Cityblock Health's model to disrupt primary care appears to be resonating with investors in a big way.
The startup, a healthcare provider focused on marginalized populations with complex needs, raised $400 million in a late-stage funding round that brings the company’s valuation to $5.7 billion, Stat reported Friday, citing sources familiar with the matter.
The round was led by SoftBank, Stat's Erin Brodwin reported.
The capital infusion comes just four months after Cityblock’s last raise of $192 million. The company, a healthcare provider for Medicaid and lower-income Medicare beneficiaries, also got a massive funding boost in December 2020 to the tune of $160 million. With this funding round, the company has raised about $900 million to date.
A spokeswoman for Cityblock confirmed the latest funding round to Fierce Healthcare but would not disclose how much was raised.
"We can confirm that Cityblock has raised a new round of capital as we continue to accelerate our plans to empower more people across the country more quickly," the spokeswoman said. "Millions of marginalized and lower-income people across the U.S., including those who receive their healthcare through Medicaid plans, continue to lack sufficient access to integrated, community-based health services. We are leveraging this investment to reach more people and have an even greater impact."
The company is continuing to execute on its vision of serving 10 million members by 2030, which means scaling its operations, technology and care services, the spokeswoman said.
There is a growing list of trendy startups looking to disrupt primary care, but, while many companies focus on healthy, relatively well-off patients, Cityblock focuses on underserved communities.
Cityblock Health's strategy is to meet the complex health and social needs of this population by taking care back to the neighborhood level. It does this by partnering with local community-based organizations to help its members get access to primary care, behavioral health care and social services.
The company launched in 2017 out of Alphabet’s Sidewalk Labs and anchored in a first partnership with EmblemHealth. Cityblock combines primary care, behavioral health and chronic disease management services that address social determinants like transportation, housing and access to healthy food.
Cityblock's model reflects an underlying philosophy that improving health outcomes and minimizing systemic healthcare inequities require fundamentals that address the root effects of poverty such as having access to nutritious food, the company said.
The company'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.
Data from Cityblock's first member cohort pointed to a 15% reduction in emergency room visits and a 20% reduction in in-patient hospital stays. While delivering these outcomes, Cityblock is experiencing 3x year-over-year revenue growth, company executives reporter back in March.