Cityblock Health is a healthcare technology company that provides primary care, behavioral health, and social services to underserved communities. The company’s mission is to “deliver radically better care for everyone, especially those who need it most.” In this article, we’ll explore the startup story, history, founders, business model, valuation and investors of Cityblock Health.
Cityblock was founded in 2017 by Iyah Romm, a healthcare executive, Toyin Ajayi, another healthcare executive and Bay Gross, a former Product Manager at Google. The company is headquartered in New York City, and has offices in Brooklyn, the Bronx, and Queens.
Cityblock’s primary care model is based on the idea of “whole person care.” This means that Cityblock providers focus on the whole patient, not just their medical needs. Cityblock providers work with patients to address their social determinants of health, such as housing, food security, and transportation.
Cityblock also offers a variety of behavioral health services, including therapy, medication management, and case management. Cityblock’s behavioral health providers work with patients to address their mental health needs, as well as their substance abuse issues.
In addition to primary care and behavioral health, Cityblock also offers a variety of social services. These services include help with housing, food security, transportation, and employment. Cityblock’s social services providers work with patients to connect them with the resources they need to live healthy lives.
Cityblock is a mission-driven company that is committed to providing high-quality care to underserved communities. The company’s model has been shown to be effective in improving the health of its patients. Cityblock is well-positioned to continue to grow and expand its reach in the years to come.
Here are some of the key features of Cityblock’s model:
- Whole person care: Cityblock providers focus on the whole patient, not just their medical needs. This includes addressing social determinants of health, such as housing, food security, and transportation.
- Integrated care: Cityblock providers work together to provide patients with a coordinated care plan. This includes primary care providers, behavioral health providers, and social service providers.
- Data-driven decision-making: Cityblock uses data to track the health of its patients and to make decisions about care. This data is used to identify patients who are at risk and to provide them with the care they need.
- Technology-enabled care: Cityblock uses technology to make care more convenient and accessible for patients. This includes online scheduling, virtual visits, and mobile apps.
Cityblock’s model has been shown to be effective in improving the health of its patients. A study published in the New England Journal of Medicine found that Cityblock patients had lower rates of hospital admissions and emergency department visits than patients who received care from traditional health plans.
Cityblock is well-positioned to continue to grow and expand its reach in the years to come. The company has raised over $1 billion in funding, and it has a strong team of experienced leaders. Cityblock is also working to expand its model to other cities across the country.
Founding History of Cityblock Health
Cityblock Health was founded in 2017 by Iyah Romm, Toyin Ajayi, and Bay Gross. The founders shared a vision to create a transformative healthcare model that would address the complex needs of underserved and marginalized communities, ensuring equitable access to high-quality care and support. Their collective passion for social justice and a commitment to improving healthcare outcomes for vulnerable populations became the driving force behind the creation of Cityblock Health.
Iyah Romm
Iyah Romm brought a wealth of experience in healthcare and technology to the organization. Prior to founding Cityblock Health, Romm served as the Chief Transformation Officer at Commonwealth Care Alliance, a Massachusetts-based nonprofit healthcare organization. His background in healthcare policy and his work in developing innovative care delivery models laid the foundation for the disruptive approach Cityblock Health would take in the industry.
Dr. Toyin Ajayi
Dr. Toyin Ajayi, co-founder and CEO of Cityblock Health, brought her extensive medical expertise and a deep understanding of the social determinants of health to Cityblock Health. Before co-founding the startup, Dr. Ajayi was the Chief Medical Officer at Commonwealth Care Alliance, where she worked closely with Iyah Romm to drive patient-centered care initiatives. Driven by a desire to make a tangible impact on healthcare disparities, she played a critical role in shaping Cityblock Health’s holistic and community-based care model.
Bay Gross
As the co-founder and Chief Technology Officer, Bay Gross brought his expertise in healthcare technology and data analytics to Cityblock Health. With prior experience at Codecademy and Bridgewater Associates, Gross had a track record of utilizing technology to address complex challenges. His role at Cityblock Health was instrumental in building the platform’s data-driven infrastructure and advanced analytics capabilities.
The Vision and Mission: The founding team’s vision for Cityblock Health was to transform the traditional healthcare system by focusing on the “whole person.” They believed that effective healthcare must address not only physical health but also the social, economic, and environmental factors that impact individuals’ lives and well-being. The mission was clear: to build a sustainable healthcare model that could deliver personalized, comprehensive, and accessible care to underserved communities, breaking down the barriers that hinder access to quality healthcare.
One of the key elements of Cityblock Health’s innovative approach was the creation of Neighborhood Health Hubs. These community-centered health centers were strategically located in underserved neighborhoods to provide easily accessible and comprehensive care to local residents. The hubs were designed to offer a range of services, including primary care, behavioral health support, social services, and community resources, all under one roof.
Since its founding in 2017, Cityblock Health has experienced rapid growth and expansion. The organization secured significant funding from investors, including venture capital firms and strategic partners in the healthcare industry. This financial backing has enabled Cityblock Health to expand its operations, open additional Neighborhood Health Hubs in various cities, and serve an increasing number of patients in need.
Cityblock Health’s innovative model and commitment to addressing healthcare disparities have garnered widespread recognition and accolades. The startup’s impact on patient outcomes, cost savings, and improved care delivery has been acknowledged by industry experts and policymakers alike. Its groundbreaking approach has earned Cityblock Health a reputation as a leading force in transforming healthcare for underserved communities.
Business Model of Cityblock Health
Cityblock Health operates under a business model that revolves around providing comprehensive and community-based healthcare services to underserved populations. The company’s business model is driven by its mission to address healthcare disparities and social determinants of health, with a strong focus on delivering personalized care and improving health outcomes for vulnerable communities. Here are the key elements of Cityblock Health’s business model:
Targeting Underserved Populations: Cityblock Health’s business model is centered around serving underserved and marginalized populations. The organization identifies communities with limited access to quality healthcare and high rates of healthcare disparities. By focusing on these populations, Cityblock Health aims to bridge the gaps in care and provide equitable healthcare solutions to those who need it most.
Community-Centered Health Hubs: A cornerstone of Cityblock Health’s business model is the establishment of Neighborhood Health Hubs in underserved neighborhoods. These community-centered health centers serve as accessible touchpoints for individuals seeking healthcare services. By locating the hubs within the communities they serve, Cityblock Health aims to reduce barriers to access and foster a strong sense of community engagement.
Holistic Care Model: Cityblock Health adopts a holistic care model that considers the social, economic, and environmental factors that impact individuals’ health. This model emphasizes personalized care plans that address each patient’s unique needs and circumstances, recognizing that improving health outcomes requires a comprehensive approach beyond medical treatment.
Value-Based Care and Risk Sharing: Cityblock Health operates on a value-based care model, focusing on outcomes rather than traditional fee-for-service arrangements. This means that the organization is incentivized to deliver high-quality care that improves patient health and reduces healthcare costs. Additionally, Cityblock Health may enter into risk-sharing agreements with payers, where the organization shares financial risks based on predetermined performance measures.
Care Coordination and Interdisciplinary Teams: Cityblock Health’s business model emphasizes care coordination and collaboration among interdisciplinary teams. Patients receive personalized care plans developed by a team of healthcare professionals, including primary care providers, behavioral health specialists, social workers, and community health workers. This coordinated approach ensures that patients receive comprehensive care tailored to their specific needs.
Financial Sustainability and Revenue Streams: Cityblock Health generates revenue through various channels, including reimbursements from private and public payers, health plans, and government programs. The value-based care model and risk-sharing agreements align the organization’s financial incentives with improving patient outcomes, driving financial sustainability and long-term growth.
In conclusion, Cityblock Health’s business model centers around providing comprehensive and community-based healthcare services to underserved populations. Through its holistic care model, community-centered health hubs, data-driven interventions, and focus on social determinants of health, Cityblock Health is making significant strides in transforming healthcare delivery and improving health outcomes for vulnerable communities.
Revenue Streams of Cityblock Health
Cityblock Health generates revenue through various channels, reflecting its commitment to delivering comprehensive and community-based healthcare services while ensuring financial sustainability. Here are the key revenue streams of Cityblock Health explained in detail:
Value-Based Care Reimbursements: One of Cityblock Health’s primary revenue streams comes from value-based care reimbursements. The organization partners with payers, health plans, and government programs that are committed to improving patient outcomes and reducing healthcare costs. Under value-based care agreements, Cityblock Health receives reimbursements based on the quality of care delivered and the health outcomes achieved for its patient population. This model incentivizes the organization to focus on preventive care, early intervention, and care coordination to drive positive patient outcomes.
Risk-Sharing Agreements: In addition to value-based care reimbursements, Cityblock Health may enter into risk-sharing agreements with payers or health plans. These agreements involve sharing financial risks and rewards based on predetermined performance metrics. By sharing risks, Cityblock Health and its partners collaborate closely to achieve specific goals, such as reducing hospital readmissions or managing chronic conditions effectively. Risk-sharing arrangements align the organization’s financial incentives with its commitment to delivering high-quality care, ultimately benefiting both patients and payers.
Government Funding and Grants: Cityblock Health may secure funding from government programs and grants focused on improving healthcare outcomes for vulnerable populations. These funds can support specific initiatives, pilot programs, or research projects aimed at addressing healthcare disparities and social determinants of health. Government funding and grants provide essential financial support to the organization’s mission-driven efforts to enhance the well-being of underserved communities.
Health Plan Contracts: Cityblock Health may negotiate contracts with health plans and insurers to provide healthcare services to their members. These contracts can be fee-for-service arrangements or may involve a combination of fee-for-service and value-based care components. Health plan contracts serve as an additional revenue stream for Cityblock Health, enabling the organization to extend its reach and impact to a broader patient population.
Community Partnerships and Collaborations: Cityblock Health collaborates with various community organizations and social services to address social determinants of health and improve overall patient outcomes. While these partnerships may not directly generate revenue, they are integral to the organization’s business model and mission. By working together with community partners, Cityblock Health can access additional resources and services to support its patient population more effectively.
In conclusion, Cityblock Health’s revenue streams reflect its commitment to delivering personalized and community-based healthcare services while addressing healthcare disparities. The organization’s focus on value-based care, risk-sharing agreements, government funding, and health plan contracts aligns its financial incentives with positive patient outcomes and long-term sustainability.
Valuation, Funding and Investors of Cityblock Health
Here is an explanation of the valuation, funding, and investors of Cityblock Health:
Valuation
Cityblock Health was valued at $5.7 billion in its $400 million Series D funding round in February 2022. This makes it one of the most valuable healthcare technology companies in the world.
Funding
Cityblock Health has raised a total of $1.15 billion in funding over 7 rounds. Its most recent funding round was a Series D round led by SoftBank Vision Fund 2. Other investors in Cityblock Health include Alphabet’s CapitalG, Thrive Capital, and Goldman Sachs.
Series A: In 2018, Cityblock Health raised $20.8 million funding in Series A round led by Maverick Ventures, with significant investments by Thrive Capital and Alphabet’s Sidewalk Labs
Series B: In 2019 Cityblock Health raised $65 million funding in Series B round. New investors 8VC, Echo Health Ventures and StartUp Health also participated in the latest round, as did existing investors including Sidewalk Labs, Thrive Capital, Maverick Ventures, Town Hall Ventures and EmblemHealth
Series C: In 2020, Cityblock Health raised $160 million funding in Series C 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
Series D: In 2021, Cityblock Health raised $400 million in Series D funding round that brings the company’s valuation to $5.7 billion. The round was led by SoftBank
Investors
Cityblock Health’s investors are a mix of venture capital firms and strategic investors. Some of its most notable investors include:
-
- General Catalyst
- Tiger Global Management
- Redpoint
- 8VC
- SoftBank
- Alphabet’s CapitalG
- Thrive Capital
- Goldman Sachs
Cityblock Health’s valuation, funding, and investors are all indicative of the company’s success. The company is well-positioned for continued growth in the years to come.
Here are some of the key factors that have contributed to Cityblock Health’s high valuation:
- The growth of the healthcare technology market: The healthcare technology market is growing rapidly, and this is creating a growing demand for solutions like Cityblock’s.
- The strength of Cityblock’s model: Cityblock’s model has been shown to be effective in improving the health of its patients. This has attracted the attention of investors who are looking for companies that are making a positive impact on the healthcare industry.
- The strong team of experienced leaders: Cityblock Health is led by a strong team of experienced leaders, including Ido Leffler, Toyin Ajayi, and Bayo Ogunyemi. This team has a proven track record of success in the healthcare industry, and they are well-positioned to lead Cityblock Health to continued growth.
Cityblock Health’s high valuation is a testament to the company’s success. The company is well-positioned for continued growth in the years to come.
Also Read: Lyra Health – History, Founders, Business Model & Funding
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