#USA #Healthcare Funding #Community Care #Zócalo Health #Kenmore

Zócalo Health Secures $15 Million to Enhance Community Healthcare

Zócalo Health, a pioneering primary care provider that leverages technology to deliver community-based medical services, has successfully closed a $15 million Series A funding round. This brings their total funding to $22.75 million, which the company plans to utilize for scaling operations and expanding partnerships within the healthcare sector.

The funding round was oversubscribed and led by EO Ventures, with contributions from Talipot and other investors, including Vamos Ventures, Animo Ventures, Acumen America, Sorenson Ventures, BarronKent, and Kapor Center. Zócalo is capitalizing on this investment to broaden its footprint across the nation, enhance its community workforce, and strengthen partnerships with prominent health plans.

The necessity for this funding is underscored by the increasing pressure on health plans to effectively manage a small segment of members that incur a disproportionate share of healthcare costs. Many of these individuals have complex medical, behavioral, and social needs that have historically made it challenging to engage them in healthcare. Zócalo Health's unique model targets these populations, integrating community-based care teams with virtual clinical services to foster sustained engagement, improve outcomes, and reduce healthcare expenses within value-based frameworks.

Roland Fryer, a founding partner of EO Ventures and a Harvard economics professor, praised Zócalo Health’s innovative model, stating, "Zócalo Health has built a care model that performs in one of the most complex segments of healthcare. It is demonstrating that community-based care, paired with the right operating model, can scale and deliver meaningful results."

In its first year, Zócalo Health showcased impressive operational performance, achieving a remarkable 400% increase in revenue year-over-year. The company expanded its collaborations from two regional health plans in 2024 to over a dozen in 2025 and entered several new markets across multiple states. This growth is largely attributed to their high member retention rates, consistent engagement metrics, and patient satisfaction scores that significantly surpass industry standards.

A Model Designed for Engagement and Retention

At the core of Zócalo Health's success lies their approach to organizing care around community health workers (CHWs), often known as promotoras de salud. These professionals are embedded within the communities they serve, allowing for a level of personalized care that transcends traditional clinic settings. Zócalo Health's teams are interconnected with primary care providers, behavioral health clinicians, and care coordinators. This ensures ongoing support and includes behavioral health as a significant aspect of their services, especially as patients experience heightened stress and anxiety.

By focusing on proactive outreach, frequent communication, and trust-building relationships, Zócalo Health effectively fosters a culture of adherence among high-need members, reducing preventable healthcare usage.

Erik Cardenas, Co-Founder and CEO, highlighted the company's mission: "We built Zócalo Health to consistently engage the patients the system misses. Our model is designed around sustained engagement and outcomes. When you connect and engage high-need members, you change both clinical outcomes and costs."

Leveraging Technology for Enhanced Services

While Zócalo Health places a significant emphasis on community relationships, they also utilize a sophisticated technology platform that ensures seamless care delivery. The platform incorporates artificial intelligence to support frontline personnel, enabling them to serve a larger member base without compromising quality. This allows for better patient connection to care and resources, providing critical visibility into coverage and eligibility around programs like Medicaid.

Zócalo Health collaborates with Medicaid managed care organizations, such as Anthem Blue Cross and Health Net, to deliver services that align with state-led initiatives aimed at creating a framework for comprehensive, community-based healthcare. By engaging high-risk members and maintaining effective retention strategies, Zócalo has positioned itself as a leader in the healthcare sector.

Mariza Hardin, Co-Founder, noted, "Health plans are under pressure to deliver quality care to their most complex members, especially as budgets tighten. We've built a model that directly addresses this challenge, and our next phase is to scale our operations while preserving both performance and the personal, community-oriented touch that defines us."

To discover more about Zócalo Health, including their offerings and target demographics, visit www.zocalo.health.

About Zócalo Health

Zócalo Health provides integrated medical, behavioral, and social services to underserved populations through a community-focused care model that collaborates closely with health plans to improve outcomes and reduce overall healthcare costs.