December 10, 2020 - Cityblock Health, a healthcare provider focused on marginalized populations with complex needs, has raised $160 million in an investment that values the company at more than $1 billion.
New investor General Catalyst led the round, with participation from crossover investor Wellington Management and support from major existing investors, including Kinnevik AB, Maverick Ventures, Thrive Capital, Redpoint Ventures, and others.
The investment round brings Cityblock's total equity funding to $300 million, as the startup looks to grow its footprint to democratize access to community-based integrated care in a more than $1.3 trillion market.
The new funding will be used to support Cityblock's national expansion in caring for Medicaid and dually-eligible communities and to invest in engineering, data science, clinical, and business operations to launch new service lines, and to continue investing in its proprietary technology platform, Commons.
Launched in 2017 out of Alphabet's Sidewalk Labs and anchored in a first partnership with EmblemHealth, Cityblock was founded as a groundbreaking care model designed to meet the complex health and social needs of underserved communities. The company combines primary care, behavioral health, and chronic disease management services that address social determinants like transportation, housing, and access to healthy food.
Cityblock landed a $54 million series B funding round in July.
Cityblock's model reflects an underlying philosophy that improving health outcomes and minimizing systemic healthcare inequities requires fundamentals that address the root effects of poverty, like having access to nutritious food, the company said.
"In just a few short years, the Cityblock team has shown that if new care delivery models align with the needs of the communities they serve, there is opportunity to measurably improve healthcare outcomes for the most vulnerable among us," said Hemant Taneja, managing director at General Catalyst in a statement.
"By building their solutions on a modern technology stack with an orientation towards impact, we're confident this team has the potential to scale to serve millions of people across the country in new and better ways," he said.
"The pandemic is making it abundantly clear that we need to address the deep health inequities in this country," said Cityblock Health board member and former CMS administrator Andy Slavitt. "We need a Cityblock in every community that we have ignored for too long and where the odds stack against people to live a healthy life. This investment takes us one step closer to making that a reality."
Cityblock's integrated care teams include doctors, nurses, advanced practice clinicians, behavioral health specialists, licensed clinical social workers, and community health partners, and leverage close partnerships with existing healthcare providers and community-based social services organizations.
Cityblock provides care to 70,000 members in four major U.S. metro areas. The company reports that its members have seen reductions in in-patient hospital admission rates and improvements in quality outcomes, keeping people healthier and driving down costs across the board, while more than doubling membership and revenue, year-over-year.
The company declined to share details of its revenue but said it had tripled in the past year, according to Bloomberg.
"The devastating impact of Covid-19 has been a painful reminder of the vulnerability of lower-income communities and communities of color," said Iyah Romm, Cityblock Health co-founder and CEO in a statement.
"We believe that new models of care delivery, rooted in preventative care and augmented with social services, are one major path forward to righting the injustices of our healthcare system. This starts with listening to our members, extends through changing payment models to create sustainability for primary care providers, and building technology to democratize access to the care models that we are building," Romm said.
By Heather Landi
Posted on Fiercehealthcare.com
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