Telehealth stands stronger with DTx than alone: Amwell is acquiring digital mental health therapeutics company SilverCloud and automated virtual care firm Conversa Health, signalling a new chapter in telehealth.

Pear Therapeutics announced it’s going public via a $1.6B SPAC merger—while we think it could trigger a string of digital therapeutics M&As, CMS reimbursement will be the key to wide-scale expansion.

SPACs and bankers have reportedly approached Omada about making a public debut—underscoring how rapidly the digital therapeutics space has transformed over the past year as companies test international waters.

The pandemic exacerbated clinician burnout and labor shortages as providers added more digital demands to the daily workflow. Doctors generally embrace technology to help them do their jobs, but the plethora of systems are also getting in the way.

The money will go toward solutions focusing on social determinants of health, the internet of medical things, digital therapeutics, and precision medicine. More on OSF Ventures: OSF Ventures blossomed out of OSF HealthCare—a 15-hospital health system in Illinois and Michigan.

The “never growing old” generation now faces retirement, a host of chronic health conditions, and mortality. The pandemic sparked a major shift toward digital channels to find health information, assess providers, and research Medicare plans and options.

Some are encountering VR, AR, and sensors as digital therapeutics or remote patient monitoring devices, which are provider-directed. But actively engaging with clinicians in a healthcare provider’s metaverse via AR, VR, or MR may be a bridge too far for many consumers and caregivers. Technology is one barrier for many consumers, but so is the threat of a data breach.

Digital primary care startup KHealth acquired virtual mental health app Trusst in August 2021. Amwell bought digital mental health therapeutics firm SilverCloud in July 2021. And Lyra Health recently acquired employee assistance programs provider ICAS World to appeal to more employers. Dig deeper: Check out our Mobile Health Apps report to learn more about the mHealth landscape.

Digital health companies like Sharecare are offering health systems all-in-one healthcare models that span value-based care, telehealth, digital therapeutics, and AI-powered analytics that connect all of the aforementioned.

Go deeper: Check out our Digital Therapeutics report to learn more about how digital therapies are penetrating healthcare.

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For example, digital therapy vendor Happify Health recently released a prescription digital therapeutic for major depressive disorder (Ensemble), which will be integrated into a physician’s EHR to make it easier to prescribe the app. As a result, the company’s execs are confident their EHR-integrated product will get reimbursed by top payers upon receiving FDA clearance.

Some are encountering AR, VR, and sensors as digital therapeutics or remote patient monitoring devices, which are provider-directed. But actively engaging with clinicians in a healthcare provider’s metaverse via AR, VR, or MR may be a bridge too far for many consumers and caregivers. Technology is one barrier for many consumers, but so is the threat of a data breach.

And Boehringer Ingelheim inked a $500 million deal with DTx vendor Click Therapeutics to develop and commercialize a digital treatment for schizophrenic patients. But it’s unlikely consumers will try out digital therapies developed by companies they don’t trust.

Happify Health launched the first-ever prescription digital therapy for anxiety and depression, giving it a competitive edge over its peers—but if DTx companies want doctors to prescribe their apps, they’ll need insurers on their side.

The news: Omada Health launched Omada Insights Lab, an initiative that aims to use data science to optimize the clinical efficacy and behavioral design of its digital therapeutics (DTx) products. For context, Omada Health offers DTx for a range of chronic conditions and preventative health.