Cityblock Health, a healthcare provider for lower-income communities, announced today the completion of a $160 million Series C funding round and a valuation of over $1 billion. New Cityblock 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 more. The investment round brings Cityblock's total equity funding to $300 million, as they look to grow their 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, to attract and onboard talent across its product, 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 is a transformative, value-based healthcare provider focused on improving healthcare outcomes for marginalized communities. They provide members with primary care, behavioral health, and services to address the social determinants of health, virtually and in-person.
Their 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 or the ability to safely care for yourself and others.
"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, General Catalyst. "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."
"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.
They provide care to 70,000 members in four major U.S. metro areas, with high member engagement and NPS scores of high 80s to 90s across its markets. Over the past year, Cityblock 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 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. "We cannot turn a blind eye to a healthcare system that cycles vulnerable communities through frequent ER visits and hospital stays. 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."
"We believe in better healthcare outcomes for all, not just for the few. We've proven that better healthcare outcomes for marginalized communities can also be aligned with driving down healthcare costs and driving waste out of the system," said Dr. Toyin Ajayi, Cityblock Health co-founder and Chief Health Officer. "We're thrilled to have the support of General Catalyst, Wellington Management, and our existing investors as we look forward to this next phase of growth."
About Cityblock Health
Founded in 2017, Cityblock Health is a transformative, value-based healthcare provider for Medicaid and lower-income Medicare beneficiaries. They partner with community-based organizations and health plans to deliver medical care, behavioral health, and social services virtually, in-home, and in their community-based clinics. Modern technology is at the core of the model, with custom-built tools to support every facet of care team operations and member interactions. Cityblock currently serves 70,000 members in New York, Connecticut, Massachusetts, and Washington, DC. For more information, visit cityblock.com.
