Universal Health Services buys Talkspace for $835M
Universal Health Services (UHS), one of the largest for-profit healthcare provider networks in the U.S., has expanded into the virtual behavioral health space, closing its $835 million buyout of Talkspace.
In an announcement on Monday, the companies confirmed the deal was now finalized, and Talkspace’s stock was removed from the NASDAQ exchange on the same day. While it is now officially a subsidiary of Pennsylvania-based UHS, the telehealth platform will still retain some independence, including separate branding.
For now, company CEO Jon Cohen, MD, will also remain in his current role—albeit under the leadership of Mac Miller, the President and CEO of UHS.
Cohen framed the acquisition as a way for both companies to reach more patients and better meet their behavioral and mental healthcare needs.
"Joining UHS allows us to accelerate the mission that has guided Talkspace from the beginning: making high-quality mental healthcare more accessible to more people," he said in a statement. "Together, we're excited to create a nationwide network of care that brings virtual, outpatient and inpatient care together to better support patients, clinicians and communities."
The acquisition will allow for patients to be referred in both directions for additional services, with UHS and Talkspace saying they aim to meet the full healthcare needs of patients, including emergency and specialty services, as well as mental health counseling and support as necessary.
"We're at an inflection point in how mental healthcare is delivered," Miller stated. "People deserve a system that is easy to navigate, connected across care settings and built around their evolving needs. The addition of Talkspace expands our ability to connect people with care when, where and how they need it most. And we are strengthening the connection between behavioral and physical health for overall wellbeing."
Therapy on demand
Through its app, Talkspace provides users with access to a therapist at any time, 24 hours a day, seven days a week. Patients can message a real human therapist via a live text chat. Video and voice calls are also available.
Talkspace has also been experimenting with the use of AI to support mental health needs, though its core business remains human-to-human connections, which are covered by most commercial insurance.
The company boasts that its virtual platform can be used to treat some 150 conditions, including anxiety, depression, and more serious conditions such as bipolar disorder. It can also be used to support good habits, such as ending gambling addiction and mitigating eating disorders.
Patients can even refill medications directly through the app.
UHS exists more in the physical world. The company has a presence in 40 states, as well as overseas in the U.K. and Ireland, with more than 540 acute care hospitals, behavioral health facilities, ambulatory care centers and other outpatient services.
Its stock remained relatively stable on the news, trading at roughly $170.50 per share.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.