The story below comes from Crain’s Health Pulse.
It is very interesting that venture capital firms would be interested in setting up services that link MC plans and health providers to services that include housing, transportation and employment as well as track consumers’ needs and referral patterns while coordinating with CBOs. It’s in 30 other states. – Toni
Healthify gets $6.5M in round led by BlueCross BlueShield fund
Manhattan startup Healthify will announce Tuesday that it has raised $6.5 million in a Series A funding round led by BlueCross BlueShield Venture Partners.
The company offers a software platform that helps managed-care plans and health care providers find available social services and coordinate referrals. Healthify operates on the premise that factors beyond health care, including access to food, housing, transportation and employment, all affect the health of a given population.
“There are many services already out there that help with all of these needs, but the ability to navigate this web is broken,” said Manik Bhat, the company’s co-founder and chief executive.
Healthify allows customers to search for available services, track patients’ social needs and referral patterns, and coordinate with community-based organizations, documenting when referrals are completed.
“It introduces a level of accountability into a process that’s never had one,” said Bhat.
Manhattan venture capital firms Primary Venture Partners and Activate Venture Partners also participated in the Series A round after contributing to a seed round for Healthify last year. The startup, which has raised $9.5 million since its founding in 2012, now operates in 30 states.
The company charges its customers based on how many staff members are using its product. Insurers and providers can make further agreements with Healthify to distribute licenses to social service agencies with which they coordinate care.
Healthify has about 30 employees. Bhat declined to disclose total revenue but said it has doubled in the past nine months. Local clients include New York-Presbyterian, NYU Langone Medical Center and Aetna.
Other companies making it easier for people to find community services include One Degree in San Francisco and Purple Binder in Chicago.
The investment made sense for BCBS Venture Partners because of the need for plans to manage members’ medical costs, which are often driven by nonmedical factors, said Binoy Bhansali, vice president at Sandbox Industries, which manages the fund’s investments.
“There were a lot of companies that have data about all the social services that exist in a market,” he said. “Not that many have the vision of helping payers manage nonmedical costs in the way Healthify does.” —J.L.