Philly’s NeuroFlow expands its Veterans Affairs reach with the acquisition of Arlington’s Capital Solution Design

Philly healthcare technology company NeuroFlow announced today that it had acquired Arlington-based Capital Solution Design.

Center City-based NeuroFlow’s software allows clinicians to see data from wearable devices, assign tasks such as meditation or journaling for patients to complete at home, and send automated motivational emails, as well as alert those in crisis to emergency services. For its part, the Virginia company manages the Behavioral Health Lab (BHL) and BHL Touch, a measurement-based care system that is used by the US Department of Veteran Affairs.

BHL and BHL Touch systems have been used by the VA for over 15 years at 150 healthcare facilities. Adam Pardes, COO and cofounder of NeuroFlow, told Technical.ly that the company’s leaders were excited to have this connection with the VA, especially having a veteran cofounder in CEO Christopher Molaro and NeuroFlow’s own past involvement with the VA. Earlier this year, the company won $500,000 from the Mission Daybreak Challenge, designed to help the VA come up with new suicide prevention strategies for veterans.

“We have a lot of live clients within the Department of Defense, but had really just scratched the surface with VA,” Pardes said. “And now with this acquisition, we take over really the leading measurement-based care tool in the VA.”

Pardes said NeuroFlow’s leaders has been aware of BHL and BHL Touch for a while because of their existing reputation within the VA. They spent time getting to know the company and discussing potential partnership opportunities over the last year. They determined that partnering through an acquisition would better integrate both companies’ offerings and ultimately be beneficial for all of their clients. Pardes declined to share the terms of the deal.

Having access to the VA’s health system, the largest in the United States, and the company’s integration capabilities were two of the biggest draws of this deal, he said. With this acquisition, NeuroFlow also gains VA-specific Cerner and Vista electronic health record integration expertise.

With the deal, Capital Solution Design’s team of about five people have moved over to NeuroFlow, which counts 110 full-time equivalent employees. Pardes said the company’s team was one of its strongest assets, especially because they were also mission driven in their work with the VA.

“We clicked pretty much right off the bat. So we’ve been onboarding them over the last month or so as NeuroFlow employees, but they’re also continued to operate as a wholly owned subsidiary of NeuroFlow because we wanted to make sure that there wasn’t any disruption for their team or their clients,” he said. “But also it’s been a pretty smooth process and we’ll continue that throughout the course of this year.”

Those employees will not be relocated, but remain based in the greater DC area, where they have an office space. Pardes believe it will be helpful to NeuroFlow to have a stronger presence in that region, especially as leadership travels there for policy work.

“I think it gives credence to our differentiation positioning as a company. They were running a strong business and felt that joining the NeuroFlow umbrella was a way to amplify their impact,” he said. “This affirms that as well that we’re in a really strong position to make an impact on the mental health crisis.”

In a statement, Capital Solution Design’s cofounders agreed.

“NeuroFlow’s commitment to innovation and their leadership’s vision for moving healthcare from reactive to proactive is what makes this a win-win for everyone, including veterans who deserve the latest advancements in healthcare,” Kent Reynolds said, while John Boles added: “With the reach of NeuroFlow’s clients, supporting 15 million lives, and opening doors for greater access to screening, we’re going to help a lot of people.”