Call9, a start-up that provided medical tools and a platform to video chat with a doctor for nursing home residents, is shutting down operations, CEO Dr. Timothy Peck confirmed to CNBC.

The company had raised $34 million in venture capital however struggled to secure additional capital to scale its business and handle the excessive value of operating a well being-care enterprise. The corporate said it laid off about 100 workers in the process of winding down.

Peck mentioned he’ll proceed to operate part of the business, Call9 Medical, which employs medical doctors and gives medical care. And he’s trying to doubtlessly “pivot” the remaining belongings into a brand new firm, which might be related in its give attention to bringing expertise to nursing houses however with a number of tweaks.

Call9′s business model concerned utilizing a mix of technologies, including an iPad, so that nurses might get medical advice from Call9′s docs. In theory, that would keep patients from ending up in the emergency room if they didn’t need to be there, which is an extremely expensive outcome. The plan was to make deals with insurance plans to separate the savings from avoiding an outcome like that, as well as to sell to nursing homes.

There are other start-ups promoting outcomes-based providers to insurers with extra success. Probably the most notable examples is Cityblock, an organization that spun out of Alphabet and focuses on offering health-care services to low-income individuals on Medicaid in urban environments. Cityblock has raised greater than $85 million from a few of Call9′s investors, together with 8VC

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