Cityblock Health has raised $116 million in Series E funding and signed a definitive agreement to acquire Homeward Health, extending the healthcare company’s reach across urban and rural communities.
The Series E was led by General Catalyst. Homeward will be acquired through an all-stock transaction, with financial terms of the acquisition undisclosed.
The two developments come as Cityblock reports significant growth. The company now serves nearly 200,000 members and generates $2.2 billion in annualized revenue, up 77% year over year and more than four times its revenue at its previous fundraise in 2021.
Founded in 2017, Cityblock provides value-based healthcare for people covered by Medicaid, Medicare and both programs, with a focus on populations with complex health and social needs.
Its model combines primary care, behavioral healthcare, chronic disease management and social services with technology designed to help coordinate care.
The company works with national and regional health plans and health systems across more than 10 states.
Since 2021, Cityblock says it has expanded from five to 18 customers, increased revenue by 323% and improved EBITDA margins by 81%. The company also reports positive operating margins in its markets.
Expanding From Urban to Rural Healthcare
The acquisition of Homeward adds another dimension to Cityblock’s growth.
Homeward was founded in 2022 by healthcare executives including Jennifer Schneider and Amar Kendale to address gaps in healthcare access in rural communities. Its model combines local providers, virtual care, mobile care units and in-home monitoring.
The company has built a rural-first Medicare Advantage model serving nearly 50,000 members, along with relationships with health plans including Blue Cross Blue Shield of Michigan.
Cityblock has developed much of its experience serving urban Medicaid and dual-eligible populations. Bringing the two organizations together expands its capabilities across Medicaid, Medicare Advantage and dual-eligible populations in both urban and rural markets.
According to Cityblock CEO and co-founder Toyin Ajayi, the combination gives the company the scale and capabilities to pursue a much larger market: approximately 120 million Americans who receive healthcare through government-funded programs.
Scaling Technology Alongside Care
Technology is also playing a growing role in Cityblock’s expansion.
The company has been investing in AI tools and its CORE care-orchestration platform to identify individual member needs, recommend interventions and reduce administrative work for clinical teams.
Cityblock President Mike Roaldi told Fierce Healthcare that additional scale will provide the company with a larger member base across which it can continue developing and testing its AI-enabled tools.
The Series E financing is expected to support further investment in the company’s AI capabilities.
The Homeward acquisition will combine that technology infrastructure with Homeward’s rural provider relationships and care delivery capabilities.
Cityblock’s Next Phase of Growth
The transaction represents Cityblock’s first acquisition and comes nearly a decade after the company launched out of Alphabet’s Sidewalk Labs.
It may also establish a model for additional expansion.
Ajayi said Cityblock plans to use what it learns from the Homeward transaction to continue growing its platform both organically and through acquisitions.
That expansion would build on a company that has already raised more than $900 million in outside capital and has grown into one of the larger value-based healthcare platforms serving government-funded populations.
With Homeward, Cityblock gains a foothold in rural Medicare Advantage alongside its existing experience in urban Medicaid and dual-eligible care, broadening the populations and geographies its platform is built to serve.
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