Lifestance Health Group (LFST) investor relations material

Differentiation and business model

• Operates as a leader in outpatient mental health with over 7,500 clinicians and nearly 1 million patients, offering both in-person and virtual care across 33 states.

• Employs W2 clinicians, focusing on the commercially insured population, supporting a durable and flexible business model.

• Provides a broad range of licensure and services, including psychiatry, therapy, neuropsych testing, and advanced treatments for depression.

Clinician value proposition and retention

• Offers competitive compensation, benefits, and administrative support, differentiating from 1099 competitors.

• Shifted clinician incentives from stock-based to cash-based, resulting in positive feedback and improved engagement.

• Focuses on filling existing clinician capacity and improving patient retention through CRM tools and scheduling initiatives.

• Targets long-term clinician retention rates in the mid to high 80% range, with incremental improvements expected.

Payer dynamics and reimbursement

• Expects low to mid-single-digit rate increases in coming years, supported by payer demand for mental health access despite financial pressures.

• Successfully digested a major rate reduction from a large national payer through phased negotiations, maintaining margin expansion.

• Recognizes growing payer appreciation for the link between mental and physical health in reducing total care costs.