Healthify, whose mission is to change the way healthcare addresses community health, today announced the close of a $2.5 million seed round led by a syndicate of investors including Primary Venture Partners (PVP), Milestone Venture Partners (MVP), Acumen, Kapor Capital, and Blue Cross and Blue Shield of Kansas. Healthify works with managed care organizations and healthcare providers to better connect patients with community services to resolve unmet social needs. The company already provides services in 24 states and raised the money to expand its coordination feature set into a nationwide network of insurers, healthcare providers, and community agencies.
Unaddressed social needs, like food insecurity and housing instability affect millions of Americans and cost an estimated $85 billion a year in additional healthcare spending. Healthify’s platform empowers healthcare staff to find and match the appropriate community-based agencies for high-risk patients to improve overall health outcomes.
“We are incredibly humbled to have such a great group of VCs, impact investors, and strategic investors supporting our next growth phase. This financing allows us to get our tools to more people in need and build the infrastructure to fully coordinate services between healthcare entities and community services” said Manik Bhat, Healthify’s CEO.
A Positive Shift in Healthcare Policy
Heathify is well-positioned to support a shift in healthcare policy that has put greater focus on social determinants of health since the passage of the Affordable Care Act in 2010.
At the federal level, the Centers for Medicare and Medicaid Services (CMS) Innovation Center announced the creation of the Accountable Health Communities (AHC) model, which is a $157 million funding opportunity for healthcare providers to address the misalignment between clinical care and social services in order to improve patient outcomes.
Policy is moving forward at the state level, too. For example, New York is undergoing a Medicaid Delivery Reform effort (DSRIP) to create collaborative systems that better integrate and address social needs. Healthify currently supports several of the DSRIP participants. With this financing, Healthify will be in an excellent position to meet the needs of the AHC model and other enterprise systems participating in these emerging healthcare payment models. “Healthify impressed us from the beginning with its rapid growth, high customer satisfaction, and impressive team. We are confident it is uniquely positioned to help the most demanding customers in the healthcare industry solve a critical public health problem.” says Todd Pietri, general partner at Milestone Venture Partners.
Connecting Healthcare Organizations with Community Services
“We are in the midst of an exciting period of transformation in the healthcare world, six years removed from implementation of the Affordable Care Act,” says Brad Svrluga, general partner at Primary Venture Partners. “Smart policy has created incentives for payers to simultaneously drive outcomes and efficiencies through the healthcare value chain. We know that existing payers and providers cannot drive that transformation on their own, and that’s where intelligent startups like Healthify come in. We couldn’t be more excited and proud to partner with this remarkable team of entrepreneurs, who are building a valuable enterprise company with an unquestionable social impact.”
The latest funding will allow Healthify to refine its offerings and secure its position as the de facto organization helping healthcare organizations find community services, tailor referrals, integrate social needs into electronic health records, and use analytics to understand the impact of social determinants on health outcomes.
With these systems securely in place, Healthify will be in a unique position to change the standard for healthcare delivery to tens of millions of vulnerable populations enrolled in Medicaid and Medicare. “Healthify is helping those in greatest need better address the root causes of their health challenges. The company’s work has the potential to not only shift the care coordination model for these patients, but to change the way social determinants of health are addressed across the healthcare system,” says Amon Anderson, Associate Director at Acumen. Healthify’s growth continues to prove that addressing social needs is the best response to the evolving value-based healthcare landscape.