Avel eCare, a provider of clinician-to-clinician telemedicine services, is acquiring Amwell Psychiatric Care.
Amwell Psychiatric Care is a division of Amwell, a hybrid care delivery company. The acquisition will help Avel expand behavioral health services to 46 states to meet the growing demand for care. The acquisition will enable faster transitions for patients in mental health crises to speak with clinically trained mental health professionals.
"This acquisition allows us to align our missions and expertise to deliver better care across the entire Avel footprint," Doug Duskin, CEO of Avel eCare, said in a press release. "Together, we are equipping hospitals, health systems, and communities with the tools to address critical healthcare challenges more efficiently and effectively.”
Amwell, formerly American Well, has struggled in the stock market. As of May 2024, Amwell shares had lost nearly 66% since the start of that year versus the S&P 500’s gain of 5.6%. It disclosed in the spring of 2024 that it could be delisted from the New York Stock Exchange because its average closing price was less than $1 per share. The company cut 10% of its workforce the year prior after its losses rose to $679 million.
The Change Healthcare cyberattack impacted Amwell because customers couldn’t see their copays, executives said at the time. Nonetheless, the company was planning a path to EBITDA profitability in 2026, Fierce Healthcare reported, boosted by a major contract with the Defense Health Agency worth up to $180 million.
Meanwhile, Avel has grown its offerings, expanding operations into more than a dozen new states throughout 2023. The growth was fueled by an increase in health system deployments, recent acquisitions and the accelerating adoption of telemedicine by government agencies, the company argues at the time. The acquisitions included Texas-based hospitalist provider Fident Health and Nightwatch, a remote pharmacy services provider for hospitals, clinics and nursing homes.
In 2023, Avel launched new partnerships with several state and local government agencies. It rolled out a crisis care program, a co-responder model meant to support law enforcement officers with around-the-clock behavioral health support. Participating police departments can use the program to assist with de-escalation, stabilization and real-time safety assessments of individuals in crisis. It is also available to officers themselves, for free. Also in 2023, Avel rolled out an emergency medicine services program that puts its ER physicians and nurses into the back of moving ambulances to support EMTs and paramedics.
Avel’s telemedicine platform includes what it calls a unique combination of advanced technology and a comprehensive network of virtual providers, including docs, nurses and other clinicians representing 15 specialties. These services when combined offer reduced costs, reduced time and travel and improved quality of care, Avel argues.