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Federally Certified Well being Facilities (FQHC) are essential to offering main care. They cut back the boundaries to healthcare for tens of millions of People in underserved communities by offering entry no matter price, insurance coverage protection, language, and proximity. These neighborhood well being facilities are ruled by the federal authorities, qualify for Medicare and Medicaid reimbursements, they usually’ve been propelled by the Inexpensive Care and Restoration Acts. Yuvo Well being offers the expertise and infrastructure to handle the executive and managed care capabilities of those FQHCs. There’s been a rising pattern in the direction of value-based care and with the platform, neighborhood well being facilities are capable of embrace this new mannequin by dealing with contracting with payors to ship preventative, quite than reactive care. This finally results in higher affected person outcomes, elevated high quality of care, and optimized spending. FQHCs serve greater than 30M people per 12 months or just below 10% of the US inhabitants.
AlleyWatch caught up with Yuvo Well being CEO and Cofounder Cesar Herrera to study extra concerning the enterprise, the corporate’s strategic plans, newest spherical of funding, which brings the entire funding raised to $27.5M, and far, far more…
Who have been your buyers and the way a lot did you increase?
We’ve raised an oversubscribed $20.2M Sequence A spherical of financing. Led by Mastry Ventures, with participation from earlier buyers together with AlleyCorp, AV8 Ventures, and New York Ventures, and new buyers together with HLM Enterprise Companions, Route 66 Ventures, VamosVentures, and Social Innovation Fund.
Inform us concerning the services or products that Yuvo Well being affords.
Yuvo Well being companions with well being facilities to leverage new fee techniques, scalable infrastructure, and partnerships to supply a significant seat on the desk inside the value-based care (VBC) ecosystem. In doing so, well being facilities acquire the liberty — and the incentives — to supply compassionate care for his or her whole neighborhood.
What impressed the beginning of Yuvo Well being?
Launched in January 2021, Yuvo Well being was based in New York Metropolis by a totally BIPOC workforce with shared first-hand experiences of the ability of high quality care, and a typical aim to convey honest, high quality care to underserved communities. Your complete Yuvo Well being workforce is now on a mission to make sure each Neighborhood Well being Middle (CHC) can present compassionate care to their whole neighborhood.
How is Yuvo Well being completely different?
Yuvo Well being is particularly tailor-made for Federally Certified Well being Facilities (FQHCs) and their distinctive wants. And, in contrast to many different “value-based care enablement” options on the market, Yuvo Well being uniquely takes its mannequin a big step ahead by really bearing the complete draw back threat for our FQHC companions.
What market does Yuvo Well being goal and the way large is it?
Yuvo Well being helps CHCs and FQHCs that present main care to underserved communities within the U.S. The 1,400 FQHCs nationwide serve greater than 30 million sufferers yearly, representing greater than $30 billion in income. That mentioned, coverage studies have proven a chance for FQHCs to serve a further 20 million who nonetheless don’t have entry to main care throughout the nation.
What’s what you are promoting mannequin?
Yuvo Well being acts as a risk-bearing entity for FQHCs. After we companion with FQHCs, we conform to shoulder the draw back threat for them. We then contract straight with well being insurers throughout all strains of enterprise (Medicaid, Medicare, Industrial) for numerous threat preparations. By opening up this extra income stream, we not solely gasoline our personal progress, however set up monetary progress and stability for our FQHC companions, as nicely.
How are you making ready for a possible financial slowdown?
Healthcare, notably Medicaid and Medicare, is counter-cyclical to the financial system. This usually means extra enrollment in Medicaid, as an illustration, and elevated monetary strain on States to handle price. As such, there’s higher alternative for our FQHC companions to take part and exhibit their worth on this ecosystem.
What was the funding course of like?
The funding course of undoubtedly took longer than our final one. Our seed spherical took a few month to shut, whereas our Sequence A took round 5 months. FOMO wasn’t as a lot of an element for buyers we had talked to, and as such, they have been spending further time to be extra thorough of their diligence. It was definitely a double-edged sword: The extended interval meant extra time away from our firm’s day-to-day operations. Nevertheless, the due diligence additionally meant buyers have been asking the suitable questions and took time to essentially perceive the enterprise. Moreover, I had extra time to vet buyers and perceive the extra worth they might present. In consequence, I’m far more assured within the worth related to these on our cap desk, which is a good feeling.
What are the largest challenges that you just confronted whereas elevating capital?
Frankly, we are attempting to unravel an extremely difficult drawback (value-based care) in a steadily forgotten phase (FQHCs) of a fancy, regulated market (healthcare). There are few corollaries to which buyers can meaningfully examine us. Which means, we’re not the “Uber” or “Airbnb” of healthcare. On prime of that, we don’t have a predictable SaaS ARR income mannequin, which has been troublesome for buyers to grapple with.
What elements about what you are promoting led your buyers to write down the test?
Primarily based on suggestions from our buyers, probably the most compelling elements have been a mix of the next:
- Our sensible, pragmatic answer
- Plain market want. FQHCs would want to entry a particular and significant income stream (VBC) with out Yuvo Well being.
- Our proficient workforce. Now we have an unparalleled workforce, with a number of many years of straight related expertise on this area.
- Deep connection to our mission. Many people have direct, lived expertise being FQHC sufferers ourselves, and plenty of others have expertise serving FQHCs and their sufferers. This isn’t only a enterprise for us, however quite a deeply private mission to assist FQHCs and their sufferers.
What are the milestones you propose to attain within the subsequent six months?
With this capital, we’re targeted on constructing the expertise and population-health infrastructure to assist our transition to world capitation.
What recommendation are you able to provide corporations in New York that do not need a recent injection of capital within the financial institution?
In case you are about to lift capital on this market and/or promote to prospects, be sure you present that your product is a “need-to-have” versus a “good-to-have” to your viewers. Additionally, keep in mind that enterprise capital will not be the one car accessible to fund your progress and improvement, so be artistic (e.g., enterprise debt, line of credit score, authorities applications wherever related).
The place do you see the corporate going now over the close to time period?
We’ll leverage this funding to broaden from the New York market into Ohio (and past), whereas additionally transitioning to simply accept full-risk preparations on behalf of our FQHC and CHC companions.
With a plethora of commuting choices within the metropolis, how do you usually get to work every day?
I’m blessed that our workplace is only some blocks away from my condo. And on condition that I want to be above floor, you’ll both see me strolling to work, taking the cross-town M23 bus, or counting on a reliable Citi Bike wherever I have to go, rain or shine or via the bitter chilly.
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