Daybreak Health

Daybreak Health is a school-based youth mental health provider that partners with K-12 school districts to deliver evidence-based teletherapy, in-person therapy and universal mental health screeners for students. Its core program provides video-based 1:1 sessions of about 50 minutes held weekly with a matched therapist, with text-based messaging support between sessions; clinicians are available between 7am and 8pm on weekdays, on Saturdays and during school breaks, and sessions can occur at home or at school, inside or outside school hours. The standard treatment cycle runs 12+ weeks and is designed to continue until measurable symptomatic, functional and behavioral improvement, with the option to extend if the therapist and school counselor agree. Programs cover grades K-12, with family therapy for elementary-aged children and 1:1 work for students aged 10 and older; the company does not provide psychiatry or prescribe medication.

Students are matched with clinicians through a process that accounts for presenting need, cultural background, language, clinical style, personality and schedule. The company reports its clinicians specialize across 26 mental health conditions and 13 modalities of care, and that 74% identify as BIPOC and 14% as members of the LGBTQIA+ community. Specialized sub-programs target populations at higher risk of mental health challenges, including BIPOC, LGBTQIA+, low-income, rural and homeless youth. Beyond direct care, Daybreak offers mental health classes for school staff and families and early-identification tools for students who could benefit from support. Its platforms are described as compliant with federal and state privacy laws including FERPA and HIPAA, with student therapy records owned by students and parents and the public agency receiving a subset such as session attendance, intake and discharge.

At launch in 2020 the company worked with a team of ten clinicians and roughly 20 Bay Area schools and pediatric groups, initially focused on teens aged 13-19, with an hour-long intake consultation for both teen and parent, and additional "trained listener" support for less acute cases. It has since expanded nationally to work with school districts across the U.S.

Founding story

Co-founder and CEO Alex Alvarado's younger brother struggled with depression from age twelve through middle and high school; the family spent years unable to find affordable, accessible care, as schools then offered little mental health support and local therapists who accepted their insurance were hard to find. His brother experienced a crisis, attempted to take his own life, and ultimately dropped out of school. Alvarado, a Stanford '12 graduate who had spent about a decade building digital health products, founded Daybreak with Siddarth (Sid) Cidambi and Luke Mercado; Alvarado and Cidambi had both worked at consulting firm Oliver Wyman, and Alvarado and Mercado knew each other from the healthcare startup Jiff, later acquired by Castlight Health.

Business model

Daybreak contracts with school districts to operate or extend their student mental health programs, and bills covered sessions to health insurance. It states partnerships with more than 50 health plans so that children on Medicaid or commercial insurance are covered; in many district partnerships therapy is available to families at no cost, while in some cases families are responsible for an insurance co-pay. In certain district arrangements claims are not submitted to insurance at all. At launch, care was covered either through insurance or an $89 per-week fee.

Revenue comes from district partnership contracts combined with insurance reimbursement — claims submitted to Medicaid and commercial plans for covered teletherapy sessions — with some cases involving family co-pays. An early direct-pay option was priced at $89 per week.

Traction

The company reports district partnerships representing more than 1.5 million enrolled students and partnerships with over 50 health plans. In August 2023 it cited over 60 district partners in the U.S., and its story page cites support for the mental health programs of more than 60 school districts representing more than 1 million students. Reported outcomes include 81% of students improving on the GAD/PHQ (with 81% of students in the 2022-23 school year showing symptomatic and behavioral improvements), 80% of school staff reporting improvements in attendance, grades and behavior, 92% of families reporting behavioral improvements at home, and 90% of students reporting a good clinical match. Y Combinator lists a team size of 20.

Latest developments

In August 2023 Daybreak announced a $13 million Series B led by Union Square Ventures, with new investor Lux Capital and existing investors Lightspeed Venture Partners, Maven Ventures and Y Combinator, earmarked for geographic expansion and partnerships with additional school districts. The company was hiring for roles including school enablement and licensed therapist positions.