In a significant move within the health care industry, Iris Telehealth has recently acquired innovaTel, a division that was previously a part of Quartet Health. This acquisition marks a notable consolidation in the digital behavioral health space, particularly in the enterprise-focused sector. With this deal, Iris Telehealth gains additional scale, as both companies had overlapping markets in several states. Prior to the acquisition, Iris Telehealth operated in 42 states, while innovaTel operated in 38 states.
Andy Flanagan, the CEO of Iris Telehealth, shared that the company has been actively seeking potential acquisitions and will continue to explore opportunities for growth. He emphasized the importance of aligning with companies that can deepen their reach within specific demographics or diagnoses. Flanagan expressed confidence in the company’s ability to grow organically and profitably, while also expanding through strategic acquisitions to enhance their scale.
Iris Telehealth’s core focus is on partnering with health systems and government-defined health entities to establish virtual behavioral health programs. The company, founded in 2013, has been dedicated to providing innovative solutions in the behavioral health space. On the other hand, Quartet Health positioned itself as a value-based care behavioral health care enablement company, working closely with health plans and health systems.
As part of the acquisition, Iris Telehealth has taken over Quartet Health’s standalone telehealth psychiatric practice. Quartet Health will continue to operate another separate medical group, maintaining its distinct offerings in the market. The acquisition comes after Quartet Health had acquired innovaTel in 2021, as part of its strategy to enhance access to care for individuals with behavioral health conditions.
In recent developments, Iris Telehealth introduced its Virtual Clinic and Iris Insights services, aiming to provide a comprehensive range of virtual behavioral health services. The company also appointed Glenn Wada as its chief growth officer, bringing in a seasoned executive to drive further expansion. Flanagan highlighted the integration of technology and clinical services to create a holistic approach to behavioral health care delivery.
With the successful completion of a $40 million Series B funding round and recognition as one of the fastest-growing companies in the U.S., Iris Telehealth has positioned itself for continued growth and success in the industry. Flanagan emphasized the company’s commitment to responsible growth, ensuring that acquisitions align with their strategic goals and contribute to sustainable expansion.
Looking ahead, industry experts anticipate increased dealmaking activity in the digital behavioral health space, with companies facing financial challenges seeking partnerships or acquisitions. Despite some uncertainties, investors remain interested in supporting behavioral health companies, especially those focused on addressing mental health needs. As data indicates, mental health services continue to be a top priority for venture capitalists investing in the health care sector.
