The
digital
health
M&A
wave
is
continuing,
this
time
with
Universal
Health
Services’
plan
to
acquire
virtual
behavioral
health
company
Talkspace
for
$835
million.
And
it’s
a
deal
that
makes
a
lot
of
sense
for
both
parties,
experts
say.
Universal
Health
Services
(UHS),
based
in
King
of
Prussia,
Pennsylvania,
is
a
for-profit
health
system
operating
29
inpatient
acute
care
facilities,
346
inpatient
behavioral
health
facilities
and
168
outpatient
and
other
facilities.
New
York
City-based
Talkspace
has
a
network
of
about
6,000
professionals
offering
virtual
therapy,
psychiatry
and
medication
management.
Patients
can
connect
with
their
clinicians
via
video,
audio,
chat
or
asynchronous
text
messaging.
It
serves
both
employers
and
health
plans.
Joining
forces
will
help
“establish
a
truly
national,
end-to-end
platform
for
behavioral
health
that
seamlessly
integrates
virtual
and
in-person
care,”
said
Marc
D.
Miller,
president
and
CEO
of
UHS.
Talkspace
will
become
a
subsidiary
of
the
UHS
Behavioral
Health
Division,
and
UHS
will
bring
on
Talkspace’s
network
of
6,000
therapists.
This
will
expand
the
health
system’s
reach
to
patients
who
prefer
virtual
care,
especially
younger
populations,
Miller
said.
“Talkspace’s
virtual
platform
perfectly
complements
the
high-quality
care
already
provided
at
our
facilities,”
Miller
said
in
an
email.
“This
acquisition
enables
UHS
to
accelerate
our
outpatient
and
telehealth
efforts,
ensuring
smoother
transitions
across
care
settings
and
broadening
access
to
treatment
for
patients
everywhere.”
Talkspace
will
also
be
able
to
refer
patients
who
are
in
need
of
more
intensive
outpatient,
partial
hospitalization
or
inpatient
care
to
UHS’
facilities.
“Integrating
with
UHS,
one
of
the
nation’s
largest
providers
of
inpatient
behavioral
health
services,
was
a
natural
solution
to
the
growing
demand
for
comprehensive
outpatient
care.
By
uniting
our
strengths,
we
are
providing
patients
with
a
full
spectrum
of
care
under
one
umbrella,”
said
Dr.
Jon
Cohen,
CEO
of
Talkspace.
Following
the
acquisition,
Cohen
will
report
to
Matt
Peterson,
executive
vice
president
and
president
of
UHS’
Behavioral
Health
Division.
According
to
one
healthcare
expert,
this
is
a
strategic
move
for
both
companies.
For
UHS,
the
deal
allows
the
company
to
recruit
patients
who
primarily
use
telemedicine
but
may
benefit
from
inpatient
or
outpatient
services,
as
well
as
attract
providers
at
a
time
when
recruiting
therapists
is
costly.
For
Talkspace,
the
acquisition
gives
them
more
stability.
“Think
of
Talkspace
as
a
front
door,
as
well
as
a
mechanism
to
take
advantage
of
its
payer
relationships
across
commercial
and
government
payors.
…
For
Talkspace,
it
provides
stability
in
the
face
of
volatile
markets,”
said
Christina
Farr,
managing
director
at
consulting
firm
Manatt
Health.
“While
this
might
not
have
been
a
deal
that
resembled
the
pandemic
peak,
it
is
still
relatively
healthy
overall
for
a
tech-enabled
services
company.
The
markets
are
aligning
around
the
idea
that
telemedicine
is
here
to
stay,
but
it’s
a
tool
in
the
toolkit.”
Another
analyst
agreed
that
the
transaction
is
beneficial
for
both
UHS
and
Talkspace.
“It’s
mutually
reinforcing
in
that
when
somebody
winds
up
in
inpatient
treatment,
they
sort
of
graduate
to
outpatient
treatment,
and
then
this
gives
the
institution
something
else
to
keep
them
tethered
to
the
organization,”
said
Michael
Abrams,
managing
partner
of
Numerof
&
Associates.
“It
gives
the
organization
a
full
continuum
reach,
if
you
will,
making
it
into
a
full
behavioral
health
continuum.
And
in
the
same
way
that
people
can
move
from
inpatient
to
outpatient
to
digital,
people
that
start
out
on
the
digital
end
can
wind
up
moving
to
inpatient
services.”
The
deal
is
expected
to
close
in
the
third
quarter
of
2026.
Photo:
Kritchanut,
Getty
Images