Perspectives: As police step back from mental health calls, telepsychiatry steps forward

TTA has an open invitation to industry leaders to contribute to our Perspectives non-promotional opinion and thought leadership area. Our hot topic today is community mental health crisis response, and the role that telepsychiatry can play in an integrated approach to  prevent crises from escalating. Today’s contribution is from Andy Flanagan of Iris Telehealth. As CEO, he drives strategy, operations, and culture, leveraging his extensive healthcare and leadership experience. A four-time CEO with a background in global health tech, he holds degrees from Northwestern and the University of Nevada, Reno.

Law enforcement is stepping back from mental health crisis response. Sacramento County Sheriff recently announced deputies will no longer respond to non-criminal mental health calls, citing a recent Ninth Circuit Court ruling that questioned police involvement where no crime has occurred.

Sacramento isn’t alone. In Austin, Texas, the police union president declared that “the Austin Police Department must stop responding to mental health calls,” as reported by Fox 7 Austin.

Law enforcement is underequipped for mental health crises. But who should respond instead? How do we build a system that connects people in crisis with appropriate care?

The answer lies in creating integrated crisis response systems that combine trained mental health professionals, community resources and telepsychiatry to ensure people in crisis get immediate access to appropriate care, regardless of location or timing.

The current crisis

In Austin alone, police responded to 34,000-52,000 mental health calls annually since 2020. Nationally, the burden is immense, with behavioral health-related emergency department (ED) visits doubling from 2011 to 2020, now reaching approximately 47 visits per 100 people.

When law enforcement withdraws from mental health response, this pressure shifts to already strained emergency departments. Without alternative systems in place, people experiencing mental health crises have nowhere to turn except hospital EDs, leading to overcrowding, extended wait times and less-than-optimal care environments for behavioral health needs.

First responders face an impossible task. Most receive minimal mental health training — often just 40 to 120 hours — compared to the years of specialized education mental health clinicians receive. This gap creates dangerous situations like the DeSilva case that prompted the Ninth Circuit ruling.

A better approach

Communities are discovering more effective models for mental health crisis response. The nationwide 988 Suicide and Crisis Lifeline provides immediate access to trained counselors, while integrated crisis response systems — like Austin’s approach of offering mental health services as a 911 option — show promising results. When Austin callers select mental health services, they’re connected with Integral Care clinicians who conduct assessments, provide support and deploy mobile crisis teams when needed. According to Fox 7 Austin, 87% of these calls are resolved without police involvement.

Specialized mental health professionals are the cornerstone of these systems. These experts bring the right training and perspective to de-escalate situations, connect individuals to appropriate resources and provide trauma-informed care. Unlike law enforcement, their approach centers on therapeutic intervention rather than control and containment.

Technology bridges access to specialized services. Telepsychiatry enables immediate access to mental health expertise, even when providers aren’t physically present. Digital platforms can connect crisis responders with psychiatrists for real-time consultation, ensuring appropriate assessment and care planning from the first point of contact. This is particularly valuable for rural communities with provider shortages, where in-person mental health specialists may not be readily available.

The role of telepsychiatry

Telepsychiatry platforms connect patients directly to behavioral health expertise before crises escalate. Today’s technology enables immediate access to qualified mental health professionals through smartphone apps, community centers and EDs. Modern systems incorporate AI-driven analytics to optimize patient scheduling and resource allocation without replacing clinical judgment.

The benefits are immediate for patients who receive specialized care within 30-45 minutes versus traditional ED visits taking 2+ hours. Healthcare providers gain psychiatric expertise without maintaining 24/7 in-house specialists, addressing a critical gap where 54% of U.S. hospitals have no psychiatrists available for ED and inpatient consultation services. When telepsychiatry is effectively implemented, health systems experience reduced boarding times, lower admission rates and improved emergency department throughput. One hospital avoided more than $1.7 million in boarding costs with a 281% return on investment, while another reduced psychiatric patient length of stay by 70%.

Technology works best when enhancing human expertise, not replacing it. A recent Iris Telehealth survey found 41% of respondents would feel comfortable receiving treatment recommendations from AI-powered mental health tools, and 33% would leverage these tools if integrated into services they already use (think telehealth platforms or primary care visits).

As law enforcement rightfully steps back from mental health crisis response, we must step forward with integrated solutions that combine human expertise and technology. Telepsychiatry represents one critical piece of a comprehensive approach connecting people in crisis with appropriate care.

For Perspectives editorial and additional opportunities such as supporting TTA through advertising, contact Editor Donna.

Funding/M&A roundup: DarioHealth’s $25M, Innovaccer buys Humbi AI, Percipio Health launches with a $20M Series A, Iris Telehealth buys innovaTel

DarioHealth pulls another multi-colored rabbit out of the hat. This time, it’s a $25.6 million private placement of 25,605 shares of convertible preferred stock at $1,000 per share “to extend Dario’s cash runway and bolster its financial position enabling the Company to continue executing its current strategic plan”.  The raise is from existing investors with the rest from ‘accredited healthcare investors’ and healthcare sector executives who can presumably hack their way through the terms and conditions of the placement.

Their objective by the end of 2025 is to have an operational positive cash flow run rate from “high-margin, scalable recurring revenues across our B2B and pharma channels.”  With the private placement, Dario has a $40.6 million cash position. Their last raise of $22.4 million, also a private placement, was timed with their complex $30 million (maybe) Twill telementalhealth acquisition in February 2024 DarioHealth release, Mobihealthnews

That strategic plan has changed substantially since 2022, when Dario branched out from MSK therapies to clinically-based interventional care management solutions through apps and consults in cardiometabolic and behavioral health. In 2023, their revenue dropped to $20.4 million to the prior year’s $27.7 million with a slightly reduced net loss of $59.4 million from $62.2 million. This was attributed to changing from a B2B to a B2B2C model. By Q3 2024 the strategy at least on the revenue side seemed to be working, with YTD revenues at $19.4 million, a 16.1% increase over prior year, but an increased loss of  $46.1 million. Release.

Earlier this month, Dario jumped on the GLP-1 prescribing bandwagon with prescribing capabilities announced through a collaboration with MedOrbis. Release

Innovaccer makes third acquisition in a year, Humbi AI. The AI-enabled data analytics company for payer and provider intelligence will combine Humbi AI’s actuarial software, services, and analytics with their Healthcare Intelligence Cloud. Humbi’s data includes Medicare and Medicaid data covering over 200 million lives. Purchase price, funding, and management transitions for the small Tennessee-based company were not disclosed. San Francisco-based Innovaccer, which earlier this month raised $275 million in a rare Series F, purchased Cured and Pharmacy Quality Solutions (PQS) in 2024. Release, FierceHealthcare

Percipio Health launches with a $20 million Series A and a veteran crew. The Plano, Texas-based startup RPM company has developed an app-only platform that monitors health conditions without the use of peripheral devices. It works by collecting multiple health signals daily through vision-based AI biomarkers for vitals and medication monitoring and vocal AI biomarkers for brain health assessments, among others. This provides predictive clinical intelligence for clinicians to assess and provide proactive care for rising and high-risk patient populations. Co-founders Eric Rock and David Lucas co-founded Vivify Health, a RPM platform now owned by Optum and earlier  MEDHOST, an emergency department medical records and workflow solution now part of HealthTech Holdings. Percipio’s raise came from investors including UPMC Enterprises, WAVE Ventures, Labcorp, and First Trust Capital Partners, LLC.  Release

Iris Telehealth acquires innovaTel by Quartet. Iris specializes in providing behavioral health services to health systems and community health clinics. innovaTel adds telepsychiatry staffing through its national network of qualified psychiatrists, psychiatric nurse practitioners, and licensed clinical social workers. According to the release, Iris also becomes one of the largest telepsychiatry providers in the US. Psychiatric service coverage has been moving towards a crisis point for years, with the Federal Health Resources & Services Administration (HRSA) calculating that nearly 160 million Americans live in areas designated as having a mental health provider shortage.  Psychiatry is also the third oldest specialty, with doctors’ average age at 55 (Psychiatric Times).  Purchase price, funding, and management transitions were not disclosed. Release