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Diving brief:
- Amwell sells its virtual psychiatric care company to another telehealth provider, Avel eCare, for about $21 million in cash, the company announced Thursday.
- The divestiture, which includes an additional payment to Amwell if the company meets its financial goals, includes technology and personnel from the psychiatric care segment as well as Asana, a clinical network that employs and contracts with clinicians from the unit.
- Amwell CEO Ido Schoenberg said in a statement that the sale strengthens the telehealth company’s position. balance sheet and “strengthens our confidence” to achieve positive cash flow in 2026.
Dive overview:
Amwell bought Asana Medical Group in 2019 with the acquisition of a telehealth and telepsychiatry provider Aligned telehealth. In 2021, the company launched Amwell Psychiatric Carewhich used Asana clinicians to provide telepsychiatry services to hospitals and health systems.
The sale of the unit will bring about 40 health system customers in several states to Avel eCare, a spokesperson told Healthcare Dive.
Amwell will continue to offer behavioral health care, including therapy services and its SilverCloud Digital Mental Health offering, through its medical group, the telehealth company said in a statement. Amwell Medical Group included 3,000 service providers late 2023, according to a securities filing.
The telehealth company said the divestiture would help it focus its product portfolio on growth initiatives.
During a third quarter earnings call in October, Schoenberg noted that Amwell would focus on its core service subscriptions for providers and payers, “with an emphasis on other activities and priorities that are less accretive and less relevant to our overall strategy.”
However, the company is not considering additional divestments at this time, a spokesperson told Healthcare Dive.
from Amwell the stock price fell in the years since it became public during the COVID-19 pandemic in 2020. Last summer, telehealth provider implemented a reverse stock split to avoid being kicked out of the New York Stock Exchange because its stock price was trading below minimum standards.
In the third quarter, Amwell reported a net loss of $44 million, against a loss of $137 million in 2023, when the company recorded a non-cash goodwill impairment charge.
The telehealth provider reiterated its 2024 forecast on Thursday, expecting revenue to be between $247 million and $252 million and adjusted earnings before interest, taxes, depreciation and amortization to be a loss of $137 million to $142 million. dollars.