The Quarterly Price of a Digital Mental Health Solution Averages at $350; Germany Offers Higher Prices
The whitepaper from R2G’s project “Global Digital Health Pricing and Business Model Benchmark” sheds light on various aspects impacting digital health pricing and business model strategies, initially across four disease areas including mental health. With 1,137 solutions in the database, the survey still invites global digital health solution providers to participate in the ongoing project and receive updated results.
The digital mental health market continues to evolve rapidly, driven by factors such as increasing demand for mental health care, convenience of remote access, and advancements in technology. While the competitors in this space keep innovating to address the challenges in the traditional delivery of mental health services, it is important to ensure the growth of digital mental health businesses with solid pricing and revenue models.
Research2Guidance (R2G)’s new project, “Global Digital Health Pricing and Business Model Benchmark “, shares the first results from four therapeutic areas, including mental health, analysis of the pricing strategies, and business models of the digital health solution providers.
While R2G invites all digital health solution providers, in mental health and other disease areas, around the world to participate in the survey of this ongoing project, the preliminary findings shed light on various factors affecting pricing strategies, like service offerings, revenue models, customer groups, country markets, reimbursement status, and payment durations in the mental health segment.
According to the currently available data, the most preferred payment cycle by the mental health solution providers is based on quarters and the average quarterly price per user for digital mental health solutions stands at approximately $350 with a range between $230 to $570.
Digital mental health service offerings in the market segment primarily revolve around mobile health app features and functionalities, including education, mood tracking, or reminders, with 96% of solutions. 50% of the solution providers also include additional services like coaching.
Moreover, 82% of solution providers prioritize patients and consumers as direct customers, followed by 71% targeting HCPs and healthcare facilities, and 68% targeting insurances among others.
The prevalence of mobile health app services also shows itself in the revenue sources of the providers. A substantial majority of the providers (74%) rely on app usage fees as a primary source of revenue, placing mobile health apps at the core of the digital mental health businesses.
For solutions providing mobile health app services, the quarterly average price per user stands at approx. $235. Many self-paced digital cognitive behavioural therapy solutions for mental health conditions, such as Selfapy and Deprexis, can be included in this group.
The solutions providing mobile health app services and additional services such as coaching demonstrate a higher quarterly average price of around $310 per registered user, 33% more compared to only mobile health app services.
Regionally, the pricing of digital mental health solutions may vary significantly as well. For example, solutions targeting Germany cost an average of $305 quarterly per user. They charge 70-100% more than the average quarterly prices of the solutions targeting the UK and the US markets. The prescription digital therapeutics solution vorvida by GAIA Group for alcohol use disorder is provided for around $200 in DiGA for three months of use.
The currently available data from R2G’s benchmarking project also suggests that reimbursement (by statutory and/or selected health plans) increases the average quarterly price of digital mental health solutions only by 5% for the reimbursed solutions.
Overall, R2G’s Global Digital Health Pricing and Business Model Benchmark project, designed to equip stakeholders to enhance competitive pricing and business model transparency, has already collected data from 1,137 solutions globally and provide critical insights into the pricing and business strategies of digital health providers in four disease areas.
With an aim to expand the database, improve data confidence levels, and share insights from more of the therapeutic areas, R2G invites digital health solution providers to join in this ongoing benchmarking project by participating in the survey. An updated benchmarking report will be shared with all the participants after consolidating their data.
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R2G has been constantly monitoring the global digital health industry since 2010. We provide strategic advice for how to build and grow a successful digital health business within all therapeutic areas, business models, and regions. We are happy to talk and share our experience! For more information reach out to [email protected]
