Just months after raising $192 million, Cityblock has netted another $400 million in funding, according to a report by STAT News.
SoftBank, which now has stakes in multiple health tech companies, led the series D round, according to anonymous sources cited by STAT. It would propel Cityblock’s valuation to $5.7 billion.
A Cityblock spokesperson confirmed with MedCity News that the company had raised a new round of capital.
As a multitude of primary care startups raise funds for concierge practices or subscription memberships, CityBlock is taking a different approach. The New York-based company offers primary care services to Medicaid and dual-eligible patients, many of whom aren’t served well by the current healthcare system. It also provides behavioral health services, and helps connect people to community support, such as transportation, food and stable housing.
Cityblock plans to put the new funds toward its goal of serving 10 million members by 2030, including scaling its operations, technology and care services, a spokesperson wrote in an email.
Currently, the company operates in five states: New York, Connecticut, Massachusetts, North Carolina and Washington, D.C. With its earlier series C round, the company also planned to expand to Ohio.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Cityblock is also looking to broaden its health services to include maternity and pediatrics. Nearly half of all births in the U.S. are covered by Medicaid.
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