Cityblock inks deal to acquire Homeward Health to move into rural healthcare, lands $116M funding round

Cityblock Health, a company specializing in urban Medicaid and dual-eligible care, has announced its acquisition of Homeward Health, a provider focused on rural healthcare. The merger aims to expand Cityblock's reach to rural markets, where it will serve nearly 250,000 people combined. Cityblock's CEO and co-founder, Toyin Ajayi, noted that this acquisition positions them to cater to the 120 million Americans receiving government-funded healthcare in the U.S. The deal is an all-stock transaction, with financial terms undisclosed.

Both companies have a history of developing scalable care models for underserved populations. Cityblock's data-driven platform will be paired with Homeward Health's rural provider relationships and care models. The acquisition also comes with a significant $116 million Series E funding round led by General Catalyst, bringing Cityblock's total funding to over $900 million.

Cityblock CEO Mike Roaldi expressed that this acquisition puts the company in a strong position to scale its value-based, tech-enabled care model, serving a larger member base and refining its AI-enabled tools for better patient outcomes. Homeward Health, launched in 2022 by former Livongo executives, aims to address rural healthcare disparities by providing care in patients' homes through a multidisciplinary team and mobile units.

The acquisition of Homeward Health strengthens Cityblock's mission to deliver integrated health and social services to underserved communities, particularly in rural areas with limited access to primary care providers.