Avel eCare Acquires Amwell Psychiatric Care to Expand Behavioral Health Services Nationwide

Avel eCare has acquired Amwell Psychiatric Care, a division of Amwell, to expand its behavioral health services across the United States. This acquisition will allow Avel to extend its reach into 46 states, helping to meet the growing demand for mental health care. By integrating Amwell’s expertise, Avel aims to streamline the process for patients in mental health crises, enabling faster access to clinically trained professionals.

Doug Duskin, CEO of Avel eCare, emphasized that this acquisition aligns with Avel’s mission to enhance healthcare delivery and provide hospitals, health systems, and communities with the necessary tools to address healthcare challenges more effectively. Avel’s telemedicine platform, which offers clinician-to-clinician services across various specialties, will benefit from the added psychiatric care capacity, helping to reduce wait times and improve outcomes for patients in need of behavioral health support.

Amwell, formerly known as American Well, has faced financial difficulties in recent years. The company’s stock price dropped significantly in 2024, losing nearly 66% of its value, and it was at risk of being delisted from the New York Stock Exchange due to its low share price. Amwell has also been struggling with high losses and had to reduce its workforce by 10% in 2023. Despite these challenges, Amwell is hopeful for a return to profitability, especially with a major contract with the Defense Health Agency valued at up to $180 million, which is expected to bolster its financial position.

On the other hand, Avel eCare has seen significant growth, especially throughout 2023. The company expanded its operations into more than a dozen new states, driven by increasing health system deployments and acquisitions. Avel also launched a crisis care program that provides 24/7 behavioral health support to law enforcement officers, as well as an emergency medicine services program that places its physicians and nurses in ambulances to support EMTs and paramedics. These programs highlight Avel’s commitment to enhancing healthcare access, especially in critical situations.

Through this acquisition, Avel further strengthens its telemedicine services, offering a unique combination of technology and a broad network of virtual providers. The company continues to emphasize improved quality of care, reduced costs, and better outcomes, marking a strategic expansion in the behavioral health sector.