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Legal + Regulatory
Telehealth startup Done's CEO and clinical president arrested, charged with fraud (6/13/24) - Heather Landi - Fierce Healthcare Summary: Ruthia He, CEO of Done Global Inc., and David Brody, Clinical President, were arrested for healthcare fraud, accused of distributing Adderall online. They allegedly prescribed 40 million pills and generated over $100 million in revenue. The DOJ claims they exploited the COVID-19 pandemic to maximize profits through fraudulent means, facing up to 20 years in prison if convicted.
Summary: The psychedelic drug MDMA's journey to mainstream medicine faced a setback as FDA advisers rejected evidence supporting its effectiveness for PTSD. This rejection raises concerns for other psychedelics under study. Frederick Barrett from Johns Hopkins emphasizes the need for rigorous research methods. Disappointment largely stems from how Lykos Therapeutics conducted the trials.
Summary: New York’s Legislature passed the Stop Addictive Feeds Exploitation (SAFE) for Kids act, banning social media platforms from using "addictive" recommendation algorithms for users under 18. Expected to be signed by Gov. Kathy Hochul, the law mandates reverse-chronological feeds for minors. Violations could result in fines up to $5,000 per affected user.
Summary: NeuroFlow acquired Owl, creating the largest suite for behavioral health measurement and engagement across care settings. The merger enhances NeuroFlow’s platform, integrating primary and specialty care with over 400 assessments and robust analytics, supporting over 17 million lives. This move aims to improve access, quality, and outcomes in behavioral health care.
Summary: Brightside Health acquired Lionrock Recovery, adding virtual intensive outpatient programs (IOP) for addiction treatment to its services. This expansion allows Brightside to address both mental health and substance use disorders, enhancing its appeal to payers and health systems. The move follows recent funding and expansions into Medicare and Medicaid coverage.
Summary: Psylo, announced an $8 million Series Seed financing to advance PSYLO-100X, a non-hallucinogenic neuroplastogen for treating depression and mental health disorders. Unlike traditional psychedelics, PSYLO-100X promotes neuroplasticity without hallucinatory effects, reducing cardiotoxicity risks. The funding, led by Tenmile, will support preclinical studies and aims for human trials by 2025.
Summary: Akili, known for digital therapeutics for ADHD, will merge with Virtual Therapeutics in a $34 million deal set to close in Q3 2024. Akili shareholders will receive $0.4340 per share in cash. The combined entity will operate under the Virtual Therapeutics brand, with Akili ceasing to be publicly traded. The merger aims to leverage both companies' strengths to address mental health needs.
Summary: Ifeel, a European mental health startup, raised $20 million in Series B funding led by FinTLV Ventures and Korelya Capital, totaling $40 million since inception. Originally a therapy platform, it now offers mental health support through employers and insurers. CEO Amir Kaplan highlights their AI-driven digital assessment to tailor care, aiming to prevent high-risk cases and reduce business impacts. This investment aligns with the insurance industry's focus on preventive solutions.
Summary: Spectrum.Life, a digital health startup, raised €17 million in a round led by Act Venture Capital to enhance its digital health services. Founded in 2018, the company supports 7.2 million people and has experienced significant growth, aiming to recruit 100 new hires and expand its impact in the UK and beyond.
Summary: Sonia García and Stas Sokolin founded Amae Health in 2022 to address severe mental illness with a comprehensive, in-person care approach. Inspired by personal experiences, they created a clinic model integrating therapy, social work, psychiatric care, and medication management. Recently raising $15 million in Series A funding, Amae plans to expand from Los Angeles to Raleigh, Houston, Ohio, and New York.
Summary: Uwill announced an exclusive partnership to offer Headspace, the world's most accessible, comprehensive mental health platform, to the Uwill ecosystem. This collaboration enables Uwill to expand its existing mental health and wellness offering in higher education for students, faculty, and staff at a time when the demand for mental health support continues to rise.
Summary: Alma expanded its electronic health record (EHR) suite today with the introduction of AI-generated progress notes. Powered by a partnership with the AI-native therapy documentation platform Upheal, this technology incorporates extensive feedback from therapists and enables them to be more present in-sessions and save hours on progress notes that meet clinical best practices.
Summary: Premise Health is expanding its behavioral health care model by adding psychiatric support to its collaborative care teams. Through this expansion, Premise providers can consult with a psychiatric specialist on patient care, which enhances their ability to diagnose, treat, and manage a wide range of mental health conditions in the primary care setting.
Summary: Sun Life U.S. has expanded its partnership with Goodpath to offer employer clients virtual whole-person care, including unlimited therapy sessions. Sun Life disability clients can proactively support their employees' mental and physical health. As access to care issues persist around the country, Sun Life continues to expand its portfolio of health services, including mental health.
Summary: Ellipsis Health announced that it has joined the Pega Partner program. The Pega Partner program features partners who extend customers' investments in Pega with out-of-the-box solutions that are readily available to accelerate their time to market. As a Pega Partner, Ellipsis Health will integrate its AI-powered Vocal Biomarker Solutions with the Pega Infinity™ platform.
Summary: Ophelia announced the appointment of Marc Russo and Trip Hofer to its board. With their extensive experience and proven track record in the healthcare industry, Russo and Hofer bring invaluable insights and strategic guidance to Ophelia as it continues to grow its commercial payer and Medicaid business.
Summary: The Journal of Racial and Ethnic Health Disparities has published an original research article that demonstrates how virtual care can significantly enhance access to mental health care among college students across racial and ethnic groups. The peer-reviewed paper is based on findings from TimelyCare, higher education's most trusted virtual health and well-being provider.
Summary: Octave, a behavioral health care innovator, expanded services to 10 new states, now serving 17 states in total. The expansion addresses the need for in-network therapists. Octave's model, focused on effective, high-quality care, shows significant clinical improvements in depression and anxiety. Recent growth follows a $52 million Series C fundraising round and new payer partnerships.
Summary: Kyruus Health is contributing to a positive impact on behavioral health access and strives for a healthier, more connected world. The Kyruus Network is continuing to expand these connections to address the varying needs of our customers with partners also focused on bringing innovative care access to specialties and needs across the country.
Summary: LexisNexis Risk Solutions released its latest healthcare data brief highlighting new insights on key mental health trends including the continued increase in claims for mental health care, shifts in telehealth and in-person utilization, and specific diagnoses that have surged between 2019 and 2023.
Summary: Mental illness affects one in five U.S. adults annually, costing the economy $282 billion, as per a study by Yale, Columbia, and the University of Wisconsin-Madison economists. Published by the National Bureau of Economic Research, the study equates this cost to an average economic recession, 1.7% of national consumption, and is 30% higher than previous estimates which mainly considered treatment and income loss.
Summary: Vibrant Emotional Health (Vibrant) is pleased to announce the appointment of David Greenberg as its new Chief Financial Officer (CFO). He will lead the organization's financial strategy and operations to ensure Vibrant continues to expand its reach and impact. Greenberg's public service experience and fiscal management expertise make him invaluable to the leadership team.
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Serial Healthcare Entrepreneur: SonderMind’s Mark Frank (5/22/24) - The Healthcare Technology Report Summary: Entrepreneurs should consider both life and money in the risk equation when launching a business. Mark Frank's experience shows that while financial risks are significant, personal fulfillment and time with loved ones also hold substantial value. Balancing these factors can lead to a more holistic approach to entrepreneurship, fostering resilience and long-term satisfaction.
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