Cityblock to acquire Homeward Health, secures $116M Series E. Cityblock Health plans to acquire rural healthcare provider Homeward Health and has raised $116 million to expand its value-based care model to rural and Medicare Advantage populations. Cityblock, a value-based provider, plans to acquire rural healthcare provider Homeward Health in an all-stock transaction and has raised $116 million in Series E funding, it announced on Thursday. New York City-based Cityblock offers clinical care, behavioral health care and social care in patients' homes, virtually and in community-based clinics. It primarily serves Medicaid and dual-eligible populations. The company's AI-powered operating system aggregates physical, behavioral and social health data to provide care teams with predictive insights into members. Homeward, meanwhile, is a value-based care company supporting rural patients through in-home and virtual visits. It connects patients to transportation services, nutritional and lifestyle support, home and community assistance and chronic condition assistance. The company serves nearly 50,000 members and has relationships with payers including Blue Cross Blue Shield of Michigan and Priority Health. presented by What if health plans could identify member decline before an avoidable hospitalization occurs? Real-time clinical visibility into long-stay SNF members uncovers risk earlier and drives better outcomes. "Cityblock and Homeward are mission-aligned organizations serving complex, complementary populations... For us, Homeward adds a major growth vector in Medicare Advantage and, for the first time, the operating model to go rural at scale," Mike Roaldi, Cityblock's president, told MedCity News. Homeward will maintain its current brand to ensure continuity for members and the company's CEO, Dr. Jenny Schneider, will remain connected with Cityblock as a "trusted advisor," Roaldi added. The acquisition is supported by Cityblock's $116 million Series E round, which was led by General Catalyst. This funding will be used to invest in the combined platform, including optimizing operations, the care model, technology and data infrastructure, according to Roaldi. The announcement comes amid Medicaid cuts and tightening Medicare Advantage reimbursement rates, affecting both Cityblock and Homeward members. presented by By reducing administrative burden and redesigning workflows around human needs, it creates space for what matters most: connection between clinicians and patients. "We think the answer to funding pressures in government programs isn't to retreat from them - it's to get radically better and more efficient at delivering outcomes for the people who depend on taxpayer-funded healthcare," said Toyin Ajayi, CEO and co-founder of Cityblock Health, in a blog post. "That's exactly why we're going to serve more Medicare Advantage members alongside continuing to serve individuals who are dual-eligible and those who receive Medicaid. We believe the same AI-native, outcomes-first model that has enabled us to win in Medicaid is exactly what rural Medicare Advantage and dual-eligible populations need too." Roaldi added that the acquisition of Homeward brings Cityblock one step closer to building a national operating system for government-funded healthcare at scale. "Cityblock brings a decade of care model and data infrastructure; Homeward brings proven rural reach. Together, we can serve complex populations regardless of geography - and we'll keep investing in the technology and care model that make that possible, whether through acquisition, partnership, or organic growth," Roaldi said.

Cityblock Health has acquired Homeward Health in an all-stock deal and secured $116 million in Series E funding led by General Catalyst. The acquisition expands Cityblock's reach from urban Medicaid populations into rural healthcare markets. The combined entity will serve nearly 250,000 people across urban and rural communities. Brooklyn-based Cityblock currently serves almost 200,000 members with annualised revenue of $2.2 billion, up 77% year-over-year. The company has raised approximately $1 billion to date. Homeward Health, founded in 2022 by former Livongo executives, has delivered care to more than 50,000 rural patients across 50 counties. The acquisition pairs Cityblock's data platform with Homeward's rural provider relationships. Cityblock launched in 2017 from Alphabet's Sidewalk Labs, focusing on integrated health and social services for marginalized communities. The company operates in over 10 states, partnering with Medicaid plans and health systems.