In recent years, headlines have repeatedly declared a shortage of mental health providers across the United States. As a group practice owner and clinical psychologist practicing in the suburbs of Chicago, I feel compelled to challenge this narrative—not because demand for mental health services isn’t real, but because the claim of a universal shortage is, at best, misleading, and at worst, a calculated strategy driven by corporate interests.
The Myth of the Shortage
The idea that there are simply not enough therapists to meet demand is being promoted heavily—most notably by venture capital–backed mental health companies, insurance carriers, and their digital subsidiaries. What often goes unspoken is how this narrative benefits them: it drives prospective clients into their own branded networks by creating a sense of urgency and scarcity.
Meanwhile, the reality on the ground tells a different story. Across numerous clinical listservs and professional groups, private practice therapists are consistently reporting open availability. At my own practice and in conversation with colleagues throughout Illinois and beyond, many licensed clinicians—whether in solo or group practices—are actively welcoming new clients. There is no shortage of high-quality mental health therapists. So why aren’t clients finding them?
Where the Bottleneck Really Is
The exceptions to this trend do exist and must be acknowledged. Some specialties—such as child psychiatry, trauma-specific care, or providers offering services in multiple languages—can indeed be difficult to access, especially in rural or under-resourced areas. Waitlists are also common for providers who accept insurance and specialize in high-demand areas like autism assessment or EMDR. Many private practice clinicians choose not to accept insurance—or accept only a limited number of plans—because reimbursement rates are often unsustainably low and administrative burdens are high. As a result, even when providers have open availability, they may be inaccessible to clients relying on Medicaid, Medicare, or lower-tier commercial plans.
But for the average therapy-seeking adult or adolescent in an urban or suburban area, there are often many available providers. The bottleneck is not due to a lack of therapists—it’s due to how insurance companies and large corporations are directing people.
The Role of Insurance, Private Equity — and Now Direct Investment
Insurance companies are no longer just paying for care—they’re investing in and promoting the platforms that deliver it. This creates clear financial incentives to limit client access to independent providers while funneling them into insurer-backed systems.
- Alma has received major investments from Optum Ventures (a subsidiary of UnitedHealth Group) and Cigna Ventures.
- Headway has formal partnerships with Cigna, Evernorth, and Blue Cross Blue Shield, and funding from Health Care Service Corporation (HCSC), parent of several Blue Cross plans.
- Teladoc Health, which owns BetterHelp, has a subscription-based insurance partnership with UnitedHealthcare.
- MDLIVE, owned by Cigna’s Evernorth, is promoted on Cigna’s insurance portals as a preferred option for therapy and psychiatry services.
These platforms are promoted not only in provider directories, but also in insurance member newsletters, apps, and digital tools—framing them as the most accessible or reliable mental health solutions. Insurers market these companies as high-access, affordable alternatives while burying or obscuring local private practices. This fuels the perception that therapy is “impossible to find,” when in reality, many community-based clinicians are available but intentionally de-prioritized.
On the provider finder pages of insurance websites, privately owned practices are buried beneath listings for these in-network corporate providers. In some cases, clients experience ineffective search options or outdated listings for local providers—only to find the fast-track option lies with a corporate affiliate.
Some insurance companies are actively promoting these platforms in their member newsletters and digital communications—further reinforcing the message that care is only available through these corporate-backed channels. These newsletters often spotlight one or two “convenient” options while omitting the broader network of providers that exist outside of the promoted platforms.
Why? Because these partnerships are profitable. Private equity firms have invested billions into mental health startups. Insurance companies stand to benefit when clients remain in their digital, vertically integrated ecosystems—reducing overhead costs and increasing control over provider compensation and care timelines.
This system not only misleads clients but undermines independent providers who deliver in-depth, continuity-based, ethical care within their communities.
Impact on Private Practices and Solo Clinicians
Privately owned practices—often built over years of community investment and clinical dedication—are increasingly pushed aside in favor of corporate entities with deep marketing budgets and mass-produced therapy models. Even with open availability and years of clinical expertise, many qualified, licensed providers are hidden behind broken directories, low insurance visibility, and digital ecosystems designed to prioritize corporate partners. As a result, many clinicians feel pressured to join corporate networks to remain visible to potential clients despite lower reimbursement rates, high caseload demands, and limitations on quality of care.
The result? A workforce disempowered, and a public misled. Therapists are being reduced to interchangeable contractors. Clients are routed through branded portals. And mental health care is commodified into quick consultations and algorithmic matching.
This commodification of mental health care threatens the integrity of the profession. Ethical treatment is not a volume-based endeavor. Effective therapy relies on training, rapport, and nuance—not high client turnover or scripted check-ins.
The Real Path Forward: Fix the System, Don’t Distort It
If we want to genuinely address gaps in access and quality, we need to reform the insurance and delivery systems—not outsource care to platforms that profit from dysfunction. We must:
- Enforce accurate insurance directories and eliminate ghost networks.
- Increase reimbursement rates so independent clinicians can sustainably accept insurance.
- Streamline credentialing and billing processes directly through insurers—not for-profit intermediaries.
- Preserve and support local providers, ensuring they remain visible, viable, and competitive.
There is no widespread shortage of mental health therapists. There is a shortage of transparency, equity, and ethics in how care is accessed and reimbursed.
A Call to Action
The mental health profession is at a critical crossroads. With insurers investing in platforms like Headway, Alma, MDLIVE, and Teladoc, the delivery of care is being redefined by corporate interests. While these services may provide short-term convenience, they are undermining the core values of therapy: relationship, autonomy, and ethical practice.
Independent and community-based providers must advocate for transparency in insurance directories, challenge misleading public narratives, and educate clients about their choices. It is essential to preserve space for therapists who are licensed, accountable to ethical standards, and deeply committed to high-quality, individualized care.
If you’re a client searching for a therapist, know this: there are clinicians available—often nearby, highly qualified, and eager to support you. The challenge isn’t a shortage of therapists; it’s the corporate gatekeeping that prevents you from seeing them.
We must push back against the commercialization of our field and preserve what matters most: accessible, ethical, and human-centered mental health care.
