Employers Should Anticipate Expanded Youth Mental Health Services

The following article first appeared in the Insights section of Mercer’s website. It is reposted here with permission.

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To address the ongoing youth mental health crisis in the U.S., a multifaceted approach is needed from government programs, school and community resources, and private-sector solutions.

Investment in digital startups addressing youth mental health continues to rise, demonstrating the interest and opportunity to create digital solutions to support youth mental health.

Employers should expect to see existing mental health solutions expand services geared towards youth and the emergence of new digital solutions focused on virtual mental healthcare for youth.  

In 2021, the U.S. Surgeon General declared in his Youth Mental Health Advisory that the nation’s young people are experiencing alarming increases in mental health challenges.

The advisory cites alarming statistics. Among them, one in three high school students and half of female students reported persistent feelings of sadness or hopelessness, up 40% between 2009 to 2019.

The advisory further highlights the impact of media, pop culture, climate change, income inequality, social justice and gun violence on youth mental health.  

What has been the response and what is now being done to help address this crisis?

Rise in Funding

According to Rock Health, investment in digital health startups addressing youth mental health increased by 19% between 2018 to 2023. In 2023, venture funding for startups addressing youth mental health was $423 million.  

What does the youth mental health landscape look like?  

• 24% support specific conditions, such as depression, ADHD and autism spectrum disorder  
• 63% support multiple mental health conditions or general mental health needs  
• 13% are focused on integrating mental and physical healthcare and youth mental health infrastructure 

Virtual care delivery and support tools dominate the solution landscape. The vast majority (89%) of startups analyzed offer either virtual care and coaching or self-directed support, and 26% do both.  

Supporting Mental Health in Schools

For their part, the nation’s educators are focusing on connectedness and special training for students, teachers, and staff. 

The Centers for Disease Control and Prevention’s What Works in Schools program funds school districts to implement programs to foster school connectedness, including community mentorship and service-learning programs.

They are also taking steps to make schools safer and more supportive for LGBTQ+ students. The initiatives are leading to reported improvement in mental health and decreases in substance misuse, suicide, and violence.  

The initiatives are leading to reported improvement in mental health and decreases in substance misuse, suicide, and violence.

Classroom Wise is a free online course and resource library for teachers and staff that teaches social-emotional learning, behavioral regulation, mental health literacy, trauma and more.

Training school staff and students to spot and address mental health concerns may help individuals seek care earlier, reducing youth psychiatric visits to emergency departments for depression, anxiety and behavioral challenges.  

In some states like South Carolina, nearly every school can provide telehealth services at school with telehealth equipment and access to mental health providers covered by grant funding or Medicaid. 

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About the author: Anna Tran is a senior associate with Mercer.