
| Gross margin at maturity (clinic) | 20–35% | Typical for multi-site BH services after site maturation |
| Corporate G&A as % of revenue | 30–40% in early years, declining to 15–20% | Tech-enabled services pre-scale |
| Target population (core addressable) | 12–15 million children 5–18 with diagnosable disorder in U.S. | - |
| % of target population unserved | ~50% | - |
- Scenarios (Base / Bull / Bear - which variables flex):
- Bear: Slower clinic ramp (1 site/yr), heavy Medicaid payer mix (50%+), low utilization (15 sessions/clinician/week), clinician attrition high.
- Base: 2–3 sites/yr ramp, 60/35/5 payer mix, 20 sessions/clinician/week at maturity.
- Bull: Payer contracting velocity accelerates (more commercial plans), faster ramp (employer/health-system partnerships), virtual scale reduces marginal cost.
- Required sheets / outputs:
- Assumptions dashboard (all drivers, flagged vs.)
- Clinic build-out schedule (site count × ramp timeline)
- Clinician headcount model (by site and modality: therapy vs. psychiatry)
- Revenue model (sessions × reimbursement × payer mix by modality)
- Site-level P&L (per clinic contribution margin)
- Consolidated P&L (IS): Revenue, COGS (clinician comp), Gross Profit, S&M, R&D, G&A, EBITDA
- Simplified cash flow / runway (burn rate, funding runway given unknown raise)
- Payer mix sensitivity table (commercial % vs. blended reimbursement rate)
- KPI summary: active clinicians, weekly sessions, revenue per clinician, utilization rate
Frequently asked
Is the Handspring Health financial model free?+
Yes. The Handspring Health model is a free Excel (.xlsx) download with live formulas. Sign up with your email and the workbook is yours to keep, review, and edit.
What's included in the model?+
A 5-year monthly forecast with P&L, cash flow and runway, valuation (exit multiple plus a DCF cross-check), MOIC/IRR returns, and unit economics, with live formulas throughout.
How was this model built?+
It was built from Handspring Health's pitch deck and publicly available information, then structured to investment-banking standards as a fully editable Excel model.
Can I change the assumptions?+
Yes. You can change assumptions and the live formulas will recalculate in the downloadable Excel model.
Have more financial modelling questions? Contact us
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