San Francisco-based Ria Health, a virtual alcohol use disorder (AUD) treatment startup, announced on Wednesday that it has raised $18 million in Series A funding. This marks a major milestone for the company, which was founded near the end of 2016, signaling strong investor confidence in the growing telehealth AUD treatment market and Ria Health’s data-driven, patient-centered model of care. The company specializes in providing virtual alcohol use disorder treatments that allow patients to access comprehensive care from the comfort of their homes, eliminating traditional barriers to seeking help for alcohol-related issues.
The Beginning of a Long Marathon
Tom Nix, CEO of Ria Health, told Behavioral Health Business that this funding round is “the beginning of a long marathon” for the company. While the raise offers a strong financial foundation, Nix emphasized that this is just the start of a longer journey toward transforming alcohol use disorder treatment nationwide through virtual care.
“This funding and our partnerships with top payers validate the work our team has done,” Nix said. “But we recognize there’s still a lot to accomplish. Our mission is to make effective virtual alcohol use disorder treatments accessible and sustainable for millions of people.”
Strategic Investments Fueling Growth
With the new capital, Ria Health plans to invest heavily over the next five years in three critical areas:
- Expanding Commercial Teams: To accelerate outreach and sales efforts targeting employer groups and labor unions, helping integrate virtual alcohol use disorder treatments into employee health benefits.
- Growing Production and Technology Teams: To continuously improve the telehealth platform, develop new features, and enhance user experience for both patients and providers.
- Hiring Additional Care Providers: To scale clinical capacity, ensuring enough psychiatrists, addiction medicine specialists, nurse practitioners, and counselors are available to meet rising demand.
Leading Private Equity Firms Join the Round
The Series A round was led by London-based SV Health Investors LLC, a global private equity firm focused on healthcare and life sciences. Additional investments came from Boston-based BPEA Private Equity and New Jersey’s SOSV, a venture capital firm specializing in technology startups.
These investors bring not only significant capital but also strategic guidance and connections, which will be crucial as Ria Health expands its virtual alcohol use disorder treatments to new markets and payer partners.
Building Robust Payer Relationships Around Value-Based Care
For several years, Ria Health has focused on developing strong in-network contracts with major payers and promoting value-based care models. Nix sees this strategy as a cornerstone for sustainable growth and high-quality outcomes in virtual alcohol use disorder treatments.
The company has secured payer partnerships with prominent organizations such as Blue Cross Blue Shield entities, Anthem’s Beacon Health Options, UnitedHealth Group’s Optum, Highmark Health, and Centene’s Magellan Health. These collaborations ensure that Ria Health’s services are reimbursed and accessible to a broad patient population.
“Our narrow and deep specialization as a center of excellence for AUD is resonating with payers,” Nix said. “They appreciate the objective data we provide and the strong clinical outcomes we demonstrate.”
The Role of Technology in Virtual Alcohol Use Disorder Treatments
Ria Health stands out in the virtual alcohol use disorder treatments space due to its innovative use of digitally connected breathalyzer devices. These devices, integrated with the company’s telehealth platform, enable patients to track their alcohol consumption with objective, reliable data — addressing a major challenge in AUD treatment where patient self-reporting can be inaccurate or incomplete.
“When we developed the breathalyzer integration, we wanted to give patients a tool that helped them really understand how they were doing,” Nix explained. “To our surprise, patients embraced it enthusiastically. Many described it like a fitness tracker for their sobriety, which helped keep them accountable and engaged.”
This objective data strengthens clinical decision-making, allowing care teams to tailor treatment plans dynamically. It also impresses payers, who require measurable results to justify reimbursement under value-based care contracts.
Business-to-Business-to-Consumer Model Expands Reach
Ria Health operates primarily under a B2B2C (business-to-business-to-consumer) model. The company partners with payers and employers, working closely with their care coordinators to connect individuals seeking AUD treatment to Ria’s virtual platform.
Despite this infrastructure, Nix noted that many people still turn to general internet searches — “Dr. Google” — to find treatment options. Virtual alcohol use disorder treatments like those offered by Ria Health provide a credible, convenient alternative for these individuals, lowering barriers to care.
Comprehensive Virtual Care Combining Clinical and Coaching Support
Patients enrolled in Ria Health’s virtual alcohol use disorder treatments benefit from a dual care model:
- Clinical Care: Delivered by psychiatrists, addiction medicine doctors, and psychiatric nurse practitioners who oversee medication-assisted treatment (MAT) and monitor medical aspects of recovery.
- Behavioral Coaching: Provided by certified addiction counselors supervised by licensed clinical social workers, offering motivation, accountability, and support.
This combined clinical and behavioral approach addresses the complex biopsychosocial nature of AUD and increases patients’ chances of sustained recovery.
Growing Clinical Workforce and Nationwide Expansion
Ria Health employs about 100 people, with roughly 40 focused on care delivery. Over 80% of the staff are full-time employees, reflecting the company’s commitment to high-quality care.
Although Ria Health contracts with providers in all 50 states, it carefully activates operations state-by-state based on payer coverage robustness. Nix projects the company could be fully operational nationwide within six weeks, dramatically expanding access to virtual alcohol use disorder treatments.
Measurable Patient Outcomes Validate Effectiveness
The outcomes data from Ria Health’s virtual alcohol use disorder treatments are compelling. Within just 30 days, 70% of patients reduce their risk level for alcohol dependence according to the World Health Organization’s four-tier risk system. Over 12 months, more than 80% maintain or further reduce their risk levels.
These measurable improvements, supported by both patient-reported outcomes and objective breathalyzer data, provide strong evidence for payers and clinicians that virtual alcohol use disorder treatments can deliver real, lasting results.
Founders Combining Health Tech and Addiction Research Expertise
Ria Health was co-founded by Tom Nix, his brother Robert “Bob” Nix, and addiction researcher Dr. John Mendelson. Bob Nix brings deep experience from nine years at athenahealth as a vice president and technology architect, while Dr. Mendelson’s decades of addiction research lend scientific credibility to the company’s approach.
This combination of tech innovation and addiction expertise has enabled Ria Health to create a scalable, evidence-based virtual alcohol use disorder treatment platform.
The Future of Virtual Alcohol Use Disorder Treatments
As telehealth expands, virtual alcohol use disorder treatments are becoming essential to making care accessible, personalized, and effective. Ria Health’s recent $18 million raise and growing payer network highlight the increasing acceptance of virtual care as a mainstream solution for AUD.
By combining technology-enabled accountability, comprehensive clinical care, and value-based reimbursement models, Ria Health is poised to transform how millions receive treatment for alcohol use disorder in the years ahead.
