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.
“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.
“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.
Credit: SB, Getty Images
