Tech-backed behavioral health medical group Concert Health has scored $42 million in a Series B funding round led by Define Ventures, Healthy Ventures and Vertical Venture Partners, with participation from Townhall Ventures. Concert Health partners CommonSpirit Health and Advent Health also made a strategic investment in the business.
This news comes roughly a year after the company raked in $14 million in Series A investments. As of today, the company has roughly $56 million in funding.
Concert Health is focused on providing collaborative behavioral health care by integrating mental health services into primary care, women’s health and pediatric practices. Concert Health uses screening tools, prescription data and provider referrals to find patients who may be in need of behavioral health services.
After identifying patients, a behavioral care manager from Concert Health then reaches out to them to set up goals and help the patient manage their care. The company is also able to provide psychiatric consultants.
“[For] the primary care doctor, our partner, it’s the way they want to practice medicine,” Spencer Hutchins, co-founder and CEO of Concert Health, told Behavioral Health Business. “It’s a team based approach, actually letting them stay and be the quarterback, be the decision-maker, but really have the team and the processes around to make sure they can follow up with patients and understand what’s happening, and have the expertise of a psychiatric provider to help them make diagnosis and medication decisions.”
The bulk of Concert Health’s care is delivered remotely either over the phone or through video calls. While the company does not have its own brick-and-mortar facilities, in some of the larger practices it partners with, the Concert team is co-located in the primary care office.
Currently, the practice includes roughly 200 clinicians. But Hutchins said the company is growing. He estimates that every month, it’s hiring 10 to 20 new clinicians.
As of April 2022, the company works with 57 medical groups in 11 states, and that number will grow to 13 states by Labor Day, Hutchins noted.
The company plans to use the new investment to build out its clinical infrastructure while expanding its quality team and research apparatus. Funding will also go toward learning, development and mentorship programs for clinicians.
“[It] is a really big investment in our people operations. You know, we’re recruiting a whole lot of clinicians, and we don’t just want to recruit them, but want to build great career paths for them, and for non-clinical folks, engineers, product managers, account managers, the whole thing that will make this operation really run in home.”
Hutchins said the team plans to invest in building out its technology infrastructure and partnerships, as well to meet the growing demands.
In a previous interview with BHB, Hutchins said that the company was primarily focused on funding themselves through organic revenue growth.
“We continue to be mostly funded by revenue. We’re trying to build a real organization that is sustainable over time,” he explained. “The reason we decided to do this was really just the phenomenal commitment we had from really exciting partners, like CommonSpirit, like Advent and others … and their commitment to saying, ‘Listen, we’re on to something together, and we want this to become an enterprise-wide partnership.’”
Over the last year, tech-backed behavioral health companies have seen a massive amount of funding. According to Rock Health, investors poured at least $5.1 billion into the sector in 2021.
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