Announces $115 Million in Financing
BOSTON–(BUSINESS WIRE)–Author Health launched today as one of the first platforms to provide comprehensive care and treatment for Medicare Advantage recipients with serious mental illness and substance use disorders.
Approximately one in four Medicare recipients have a mental illness,1 and 40% of people in the U.S. over age 50 with serious mental illness report a lack of access to care.2 In order to meet this need, leading health and wellness company, Humana Inc. (NYSE: HUM), is the first to launch Author Health services in coordination with CenterWell Senior Primary Care in the Southeastern U.S.
Author Health has received $115 million in financing led by General Atlantic, a leading global growth equity firm, with participation from Flare Capital Partners. The funding will help Author Health expand into new markets and secure additional partnerships with other insurance and healthcare companies in an effort to advance its value-based approach to behavioral healthcare and increase access to high-quality services for seniors and other vulnerable populations.
“Every day, our nation experiences the devastating effects untreated mental health and substance use disorders have on individuals, families, and our communities,” said Humana President and CEO Bruce Broussard. “Humana is a national leader in value-based payment and care delivery innovation, and we intend to apply the same forward-thinking approaches to behavioral health to overcome limitations in the current system. The positive outcomes we’re seeing already in South Florida across patient populations previously thought unreachable is truly transformative.”
Author Health is led by CEO Dr. Katherine Hobbs, a psychiatrist, former health insurance executive, and a national leader in quality and value payment for behavioral health. Dr. Gary Gottlieb serves as Executive Board Chair. Dr. Gottlieb is a geriatric psychiatrist, professor of psychiatry at Harvard Medical School and former CEO of Partners HealthCare, now Mass General Brigham, the largest healthcare delivery organization in New England and among the largest biomedical research and training enterprises in the U.S.
“Our nation is clearly struggling to meet the health and social needs of people with behavioral health conditions, and those needs are only increasing within our aging population,” explained Katherine Hobbs, CEO at Author Health. “Author Health was born out of the necessity to fundamentally shift how our health system prioritizes behavioral health and preventive services. By aligning Medicare Advantage health plans and clinicians to improve health, and using a combination of technology and community relationship-building to open access for hard-to-reach populations, Author Health is primed to meet the growing demand for psychiatric care on a national scale.”
Author Health offers a team-based approach to psychiatric care, bringing together specialized physicians, nurses, therapists, and community health workers to deliver a mix of virtual and in-person care for individuals who are often disconnected from the traditional healthcare system. Through this model, patients and their caregivers are given an avenue to reconnect with healthcare providers and receive personalized and comprehensive treatment within their communities, and outside of hospitals and institutions.
Moreover, Author Health is deeply integrated with primary care. People with serious mental illness and substance use disorders often suffer from co-occurring medical conditions and health problems like diabetes, high blood pressure, and cardiovascular disease.3 These conditions can be better managed and often stabilized with behavioral health treatment integrated alongside primary care and other medical and social services. This care delivery model leads to improved quality of life for patients and their caregivers, as well as a reduction in medical emergency and inpatient hospital care, which in turn creates savings for health plans focused on value-based care.
While Author Health’s initial launch in South Florida was created in collaboration with Humana, the company is multi-payer and is expected to expand its services to include Medicare Advantage and Special Needs Plan recipients in other locations by early 2024.
“Building and supporting more robust care options is essential for the U.S. to be able to respond to the growing need for mental health and substance use services, particularly amongst seniors and people with disabilities,” said Robbert Vorhoff, Managing Director and Global Head of Healthcare at General Atlantic. “With leadership from some of the top healthcare and technology organizations in the nation, a proven, cost-effective, and scalable approach, and a meaningful market need, Author Health is well-positioned for growth. We are proud to support Author Health’s mission-driven approach and vision to change millions of lives for the better.”
The Author Health team has over 13 decades of combined go-to-market, operations, and healthcare experience, as well as a history of successfully developing and leading value-based approaches for improving health and quality of care. As part of its official launch, the company has also named Dr. Pei Nie, geriatric psychiatrist and former VP of Medical Affairs at Amwell and Aligned Health, as Chief Medical Officer.
To learn more about Author Health, visit: www.authorhealth.com.
About Author Health
Author Health is the first platform to provide comprehensive care and treatment for Medicare Advantage recipients with serious mental illness and substance use disorders. Author Health offers a team-based approach to care, bringing together specialized physicians, nurses, therapists, and community health workers to deliver a mix of virtual and in-person care for individuals who are often disconnected from the traditional healthcare system. This approach overcomes workforce shortages in behavioral health fields and geographic barriers to care and blends excellent medical treatment with the foundation of behavior change: relationships. Through this model, patients and their caregivers are given an avenue to reconnect with healthcare providers and receive personalized and comprehensive treatment outside of institutions and in their communities. Led by some of the nation’s foremost leaders in healthcare administration, behavioral health, and integrated care, the company launched from stealth in 2023 with $115 million in financing led by General Atlantic with participation from Flare Capital Partners. With Humana as its first customer, Author Health is currently serving Medicare Advantage patients in South Florida and has plans to expand as a multi-payer provider nationwide in the near future. For more information, visit: www.authorhealth.com.
About General Atlantic
General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 500 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic has more than $75 billion in assets under management inclusive of all products as of March 31, 2023, and more than 220 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Miami, Mumbai, Munich, San Francisco, São Paulo, Shanghai, Singapore, Stamford and Tel Aviv. For more information on General Atlantic, please visit: www.generalatlantic.com.
About Flare Capital Partners
Flare Capital Partners strives to help build significant healthcare technology, digital health, and healthcare services companies to improve health outcomes and broaden access while lowering costs of care. We partner with inspirational entrepreneurs who seek to transform the business of healthcare by developing innovative and impactful products and services. Flare Capital is a team of proven healthcare technology investors and senior operating executives known for thought leadership and unparalleled strategic industry resources. Our firm has raised some of the industry’s largest dedicated venture capital funds focused on early-stage opportunities in healthcare technology innovation, and our investors include leading healthcare companies, major institutional investors, important family offices, foundations, and sovereign wealth funds. We are full life-cycle investors in our portfolio companies as we work alongside entrepreneurs over their entire company-building journey. Select portfolio companies include Aetion, Aspen RxHealth, Bright Heath, Cohere Health, Eden Health, HealthVerity, Iora Health, Somatus, Tausight and VisitPay. The firm has developed the very successful Flare Scholar program with over 250 participants and actively leverages its extended industry network, Executive Partners, and Industry Advisory Board for the benefit of the entrepreneurs and founders with whom it is privileged to partner.
Learn more at www.flarecapital.com and follow the firm on Twitter @flarecapital.
1 https://www.commonwealthfund.org/sites/default/files/2020-07/McGinty_Medicare_mental_hlt_COVID_ib.pdf
2 https://www.samhsa.gov/data/sites/default/files/reports/rpt39443/2021_NNR_figure_slides.pdf
3 https://pubmed.ncbi.nlm.nih.gov/32348643/
Contacts
Media:
Author Health
Cathy Corwin
Quarter Horse for Author Health
a-health@qh-pr.com
General Atlantic
Emily Japlon & Gurion Kastenberg
media@generalatlantic.com
