Nursing home EMS startup Call9 announces plans to close

The Brooklyn-based startup is laying off roughly 100 employees.
By Laura Lovett
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Brooklyn-based Call9, a company focused on connecting nursing home residents with emergency room doctors, is joining the list of fallen digital health startups as it shared with CNBC its plans to wind down its services. 

Founded in 2015, the startup was created based on the idea that nursing home residents are some of the most frequent emergency room visitors, but among the least equipped for a stressful emergency room visit. The service combined in-person care with remote telemedicine. A specialist trained by Call9 would be hands-on at the nursing facility, while a doctor calls in through a video function. 

While the bulk of the service will be unavailable, Call9 CEO Dr. Timothy Peck told CNBC that one section, made up of physicians, will continue to operate. 

Call9 has raised a substantial amount of capital in the past, including a $24 million raise in 2017 and a $10 million raise in 2016

WHY IT MATTERS

With the shutdown, Call9 is laying off approximately 100 employees, Peck told CNBC.

But the closure will also impact the skilled nursing facilities where Call9 had been implemented. On the company’s website it recorded 142,000 telemedicine visits conducted and 11,000 patients who were treated via its services. In April the company had announced an expansion into its third market in Albany, New York. 

THE LARGER TREND

While digital health startups have lately been plentiful on the market, more than a handful are starting to shut their doors. Late last week Canadian wellness platform Carrot Rewards announced plans to pull down its app-based service due to a lack of investment. 

Another notable closure in the digital health space was mental health-focused platform Lanternwhich announced its plans to shut down last July.