• Model solves disjointedness between behavioral health and physical health coordination, the weakest spot in the care continuum
• Major US health plan backing the partnership for broad implementation to set a new standard
• Insights-driven, care-coordination-backed triage model will smooth the transition for patients after hospitalization or emergency services to the right next level of care in the outpatient setting
• The new model makes behavioral health able to participate in value-based care agreements, including those that have shared risk

Pathway Healthcare, a leading provider of behavioral health and substance use disorder treatment across the southeastern United States, and Watershed Health, the company driving patient care coordination across the healthcare ecosystem, today announced a strategic partnership to ease transitions after hospitalization or emergency services, which is a notoriously disjointed and high-risk moment in a patient’s care journey. Moving people in behavioral health crises from acute care to the right next level of care—outpatient, 1:1 therapy, group care, residential programs, or other—has been historically rife with complexities and without best practice guidelines to inform placements.

Backed by a major US health plan and enabled by Watershed’s real-time care coordination platform, Pathway will serve as the preferred outpatient behavioral network to support patients after hospitalization or emergency service. Leveraging a best practice, metric-focused triage workflow, the model is designed to support value-based care (VBC) initiatives and quality measures performance improvements in programs such as Medicare STAR Ratings and Healthcare Effectiveness Data and Information Set (HEDIS). As payers and providers are better able to control and improve patient outcomes, for instance, with the closing of a 7-day HEDIS metric for follow-up care post-discharge, there is immense upside both financially and clinically with the avoidance of unnecessary hospitalizations and timely access to the most appropriate level of care.

“Behavioral health has operated in deep information silos without the real-time insights and coordination needed to meet patients’ needs at their most critical moments, such as in transitions after a crisis,” said Lindsay Lane, vice president of development at Pathway Healthcare. “With Watershed Health, we are building a bridge between care teams and the health plan—empowering people to act swiftly and ensure that high-risk behavioral health patients receive timely, appropriate treatment that surpasses what has been possible before. The new model offers a replicable framework for improving outcomes at scale for health plans and providers seeking smarter, faster, more accurate, and equitable care delivery.”

Lack of coordination between physical and behavioral health systems contributes to poor outcomes and high costs. People suffering from mental health disorders impose a dramatically higher cost on health systems and society compared to individuals without such conditions; estimates are between two and three times higher. Fragmentation and disjointedness are some of the most pressing issues in behavioral health, as treatment is spread across commercial, county, and state providers, which are wholly disconnected. For too long, the industry has lacked connected and timely infrastructure that enables appropriate and effective care transitions. Providers are forced to defer to patient anecdotes and manual coordination with outdated modalities like fax and phone, wasting endless hours and sacrificing accuracy in treatment decisions. Hospitals often don’t know where to send a patient on discharge, rely on outdated provider lists, or are unable to match insurance plans, among a plethora of other issues. As well, health plans are tasked with tracking hospital follow-ups after discharge as part of quality ratings; yet, across the board, this is a difficult and inaccurate process. The information black holes, delays in care, and, oftentimes, subsequent mistakes breed hospital readmissions and can produce negative patient outcomes.

“Watershed focuses on transitions to allow for coordinated care to exist regardless of who you are, what you need, and where you are going, and a core component is mental health. We are excited to be enabling a true integrative care model by not just sharing insights, but by activating insights to aid in some of people’s hardest moments,” said Effie Carlson, CEO of Watershed Health.

Pathway Healthcare operates in six states and is known for its integrated behavioral health and substance use treatment services, working closely with primary care providers, courts, and community organizations to serve thousands of patients across the Southeast.

Watershed serves as both the care coordination and referral platform to Pathway with automated document sharing and collaboration tools, including HIPAA-compliant access from hospitals, providers, home health, and others. Parties can seamlessly communicate, effectively implement care plans, and make well-informed triage and treatment decisions on Watershed at key points of care and transition.

About Pathway Healthcare

Pathway Healthcare is a leading behavioral health company dedicated to providing comprehensive, accessible outpatient care for mental health and addiction recovery. With locations across the Southeast, we deliver a full continuum of services—including psychiatric care, therapy, telehealth, intensive outpatient programs (IOP), and case management—tailored to each individual’s unique journey. What sets Pathway apart is our commitment to compassionate, flexible, and sustainable treatment that supports both immediate recovery and long-term wellness. As a forward-thinking provider, we continually expand our services and embrace innovative partnerships to ensure every person has access to the care they need. For more information, visit www.pathwayhealthcare.com and follow on LinkedIn.

About Watershed Health

Watershed Health is driving patient care coordination across the healthcare ecosystem. With a focus on reducing healthcare costs, improving patient outcomes, and enhancing operational efficiency, Watershed transforms uncoordinated care into actionable workflows and insights, ensuring all members of a patient’s care team are aligned and informed. This comprehensive approach supports proactive and informed decision-making, facilitates collaboration, and drives measurable improvements in quality care and health equity. For more information, visit www.watershedhealth.com, and follow on LinkedIn.

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