Cityblock buys Homeward Health, raises $116M to push into rural care
What's the deal? Cityblock Health, which provides care for urban Medicaid and dual-eligible members, has signed a definitive agreement to acquire Homeward HealthDealroom has a profile for this one. Try Dealroom → in an all-stock deal, the company said on Aug. 20, 2026. Financial terms were not disclosed. Homeward, founded in 2022, runs a rural-first Medicare Advantage model with nearly 50,000 members.
What's the endgame? The acquisition pairs Cityblock's data and care-orchestration platform with Homeward's rural provider relationships. Combined, the companies will serve nearly 250,000 people and aim to reach the 120 million Americans on government-funded healthcare, chief executive officer and co-founder Toyin Ajayi wrote in a blog post.
The money: Brooklyn-based Cityblock also closed a $116 million Series E round led by General Catalyst, bringing total funding to roughly $1 billion. Its 2021 round of $400 million valued it at about $5.7 billion.
By the numbers: Cityblock serves almost 200,000 members across more than 10 states, with annualised revenue of $2.2 billion, up 77% year over year. It combines primary care, behavioural health, and chronic disease management, and works with payers to cut hospitalisations and medical spend.
Why now? Rural healthcare gaps are wide. About 60 million people — one in five Americans — live in rural areas, and 80% of rural counties lack enough primary care providers, according to the National Rural Health Association's policy institute.
Homeward, also backed by General Catalyst, was launched by former Livongo executives Jennifer Schneider and Amar Kendale to fill those gaps with mobile care units and in-home monitoring. Homeward built "a rural-first Medicare Advantage model that has deep ties with plans like Blue Cross Blue Shield of MichiganDealroom has a profile for this one. Try Dealroom →," Ajayi wrote.
The signal: The deal reflects consolidation among value-based care startups chasing the same government-funded population from different ends — urban and rural — as both companies bet scale is what makes those hard-to-reach markets pay.
Read more: Fierce Healthcare
Image credit: Homeward
