Kooth shares soar on second US contract win
( ), a UK digital mental health platform, has announced today that it has been selected as the primary vendor partner by the California Department of Health Care Services. The company will help deliver the state's digital mental well-being platform for children and young adults (ages 13-25) as part of California Governor Gavin Newsom's $4.7 billion investment in youth behavioral health, the Master Plan for Kids' Mental Health, and the Children and Youth Behavioral Health Initiative.
Under the contract, Kooth will provide services integral to the Behavioral Health Virtual Services Platform, a new technology-enabled services solution, for all children, youth, and families in California. The platform is one of 15 workstreams within the CYBHI. Kooth was selected as the primary vendor after vetting 450 providers with existing digital behavioral health platforms and content.
As part of the contract, Kooth will be working with the DHCS and the youth of California to extend Kooth's existing platform with a mobile app and additional capabilities.
The service is expected to launch in January 2024.
Tim Barker, Chief Executive Officer of Kooth, said: "This contract has the opportunity to be a step change in both our work in the US and indeed more broadly as we continue to grow and scale our user base to help ever more people. It also highlights the clear value our partners see in our expertise, with an unmatched 15 years of operating experience and evidence allowing us to be a world leader in our field. We will now work with the DHCS to agree the terms of this contract and begin the set up needed to allow us to launch in January. We are very excited to bring more news to the market when we are able to do so."
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This is another major milestone for Kooth on its path to US expansion, building on its previous contract win with the State of Pennsylvania in October last year. The US market is set to welcome Kooth with open arms, with the company’s digitalised and free services helping to alleviate strain on healthcare systems, while also helping patients avoid costly medical bills.
Kooth’s contract with the DHCS is timely, given ahat a staggering two-thirds of young people coping with major depression in California currently do not, or are unable to, receive treatment. Kooth provides a variety of services that aim to achieve early risk recognition, connect users with the most suitable practitioners, and minimise waiting periods for support, all of which will help to address the unmet need for mental health support for young people across California.
Overall, the healthcare industry is expected to witness a rising trend in delivering efficient mental health care through digital platforms, with Kooth at the forefront of this movement. The news of Kooth’s US contract win was welcomed by investors, with its shares rising as much as 39%.
With the company noting that it has already identified additional opportunities in the key US market, make sure to follow Kooth to keep up to date with the latest news and updates .
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