11.8 C
New York
Tuesday, December 1, 2020
Home STARTUPS Health Venture-backed telemedicine startup Call9 is shutting down

Venture-backed telemedicine startup Call9 is shutting down

More than three years ago, we told you about Call9, a young, Palo Alto, Calif.-based telemedicine startup that wanted to reduce unnecessary visits to emergency rooms by those who call 911 most frequently, which is people in nursing homes.

The company’s co-founders — Celina Tenev, a radiology postdoctoral fellow from Stanford, and Timothy Peck, who worked previously as an emergency medicine physician and faculty at Harvard Medical School — met while working part-time for a now-defunct startup and shared a disbelief that the patient experience still typically includes spending several hours in an emergency room.

Unfortunately for Tenev and Peck and investors who wound up plugging $34 million into the startup —  including Index Ventures, YC, the YC Continuity Fund, Index Ventures, 8VC and 23andMe co-founder Anne Wojcicki — Call9 is shutting down after failing to raise further funding. About 100 people are losing their jobs as a result.

The company, which provided medical equipment and a video platform (via iPad) that enabled doctors to talk with nursing home residents, says its struggle owed to the country’s very slow adoption of “value-based care” — in which doctors are paid based on patient outcomes — rather than the current “fee-for-service” model on which the healthcare industry still relies largely. As CNBC reported last week, Call9’s business plan involved landing deals with insurance plans to split the savings from avoiding an outcome like an unnecessary emergency room visit.

Still, the outlet noted that other startups are selling outcomes-based services to insurers with more success. Among them: Cityblock, a company that spun out of Alphabet and provides healthcare services to low-income people on Medicaid. Cityblock has raised roughly $85 million, including from 8VC.

Source: TechCrunch

Follow Us On Facebook, Twitter & Instagram Please Share Your Stories, Press Release & Articles At [email protected]. To Read More News Daily, Subscribe To Our Push Notification at https://www.inventiva.co.in/
This article is automatically sourced by automatic news feeds through online softwares, Inventiva team has not made any modifications and adjustments in the article and is published as it is after giving due credits to its original source.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

The Negative Report Of “RT-PCR Diagnostic Test” Is Mandatory For Travelers! Delhi Slashes The Cost Of RT-PCR Testing for “COVID-19”

As the number of coronavirus cases is increasing every day, many states have mandated a negative RT-PCR diagnostic test report for travelers from Delhi-NCR...

Another MiG-29 Crash, is it time that the Russian Fighter Jets are bid a farewell?

In another tragedy, involving a MiG-29K trainer aircraft crashed in the Arabian Sea on Thursday.  While the one pilot was rescued, the Indian Navy launched...

Get Ready: The Big Bash League is around the corner

With almost nine successful running years, the Big Bash League is back and is all ready to take off on the tenth of December...

GST revenue at Rs 1.04 lakh cr in November

Revenue from Goods and Services Tax (GST) stood at over Rs 1.04 lakh crore in November as against Rs 1.05 lakh crore collected in...

Recent Comments

%d bloggers like this: