The telehealth industry is continuing its rapid evolution, and American Well, a leading telehealth platform provider, is making a major move to strengthen its position in the behavioral health space. The company has entered into a definitive agreement to acquire Aligned Telehealth, a national provider of virtual behavioral health services. While the financial details of the acquisition have not been disclosed, the strategic implications of this move are clear: American Well is doubling down on its commitment to improving access to mental health care.
A Closer Look at American Well
Based in Boston, American Well is a global telehealth platform provider that has become a dominant player in the virtual care industry. Its solutions are used by over 160 health systems and 55 health plans, offering services that span the entire continuum of care. From chronic disease management to post-acute care, American Well has built an expansive telehealth infrastructure designed to meet a wide range of healthcare needs.
With the acquisition of Aligned Telehealth, American Well is further strengthening its behavioral health capabilities—a sector that has seen growing demand due to increasing mental health awareness and access challenges.
What Aligned Telehealth Brings to the Table
Headquartered in Woodland Hills, California, Aligned Telehealth has carved out a strong presence in the behavioral health sector, providing virtual psychiatric consultations and telepsychiatry services. The company supports major medical centers and Medicaid plans, counting organizations such as Dignity Health and Christus Health among its partners. Since its founding in 2012, Aligned Telehealth has raised nearly $13 million in funding, making it a well-established player in the telepsychiatry space.
According to a press release announcing the acquisition, American Well chairman and CEO Ido Schoenberg emphasized the importance of expanding behavioral health services:
“By adding the Aligned clinical network and expertise, American Well can further expand and enhance our virtual behavioral health programs, an exciting and important endeavor that will positively impact patients, their families and the treatment teams providing their care, while advancing clinical outcomes and reducing overall costs.”
Addressing Behavioral Health Access Issues
One of the biggest challenges in behavioral health care is accessibility. While societal stigma around mental health continues to decline, logistical barriers persist. A nationwide shortage of behavioral health providers has created long wait times, limiting access for those who need care the most. In fact, studies indicate that only about one-quarter of the country’s mental health needs are being met, leaving millions of individuals without adequate support.
Telehealth has emerged as a powerful solution to these challenges. By eliminating geographical barriers and reducing wait times, virtual care allows individuals to receive timely mental health treatment, regardless of their location.
Aligned Telehealth founder Nitin Nanda underscored the significance of this acquisition in addressing these issues:
“We’re excited to join forces with American Well to help patients further overcome the barriers of access, cost, time, and stigma when it comes to getting the care they need and reducing the burden on providers.”
The Growing Demand for Telepsychiatry
Telehealth adoption has surged in recent years, driven by technological advancements, evolving consumer preferences, and policy changes that support virtual care reimbursement. The COVID-19 pandemic further accelerated this shift, highlighting the urgent need for remote healthcare solutions, particularly in mental health care.
The demand for behavioral health services is at an all-time high, with mental health disorders affecting millions of Americans each year. According to the National Alliance on Mental Illness (NAMI), one in five adults in the U.S. experiences a mental illness annually, yet many struggle to access timely and effective treatment.
Telepsychiatry is uniquely positioned to bridge this gap by providing:
- Increased access to mental health professionals, especially in underserved areas.
- Reduced wait times for psychiatric evaluations and therapy sessions.
- Greater convenience for patients who may have transportation or mobility challenges.
- Cost-effective care by reducing the need for in-person visits and hospital admissions.
By acquiring Aligned Telehealth, American Well is tapping into this growing demand and solidifying its role as a leader in virtual behavioral health services.
How This Acquisition Strengthens American Well
This strategic move will allow American Well to:
- Expand its behavioral health offerings: The integration of Aligned Telehealth’s expertise and provider network will enhance American Well’s ability to deliver virtual psychiatric care.
- Differentiate itself in the telehealth market: With many companies vying for dominance in the virtual care space, behavioral health remains a key area for differentiation and growth.
- Improve patient outcomes and provider satisfaction: By offering more robust mental health services, American Well can contribute to better clinical outcomes while also alleviating provider shortages.
Beyond its immediate impact on American Well’s service portfolio, this acquisition signals a larger trend in the healthcare industry: the growing importance of telehealth in addressing mental health challenges.
Looking Ahead
As telehealth continues to gain momentum, mergers and acquisitions like this one will play a crucial role in shaping the industry’s future. With American Well’s acquisition of Aligned Telehealth, we can expect to see further advancements in virtual behavioral health services, making it easier for individuals to receive the mental health care they need.
For patients, providers, and payers alike, this deal represents a step forward in the ongoing effort to improve access, affordability, and quality in behavioral health care.
As the industry evolves, one thing is clear: telehealth is no longer just an alternative—it’s a vital component of modern healthcare delivery.
