Author Health Files for IPO Following $115M Series A to Expand Mental Health and Substance Use Care for Seniors

“Author Health will become the center of your mental health journey, enabling you to live a more fulfilling and healthier life.”

As stated on its official website, Author Health.

Katherine Hobbs, CEO of Author Health, explained that the name “Author Health” stems from the idea of helping patients “define the lives they want.” “You are the author of your own life story,” she said. “Life may look a certain way today, but you have the power to write new chapters and create a different tomorrow. Our company’s mission is to support people and empower them to author that story.”

Author Health is a platform dedicated to providing comprehensive care and treatment for Medicare Advantage patients with substance use disorders and severe mental illness. Founded in 2023, the company is headquartered in Boston, Massachusetts, USA. Dr. Katherine Hobbs, CEO of Author Health, is a psychiatrist and former health insurance executive. Dr. Gary Gottlieb, Chair of the Executive Committee, is a geriatric psychiatrist, Professor of Psychiatry at Harvard Medical School, and former CEO of Massachusetts General Hospital.

By partnering with Medicare Advantage plans, Author Health aims to help as many seniors as possible combat serious mental illness and substance use disorders, while expanding its service footprint nationwide to benefit more patients.

Data from the Commonwealth Fund shows that one-quarter of Medicare beneficiaries (individuals aged 65 and older or those with disabilities in the United States) suffer from mental illness, yet only 40% to 50% receive treatment. This substantial gap in diagnosis and treatment services is precisely the void that Author Health aims to fill.

Author Health employs a team-based collaborative approach, bringing together physicians, therapists, nurses, and community health workers to deliver personalized, comprehensive care for patients who are disconnected from the traditional healthcare system. Via telephone, video, or in-person consultations, it provides services including assessment and treatment planning for mental health disorders and substance use, medication management, psychotherapy, crisis intervention, and referrals.

Patients can register and schedule mental health services through Author Health’s website or mobile application, with the autonomy to select their preferred service modality, appointment time, location, and provider. During the course of care, providers conduct a comprehensive assessment of the patient’s condition and mental status, then formulate a personalized treatment plan based on the findings—which may include pharmacotherapy, psychotherapy, and lifestyle modifications—and further discuss the implementation of this plan with the patient.

During the implementation of the treatment plan, service providers regularly communicate with patients to monitor symptom changes, adjust medication dosages, and provide psychotherapy. Meanwhile, service providers collaborate with other team members to deliver more comprehensive care. For instance, community health workers employed by Author Health can engage in face-to-face interactions with patients, offering technical assistance and psychological counseling. Such support can be provided in the patient’s home, at a primary care office, or in other settings. After receiving a series of mental health services, patients provide final evaluations regarding the effectiveness of and satisfaction with the services. Service providers also review the treatment process and outcomes with patients, offer advice and guidance, and arrange for follow-up referrals or subsequent visits.

Author Health adopts a service model that integrates online consultations with offline care, addressing the labor shortage in the behavioral health sector. In clinical practice, MDs are the scarcest resource, typically reserved for patients with the most complex and difficult-to-treat conditions. Through telemedicine, however, they can now serve a broader population, allowing ordinary patients to access this high-quality medical expertise. Furthermore, this model successfully combines premium medical resources with “interpersonal relationships”—the foundation of behavioral change—enabling patients to connect with healthcare providers anytime and anywhere, and receive personalized, comprehensive treatment within their communities and outside traditional hospital or institutional settings.

Author Health services were launched through a pioneering partnership between Author Health and Humana Inc. (NYSE: HUM), a healthcare company, in collaboration with CenterWell Senior Primary Care in the southeastern United States. The Author Health team boasts over 13 years of experience in public markets, operations, and healthcare, along with an elite team of leading clinicians, including Alicia Romeo, MD, specializing in geriatric psychiatry; John Taylor, MD, Executive Medical Director; and Maykel Luna Concepcion, MD, who focuses on adult psychiatry, addiction medicine, and internal medicine.

As its partner, Humana, which was named the Best Overall Medicare Advantage Plan Company of 2023 by U.S. News & World Report, intends to apply its forward-looking approach in care service innovation to behavioral health to overcome the limitations of the current system. CenterWell Senior Primary Care is a comprehensive primary care center specifically designed for seniors, providing personalized care and dedicated to helping each patient lead a healthier and happier life through support for their mind, body, and spirit. With shared visions and leading professional expertise, the collaboration among the three parties was a natural fit. By partnering with them, Author Health can share risks and rewards with its partners while improving the quality and cost-effectiveness of medical services.

In the realm of behavioral health treatment, Author Health specializes in providing diagnostic and therapeutic services for older adults and other individuals suffering from severe mental health conditions. Its scope of care encompasses a wide range of psychiatric disorders, including depression and anxiety, schizophrenia and psychotic disorders, bipolar disorder, Alzheimer’s disease, and other forms of dementia. However, Author Health’s patient care extends beyond mental health alone.

The article “Association between Mental Disorders and Subsequent Medical Conditions,” published in The New England Journal of Medicine in April 2020, points out that most mental disorders lead to subsequent health problems. Individuals with severe mental illness and substance use disorders often suffer from comorbid conditions and health issues such as diabetes, hypertension, and cardiovascular disease. To address this issue, Author Health has deeply integrated its services with primary care.

Primary Care refers to basic, comprehensive, continuous, and patient-centered medical services provided within the community. It encompasses not only disease treatment but also disease prevention and rehabilitation promotion. By integrating behavioral health treatment with primary care and other medical and social services, Author Health enables better management of patients’ conditions and facilitates gradual stabilization. This healthcare delivery model improves the quality of life for patients and their caregivers, reduces the incidence of emergency medical interventions and hospitalizations, and thereby generates cost savings for value-based healthcare plans.

On June 28, 2023, Author Health completed a $115 million Series A financing round. The round was led by General Atlantic, a leading global growth equity firm that provides capital and strategic support to growth-stage companies, with participation from Flare Capital Partners, which funds early-stage and emerging healthcare technology companies.

This funding will help Author Health expand its team, advance its technology, and explore new market opportunities, while establishing more partnerships with other insurance and healthcare companies to increase access to high-quality services for seniors and other vulnerable populations.

Currently, Author Health’s agreement with Humana operates on a fee-for-service model. However, Katherine Hobbs stated that Author Health aims to transition to a value-based care model, focusing on both behavioral and physical health outcomes, such as alleviating depressive symptoms and improving glycemic control in diabetes management. At present, Author Health serves Medicare Advantage patients in South Florida, with Humana as its inaugural client. Looking ahead, Author Health expects to expand its services to Medicare Advantage and Special Needs Plan (SNP) beneficiaries in other regions by early 2024.

According to data from the 2018 White Paper on Mental Health of Urban Residents in China, 16.1% of the population in China (nearly 230 million people) suffer from varying degrees of psychological issues. Data from the same year indicates that among the more than 200 million individuals with psychological problems, anxiety disorders and depression had the highest prevalence rates, reaching 4.98% and 3.59% respectively, making them the most common conditions seen in psychiatric outpatient clinics. A study published in the prestigious medical journal The Lancet pointed out that approximately 173 million people in China suffer from mental illnesses, including anxiety, depression, and obsessive-compulsive disorder, among which 158 million have never received professional treatment.

According to the latest data released at a press conference held by the National Health Commission in June 2022, China had 5,936 mental health medical institutions. Currently, many domestic healthcare companies are continuously strengthening their efforts in the treatment of mental disorders and mental health issues.

In 2020, Manlang Medical formally established its presence in China. Leveraging the mature clinical service offerings and operational systems of Luye Medical Group’s 18 specialized mental health institutions in Australia, and with ongoing support from Australian experts in clinical care, psychology, and management, Manlang Medical has established seven facilities in Shanghai, Shenzhen, Guangzhou, and Xi’an. Committed to introducing Australia’s distinctive evidence-based therapeutic programs and integrated healthcare service models to China, Manlang Medical aims to develop a personalized, integrated, evidence-based treatment system for mental and psychological health tailored to the Chinese population. At the inaugural Mental Health Puci Forum, which opened on July 14, 2023, Manlang Medical was recognized as a “Demonstration Unit” by the National Alliance of Specialized Mental Health Institutions, becoming the only private specialized medical institution to receive this distinction.

Hangzhou Xingyuan Intelligent Biotechnology Co., Ltd., established in April 2021, leverages scalp electroencephalogram (EEG) signals and heart rate variability (HRV) through wearable devices such as brain-computer interfaces (BCIs) to provide auxiliary diagnosis, treatment, and screening for mental disorders. Its products target patients with mental disorders, enabling rapid screening for depressive and anxious symptoms. Xingyuan Intelligent has developed a BCI system specifically for mental health screening, and its products are currently distributed to the consumer market primarily through large-scale psychological counseling institutions. On June 5, 2023, Xingyuan Intelligent secured an angel round of financing amounting to several million RMB, with investors including Brinc, Linrun Venture Capital, and Qingrong Venture Capital.

Ancare Psychology (ancare) is a chain brand under Hangzhou Ancare Medical Technology Co., Ltd., specializing in mid-to-high-end medical mental health services, and has received strategic investment from Sinopharm Capital, a subsidiary of the Fortune 500 company Sinopharm Group. Since its establishment in 2015, Ancare Psychology has expanded its offline chain to include more than 30 institutions, comprising over 5 psychiatric and psychological specialized hospitals and more than 7 clinical psychology specialized clinics. It has established a presence in 18 cities across China, with a team of over 200 full-time outstanding psychiatrists and a rigorously selected network of more than 3,000 psychological counselors. Additionally, it pioneered the BPS-DPP evidence-based service model in China.

According to the "In-depth Analysis of the Development of China's Psychiatric Medication Industry and Research Report on Future Prospects (2022-2029)," the total market size of psychiatric medications in China increased from RMB 14.02 billion in 2016 to RMB 29.51 billion in 2021, with a compound annual growth rate (CAGR) of 16%. The report "Mental Health Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028" discloses that the global mental health market is expected to grow at a CAGR of 3.4% from 2023 to 2028, reaching USD 508.9 billion by 2028.