CVS Health is investing $25 million in virtual mental health provider, Array Behavioral Care

Mount Laurel-based Array Behavioral Care announced it recently closed its latest equity round to further expand advanced behavioral healthcare, with CVS Health leading the round with an investment of $25 million. Existing investors also joined the round and contributed additional capital.

Array Behavioral Care has been providing telepsychiatric services for more than 20 years. The practice provides virtual behavioral health services in hospitals, community clinics, primary care offices and patient homes nationwide. It is part of the Aetna network of providers. CVS bought health insurer Aetna in 2018.

The funding builds on a long history between Array and CVS Health and opens doors to new levels of collaboration to expand access to quality behavioral therapy.

“Array has always been a strong mental health provider within the Aetna network,” said Cara McNulty, president of behavioral health and mental wellbeing at CVS Health. “As CVS Health drives more innovation in healthcare, we look forward to working with Array to improve access that complements our existing services in new ways.”

With CVS Health as a new investor, Array will scale faster to provide continued access to quality, timely behavioral therapy in new and existing markets through improved service offerings and operations, innovative technology and expanding the practice team.

“The Array team’s experience with telepsychiatry spans more than two decades, and during that time we have been at the forefront of creating, implementing and developing virtualized mental health programs across the continuum of care. From our first telepsychiatry encounter in a rural hospital in 1999 to providing online care to patients from their homes today, we have remained true to our mission of meeting patients where they are, regardless of their medical condition or environment, to give them the behavioral health care they deserve. said Geoffrey Boyce, co-founder and CEO of Array. “As we continue to be at the forefront of transforming access to modern behavioral healthcare, we’re proud to do so with our existing partners and CVS Health.”

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An estimated 150 million Americans, or 40% of the population, live in federally designated areas with a shortage of mental health professionals. According to research by the US Department of Health and Human Services, only 27.7% of the national need for mental health professionals is being actively met. This shortage of mental health professionals prevents patients from receiving the care they need, leading to negative health outcomes. The virtual care model allows for a more equitable distribution of clinical resources, particularly in rural and underserved communities, helping to remove barriers that limit patient access and improving collaboration between mental and physical health physicians.

“Our practice has always focused on providing patients with the care they need, when and where they need it, without sacrificing quality,” said Dr. James Varrell, Array’s co-founder and executive chief medical officer. “It is clear that telebehavioral care is one of the most meaningful ways to address the clinic shortage and mental health crisis. As our practice expands its reach, our patients and partners can rest assured that we lead with quality and clinical excellence first.”

Virtual solutions can also benefit psychiatrists, therapists and other clinicians who are often burdened with excessive administrative work that diminishes by the time that could be devoted to direct patient care.

CVS Health joins other industry leaders and early investors in array behavioral care, including Wells Fargo Strategic Capital, Health Velocity Capital, Harbor Point Capital, HLM Venture Partners, OCA Ventures and OSF Healthcare.

Wells Fargo acted as advisor to Array on the transaction with a team led by Puneet Chandhok.

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