The mental health market, which many consider as a segment of the more significant health and wellness market, is exploding in size and popularity. Economists predict that by 2025, the mental and behavioral health industry could be worth $4.31 billion USD, with mental health products and services making up a large percentage of that. Here are a few of the recent headlines driving the explosive growth of this new market.
Founders of AbleTo Acquire Joyable
In a business merger, mental health startup AbleTo, a service that connects mental health patients and mental health providers, reportedly purchased Joyable, an online therapy service. With 60 million American children and adults living without access to the necessary therapy that they need, this comes at a crucial period. While the company hasn’t released any figures about the cost of the acquisition, one source familiar with the matter said that it was at least “eight figures,” or about $10+ million.
AbleTo’s backers have raised upwards of $50 million from sources like Aetna and United Healthcare company Optum. AbleTo is often used by employers to help employees struggling from ailments like depression or anxiety. When asked about the costly acquisition, AbleTo’s CEO, Trip Hofer, commented that “There’s been a bunch of acquisitions recently. I see that as a recognition that behavioral health is something that needs to be addressed.”
UnitedHealth Faces Class Action Suit
A northern California judge ruled earlier this week against UnitedHealth Group, an insurance company, for failing to provide its customers with mental health and substance abuse problems proper care. The class-action lawsuit, which includes UnitedHealthcare subscribers from 2011-2017, alleged that the healthcare giant limited the available “acute and immediate” coverage that they needed to treat mental health and substance abuse problems. Legal experts expect the company to appeal the decision.
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