The mental health crisis in the United States has been well-publicized but not well addressed. More than a quarter of adults in the U.S. suffer from a diagnosable mental disorder in a given year, and more than a third of the population — some 122 million people — lived in an area with a shortage of mental health professionals in 2021, according to USAFacts, which analyzes government data.
Covid has made it worse, with the exception that the use of telehealth appointments — those conducted largely via video conference — has rapidly expanded. That's where Austin-based Iris Telehealth Inc. comes in. The company, founded in 2013 by Dr. Tarik Shaheen, partners with big health care providers to give patients quicker access to psychiatrists who can diagnose patients, develop treatment plans and prescribe medications.
Now, Iris is planning to expand its clinical operations, tech capabilities and its headcount using a new $40 million series B investment led by Concord Health Partners and Columbia Pacific Advisors, both of which are Iris customers.
Iris helps health care providers set up tele-psychiatry operations by setting standard hours and matching them with psychiatrists. Its teleconferencing and documentation technology complies with the Health Insurance Portability and Accountability Act and is overseen by a clinical operations manager. For hospitals, that means staff can more quickly escalate a patient and connect them to a specialist, which are often difficult to find. The company currently works with about 200 hospitals and community health centers.
"We're focused on clinically sound, serious mental illness care, the highest acuity, most complex moment in time for a patient," CEO Andy Flanagan said.
Iris is profitable and has about 150 corporate employees, Flanagan said. It operates remotely. It plans to grow to roughly 250 employees within a year. The company also has about 500 clinicians in its medical group. Iris competes with companies such as Boston-based Amwell (NYSE: AMWL), which went public in 2020.
Flanagan welcomes competition in tackling such a large problem.
"It's not a zero-sum game," he said. "I wish there were 1,000 companies like us to address this issue."
An increased awareness of mental wellbeing during the pandemic has been a strong tailwind for Iris, Flanagan said.
"The big lift with Covid is the destigmatization that's starting to happen in behavioral health and mental health," he said. "It's okay to have a challenge."
While the company operates in a serious space, its work culture aims to put people first while also having a little fun. One of its internal mottos is "Suck Less Every Day" to help motivate teams to do their best work.
"It's a little cheeky, but it gives us space to be human and make mistakes and balance our lives and our professional careers, and feel like you're doing good while you're doing well," Flanagan said.
