CVS Health invests $25 million in Array Behavioral Care
Mount Laurel Behavioral care group She said she recently closed a recent equity round to scale modern behavioral healthcare, with CVS Health He leads the round with an investment of $25 million. Existing investors also joined the round and contributed additional capital.
Array Behavioral Care has provided telepsychiatry services for more than 20 years. The clinic provides virtual behavioral healthcare services nationwide in hospitals, community clinics, primary care offices, and patients’ homes. It is part of Etna network of providers. CVS purchased health insurance company 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 care.
“Array has always been a strong provider of mental health care within the Aetna network,” said Kara McNulty, chief of behavioral and mental health at CVS Health. “As CVS Health drives further innovation in the delivery of care, we look forward to working with Array to advance access that complements our existing services in new ways.”
With CVS Health as the new investor, Array will expand faster to provide more access to timely, high-quality behavioral care in new and existing markets through service offerings, improved operations, innovative technology and an expanding 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 virtual mental health programs across the continuum of care. From our first encounter with telepsychiatry in a rural hospital in 1999 to Caring for Patients Online from Their Homes Today, we’ve stayed true to our mission of meeting patients wherever they are no matter their level of severity or setting to deliver the behavioral health care they deserve,” said Jeffrey Boyce, co-founder and CEO of Array. “As we continue to lead the way in transforming Access to modern behavioral healthcare, we are proud to do this with our existing partners and CVS Health.”
An estimated 150 million Americans, or 40% of the population, live in federally designated mental health professional shortage areas. According to research by the US Department of Health and Human Services, only 27.7% of the national need for mental health professionals is met. A dearth 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 limiting patient access and increasing collaboration between mental and physical health clinicians.
“Our practice has always been focused on helping provide patients with the care they need, when and where they need it, without sacrificing quality,” said Dr. James Farrell, Co-Founder and Chief Medical Officer of Array. “It is clear that tele-behavioral care is one of the most meaningful ways to address physician shortages and the mental health crisis. As our practice expands its reach, our patients and partners can rest assured knowing that we are leading by quality and clinical excellence first and foremost.”
Virtual solutions can also benefit psychiatrists, therapists and other physicians who can often shoulder an excessive administrative workload that detracts from the time that could be spent providing 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 Array’s advisor on the deal with a team led by Puneet Chandhok.