Westlake Village-based Precise Behavioral Inc., a tech-enabled mental health company providing in-person and virtual care services, has secured $14.2 million in venture funding.
Chicago-based A1 Health Ventures led the funding round, which was announced July 29. Also participating were Ziegler Link-Age Fund, which has headquarters in both Chicago and Mason, Ohio; Converge Capital Partners of Austin, Texas; and Granite Financial Holdings, an affiliate of Meridian, Idaho-based Blue Cross of Idaho.
Precise Behavioral was founded in 2022 by Nitin Nanda, a geriatric psychiatrist and healthcare entrepreneur. Nanda had previously engineered the sale of Woodland Hills-based Aligned Telehealth to Boston-based American Well Corp., known as Amwell, in 2019 for an undisclosed sum.
Precise Behavioral’s platform works across care settings to provide on-demand clinical consults, a virtual psychiatry and ambulatory clinic, a post-discharge emergency room follow-up solution and collaborative care to help integrate behavioral health into primary care settings. The company partners with hospitals, health systems, skilled nursing facilities and correctional facilities to modernize behavioral healthcare delivery.
On the back end, Precise Behavioral provides specialized revenue cycle management and billing services that help clients streamline reimbursement and maintain regulatory compliance.
“Behavioral health continues to be one of the greatest operational challenges facing hospitals,” Nanda said in a statement. “Service line owners are managing numerous vendors and fragmented workflows when they need a singular enterprise solution that improves access, outcomes, and operational performance.”
Scaling operations
Nanda said the additional venture fund will be used to scale up operations, both in the services offered and in partnerships with healthcare providers. The company has already announced partnerships with Chicago-based CommonSpirit Health and Ontario-based Prime Healthcare Services Inc.
A1 Health Ventures said it decided to lead the investment round because it saw a fragmented market for behavioral health services for hospital patients.
“No one has holistically addressed the behavioral health needs of health systems and hospitals comprehensively,” Karim Botros, managing partner at A1 Health Ventures, said in a statement. “Precise Behavioral targeted this niche early on and has scaled rapidly, reaching profitability in under three years, delivering more than 100,000 patient encounters, and building a national clinical footprint.”
