Amwell, a leading hybrid care delivery enablement platform, has recently announced the sale of its virtual psychiatric business to Avel eCare for $21 million. This strategic move allows both companies to focus on their core operations, with Amwell concentrating on technology as their primary service, while Avel continues as a technology-enabled service company.
Based in Boston, Massachusetts, Amwell acquired the psychiatric business in 2019, naming it Amwell Psychiatric Care (APC). By divesting this business, Amwell can now concentrate on growing its digital platform and aim to achieve cash flow positivity by 2026. The company will still offer behavioral health services through its affiliated clinical partner, Amwell Medical Group, which provides therapy, psychiatry, and a digital mental health solution called SilverCloud.
Angela Vogen, head of communications and content at Amwell, stated that the divestment of APC will enable the company to focus on enabling longitudinal-based care, which aligns with the growing demand in the behavioral health space. This move allows Amwell to streamline its portfolio of services and pursue profitable growth channels, while continuing to power the digital care aspirations of its clients.
For Avel eCare, the acquisition of Amwell’s psychiatric care group expands its customer demographic and geographic footprint. Avel, based in Sioux Falls, South Dakota, primarily served rural, critical-access community hospitals before the acquisition. With partnerships with over 650 hospitals, health systems, schools, and government bodies, Avel provides a wide range of healthcare offerings, including behavioral health, crisis care, and emergency services.
Doug Duskin, CEO of Avel eCare, sees this acquisition as part of the company’s “year of growth,” following several acquisitions over the past two years. The company’s growth strategy includes both organic and acquisitive growth, with a focus on expanding its emergency department assessment services and inpatient capabilities in the behavioral health space.
Looking ahead, Duskin plans to monitor the behavioral health market for opportunities to evolve Avel’s services, particularly in the home health behavioral offerings. While continuing to focus on the company’s clinician-to-clinician telemedicine model, Duskin remains committed to meeting the evolving needs of customers and delivering high-quality care outside of traditional healthcare settings.
