A Westlake Village company that builds behavioral health technology for hospitals has raised $14.2 million in venture funding, betting that its mix of virtual psychiatry, on-demand consults and billing tools can help health systems manage a mental health crisis playing out in emergency rooms nationwide. Precise Behavioral Inc. announced the round on Friday, adding fresh capital to a platform already used across a national network of hospitals, skilled nursing facilities and correctional facilities.
The round was led by A1 Health Ventures and included Ziegler Link-Age Fund, Converge Capital Partners, and Granite Financial Holdings, according to the Los Angeles Business Journal, which first reported the raise. Granite Financial Holdings operates as an investment affiliate of Blue Cross of Idaho, a health plan that covers more than 600,000 members across the state, according to PR Newswire. Ziegler Link-Age Fund, a specialized venture fund focused on senior living and aging-focused health technology, already has a governance stake in the company: Ziegler Senior Vice President Jenny Poth sits on Precise Behavioral's board of directors, per Ziegler.
Precise Behavioral was founded in 2022 by Dr. Nitin Nanda, a geriatric psychiatrist and healthcare entrepreneur, per the report. Nanda previously built Aligned Telehealth, which he sold to American Well Corp., known as Amwell, in 2019 for an undisclosed sum. That deal created what was described at the time as the largest enterprise telepsychiatry platform in the country, adding more than 1,600 behavioral health providers to Amwell's clinician network, according to Healthcare Dive.
A Platform Built to Plug Hospital Gaps
Precise Behavioral's platform includes a virtual psychiatry and ambulatory clinic, on-demand clinical consults, collaborative care for integrating behavioral health into primary care, and a post-discharge emergency room follow-up solution, the Los Angeles Business Journal reported. The company also provides specialized revenue cycle management and billing services, helping client health systems streamline reimbursement and maintain regulatory compliance. It delivers both in-person and virtual care, and has delivered more than 100,000 patient encounters to date, per the same account.
Some of that technology traces back to an October 2022 acquisition of Rose Health, a Washington, D.C.-based mental health startup that built an AI-enabled patient engagement and mood-monitoring app, according to Technical.ly. Rose Health was founded in 2018 to develop digital tools for tracking depression and anxiety, the outlet reported. How that AI-driven engagement stack navigates clinical safety guardrails, and how quickly Precise Behavioral can scale in-person clinical coverage alongside its virtual network amid a national psychiatric workforce shortage, remain open questions.
Hospital Partners With National Reach
Precise Behavioral has announced partnerships with CommonSpirit Health and Prime Healthcare Services Inc., the Los Angeles Business Journal reported. CommonSpirit Health, based in Chicago, operates 158 hospitals nationwide with more than 16,000 acute-care beds, making it the second-largest health system in the country by hospital bed capacity, according to Becker's Hospital Review. Prime Healthcare, headquartered in Ontario, runs 54 hospitals across 14 states, including more than 30 facilities in California, following its March 2025 acquisition of eight Illinois hospital facilities, per the same publication.
Ahead of its latest funding round, Precise Behavioral had already inked agreements with four California healthcare systems covering 200 hospitals, 30,000 beds, 100,000 providers and 24 million patients to deploy its AI-driven behavioral health software, according to a Precise Behavioral press release distributed via PR Newswire. Those agreements targeted early detection and streamlined hospital workflow integration, the release noted.
Why Hospitals Are Buying In
The urgency behind these deals is rooted in a widening emergency-room crisis. A national study published in JAMA in August 2026, which reviewed electronic health record data across 56 emergency departments, found that 53.6% of admitted medical patients boarded for at least four hours while waiting for an inpatient bed, according to Becker's Clinical Leadership & Infection Control. More than 17% of admitted patients in the study waited over four hours without any inpatient clinical team assuming management of their care, the outlet reported.
Federal billing policy has also created financial incentive for hospitals to adopt integrated behavioral health tools. The Centers for Medicare & Medicaid Services reimburses integrated primary and behavioral healthcare under specific Psychiatric Collaborative Care Model billing codes, including CPT codes 99492, 99493 and 99494 and HCPCS code G0512, which let primary care providers bill for monthly team-based psychiatric consultations, according to the American Psychiatric Association. A 2023 study in the American Journal of Managed Care found that implementing the Collaborative Care Model for primary care patients produced $29.35 per member per month in medical savings without increasing overall net healthcare spending, with reductions driven largely by fewer inpatient stays and emergency room visits.
Executives Point to Profitability and Growth Plans
Karin Botros, managing partner at A1 Health Ventures, said her firm decided to lead the investment round after identifying a fragmented hospital behavioral-health-services market. “No organization has comprehensively addressed the behavioral health needs of health systems and hospitals,” Botros said, according to the Los Angeles Business Journal. She also said Precise Behavioral reached profitability in under three years.
Nanda said behavioral health is among hospitals' greatest operational challenges, and that the additional venture funding will help scale operations. Precise Behavioral Inc. has built a national clinical footprint and plans to expand its services and partnerships with healthcare providers, the outlet reported.
