About the Business
Cityblock Health is a healthcare app company that provides physical, mental, and social services to people on Medicaid and Medicare beneficiaries. Additionally, the startup company provides primary and behavioral health services. Additionally, the business considers conditions outside of the clinic, such as transportation, housing, and food, as part of a person’s health. Through their services, patients have access to in-home, community-based, or virtual care from healthcare providers.
The app business was founded in 2017 by Iyah Romm, Toyin Ajayi, and Bay Gross. Cityblock Health is partnered with eligible EmblemHealth members in New York, ConnectiCare members in Connecticut, Tufts members in Massachusetts, and CareFirst BlueCross BlueShield members in Washington DC.
New Funding for Cityblock Health
Today, the healthcare startup company announced the app business raised $192 million in an extension of a Series C funding round. Tiger Global, a new investor in the startup company, led the latest round. Previous investors in the app business also participated, including Goldman Sachs Asset Management, Wellington Management, Redpoint Ventures, Echo Health Ventures, and several others.
Forbes reported Cityblock Health initially began its Series C round in December, raising $160 million, valuing the startup company at over $1 billion. The additional funding announced today completes the round. The app business did not disclose its new valuation. In addition, the startup company currently has 75,000 members and had a revenue run rate of $400 million in 2020.
In the press release, Iyah Romm, co-founder and CEO of the startup app company, said, “We're incredibly proud and grateful that some of the world’s best and brightest healthcare minds have joined us...But more than anything, we’re excited for what this level of capital investment means for our member population. It’s clear that there is increased awareness of this massive problem of health inequity. We’re starting to see urgency from investors and industry leaders alike.”
With the new funding, Cityblock Health will accelerate deployment of its community and value-based care model nationwide to help underserved and vulnerable communities.
In a statement emailed to Forbes, Scott Shleifer, a partner at Tiger Global, added, “Healthcare is in the early innings of a shift towards new and powerful delivery models, including virtual care, care in-home, and value-based payments...Cityblock is at the forefront of these trends, delivering life changing outcomes for a massive population of underserved individuals.”
COVID-19 Effects on Communities
While the healthcare disparities between vulnerable and invulnerable communities already existed, the COVID-19 pandemic exacerbated these differences.
The Centers for Disease Control and Prevention, or CDC, reported that although non-Hispanic Black people account for 12% of the United States (US) population, they accounted for 34% of COVID-19 related deaths. Furthermore, the CDC also stated that discrimination, healthcare access and utilization, education, income, and wealth gaps, and housing conditions are all contributing factors that put racial and ethnic minorities at an increased risk of contracting and dying from COVID-19.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.