Digital health unicorn Cerebral has quietly begun to close its medication-assisted treatment (MAT) program for opioid use disorder (OUD).
This comes as the Drug Enforcement Administration (DEA) on Friday announced a new proposal that would allow providers to prescribe buprenorphine for treating OUD for 30 days but then require an in-person exam. This could have significant implications for all virtual providers that do not have brick-and-mortar locations.
Cerebral has been offloading its patients to other providers for a few months, according to the company.
“Cerebral stopped accepting new patients for OUD treatment in December 2022,” a representative from Cerebral told Behavioral Health Business. “There are currently less than 20 clients under care for OUD, all of which will be safely transitioned to alternative care by mid-March 2023.”
The San Francisco-based telehealth provider launched the MAT program in April of 2022, intending to expand access to OUD providers. At the time of the launch, the provider noted that the lack of X-waiver-licensed clinics made it difficult for patients to get care.
As a result, Cerebral offered to pay its clinicians to complete the needed training to get an X-waiver, a special certification that enabled providers to prescribe MAT medication buprenorphine for OUD.
Since then, the federal government has eliminated the need for X-waivers.
Cerebral wasn’t the only virtual MAT provider on the market. Boulder Health, Bicycle Health and Ophelia Health are other providers that offer virtual MAT services.
Founded in 2019, Cerebral has raised about $462 million in funding, and its Series C funding round brought its valuation to $4.8 billion. The virtual provider offers various virtual behavioral health services treating conditions including depression, anxiety, and some serious mental illnesses.
A time of change
This closure comes at a time of transition for the virtual health company, which has faced significant challenges over the past year.
Notably, the provider has faced public scrutiny and a Department of Justice (DOJ) investigation for a potential violation of the Controlled Substance Act for its prescribing practices of ADHD medication Adderall.
The company has since discontinued prescribing all controlled substances. During this period, the company has also changed leadership. In 2022, Cerebral founder, Kyle Roberston, stepped down as CEO and was replaced by Chief Medical Officer David Mou.
Additionally, Cerebral has continued to shed staff as it evolves away from controlled substances. In fact, on Monday, the company announced that it was laying off more than 250 employees.
“Over the past year, we have taken steps to refocus on the most important service offerings for our patients,” a company spokesperson told BHB. “Today’s announcement is the culmination of that reorganization, which regrettably means reducing the size of our workforce by about 15 percent. Affected employees will be fully supported with extended severance pay and benefits, as well as outplacement services.”
This wasn’t the embattled telehealth company’s first round of layoffs. The company announced it would reduce its workforce by 20% in October after previously laying off employees in July.
In addition to cutting staff, the company has also terminated several services. In October, the company confirmed that it planned to stop offering coaching and care counseling services.
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