In a bold move to expand its technological capabilities and enhance its network of enterprise relationships, Thriveworks, a leading provider of mental health services, has acquired Synchronous Health, an innovative AI-powered behavioral health company. This strategic acquisition is designed to accelerate Thriveworks’ mission of integrating mental and physical health services, improving accessibility, and providing more efficient care to patients across the country. With this move, Thriveworks is not just expanding its technological base but also reinforcing its commitment to bridging the gap between physical health and mental health.
A Strategic Acquisition to Drive Growth
Thriveworks, which offers therapy and psychiatry services through both in-person and virtual appointments, has been steadily growing its reach across the United States. The company operates over 340 facilities in 49 states and Washington, D.C., employing more than 2,200 clinicians. In April 2024, Dan Frogel was named CEO of Thriveworks, and he quickly set forth a vision for the company’s future, aiming to strengthen the provider’s enterprise relationships and expand its partnerships with large groups and payers in the healthcare industry. This acquisition of Synchronous Health is a crucial step in executing that vision, positioning Thriveworks at the forefront of the evolving intersection between mental and physical health care.
Frogel shared with Behavioral Health Business that the acquisition was motivated by two main objectives. “There were two boxes that we wanted to check,” he said. “Synchronous stands for access to more diverse and enterprise relationships, health system relationships, to get ourselves in the thick of the primary and the physical and mental health intersection.” This acquisition provides Thriveworks with an expanded technology base and the opportunity to collaborate with larger healthcare organizations, including health systems, employers, payers, and educational institutions.
Synchronous Health: A Powerful Addition to Thriveworks’ Arsenal
Synchronous Health, based in Nashville, Tennessee, uses artificial intelligence (AI) to enhance behavioral health care delivery. The company pairs AI-powered behavioral health technology with telehealth behavioral health appointments, providing a hybrid model that bridges the gap between traditional therapy and digital health solutions. Synchronous Health has developed strong partnerships with major health systems, including Adventist Health System, Tufts Health System, and the Medical University of South Carolina. The company’s AI-powered behavioral health tools, including a coaching bot named Karla, offer patients care and support in between sessions, helping individuals maintain continuity of care outside of scheduled appointments.
For Thriveworks, this acquisition opens up new opportunities for growth. Frogel emphasized that the company’s top priority is building enterprise relationships with health systems. By combining Synchronous Health’s technology with Thriveworks’ existing services, the company is now in a stronger position to address a significant need in the healthcare system: the integration of mental health and physical health care. “The most common reason patients seek care with a behavioral health provider is due to a physical health physician referral,” Frogel explained. “Enterprise relationships with health systems allow physical health physicians to seamlessly refer and make appointments with behavioral health clinicians within our own system.” This integrated model, Frogel notes, is something that’s often missing in traditional direct-to-consumer models.
By combining these capabilities, Thriveworks is now able to offer a more holistic approach to care, one that connects behavioral health with physical health more effectively. This expanded offering is especially crucial in a healthcare landscape where patients are increasingly seeking coordinated care that addresses all aspects of their well-being.
Thriving in the Enterprise Market
Thriveworks is not just focused on individual patients; the company is actively expanding its enterprise business, forging stronger relationships with large groups, health systems, employers, and payers. This shift toward enterprise relationships allows Thriveworks to operate at a scale that better serves not only individual clients but also large organizations looking for comprehensive behavioral health services for their employees or patients.
By leveraging Synchronous Health’s existing agreements with major healthcare providers, Thriveworks is positioning itself to become an even more influential player in the behavioral health space. The acquisition also supports Thriveworks’ broader goal of integrating physical and mental health care, offering patients a seamless experience when navigating between different types of care.
Frogel’s leadership is central to this shift in strategy. He has been focused on expanding Thriveworks’ footprint in the enterprise sector, recognizing that partnerships with larger health systems and employers are essential for the company’s growth. His vision of a more integrated healthcare system is becoming a reality with this acquisition, as Thriveworks now has the tools and relationships needed to offer a unified, multi-faceted approach to patient care.
The Role of AI in the Future of Behavioral Health Care
A key feature of Synchronous Health that caught Thriveworks’ attention is its AI-powered behavioral health coaching bot, Karla. This tool helps patients stay on track between behavioral health appointments, providing a layer of ongoing support that traditional therapy models may lack. The use of AI in mental health care has been growing in recent years, and the acquisition of Synchronous Health allows Thriveworks to tap into this growing trend.
While Thriveworks patients will not immediately have access to Karla following the acquisition, Frogel is optimistic about the potential of AI to augment the company’s services. “From a speed-to-market perspective, being able to inherit a high-functioning, high-quality app is a lot faster,” he said. While Frogel doesn’t believe that AI will replace the role of human clinicians, he sees it as a valuable tool to help Thriveworks meet its goals more efficiently. “It will certainly augment and get us to the goals that we want, and maybe even get us to those goals even faster for our clients.”
The integration of AI-powered behavioral health technology could also bring significant benefits in terms of patient outcomes. With tools like Karla, Thriveworks can offer patients more personalized, consistent support outside of their regular therapy sessions, helping to prevent gaps in care and improve overall engagement in treatment. Over time, this could lead to better patient outcomes and higher satisfaction with services.
Looking Toward the Future: More Acquisitions on the Horizon
The acquisition of Synchronous Health is Thriveworks’ first foray into the world of acquisitions, but it’s unlikely to be the last. Frogel has indicated that the company is always exploring future opportunities for growth, particularly those that could expand Thriveworks’ capabilities or fill gaps in its current service offerings. He explained, “The first few months of my tenure [was spent] ensuring that our foundation is strong, that we are ready for explosive growth.” Thriveworks is not just growing for growth’s sake but is focused on scaling in a responsible way that maintains its commitment to clinical quality.
The company’s recent partnerships with substance use disorder (SUD) providers, such as Ophelia for opioid use disorder (OUD) and Eleanor Health for outpatient addiction treatment, show that Thriveworks is keen to diversify its offerings and strengthen its services in areas beyond traditional mental health care. These partnerships are part of a larger strategy to expand Thriveworks’ capabilities, and further acquisitions may help the company fill in other critical areas of the healthcare ecosystem.
However, Frogel also stresses the importance of measured growth. “Growth must also be measured and responsible,” he said. Thriveworks is committed to expanding while maintaining the high clinical standards and patient care quality that it has become known for. As the company moves forward, it will continue to prioritize its patients and the quality of care they receive, even as it scales its operations.
Conclusion: The Road Ahead for Thriveworks
With its acquisition of Synchronous Health, Thriveworks has taken a significant step toward becoming a leader in integrated behavioral health care. The combination of AI-powered behavioral health tools, expanded enterprise relationships, and a more holistic approach to patient care positions Thriveworks for continued growth in an increasingly complex healthcare environment. As the company looks toward the future, it remains committed to its mission of providing high-quality, accessible mental health services while exploring new ways to innovate and improve the patient experience.
Thriveworks’ acquisition of Synchronous Health is just the beginning. With more partnerships, acquisitions, and innovations on the horizon, Thriveworks is positioning itself to be at the forefront of the evolving healthcare landscape, where mental and physical health are seamlessly integrated for the benefit of all patients.
