Cityblock Health has entered into a definitive agreement to acquire Homeward Health in an all-stock transaction, while also raising $116 million in Series E financing led by General Catalyst. The combination brings together two value-based care companies focused on populations covered by government-sponsored health programs, significantly expanding Cityblock's reach across Medicaid, Medicare Advantage and dual-eligible populations.
Following the transaction, the combined organization will serve nearly 200,000 members nationwide and generate approximately $2.2 billion in annualized revenue, representing 77% year-over-year growth. Homeward contributes nearly 50,000 attributed members and a rural-focused care delivery model built around communities that often face limited access to physicians and healthcare facilities. Its existing relationships with regional health plans, including Blue Cross Blue Shield of Michigan, will also expand Cityblock's presence in Medicare Advantage.
Cityblock plans to integrate Homeward's clinical and regional infrastructure with its technology-driven care model. Central to that strategy is CORE, its proprietary Care Orchestration and Resourcing Engine, which analyzes longitudinal clinical and social data to identify individual care gaps and predict the interventions most likely to address them. The platform is designed to move beyond broad risk stratification by directing clinical and care management resources toward specific patient needs before they escalate into more costly episodes of care.
The company is also increasingly using conversational AI and workflow automation to reduce administrative burdens on care teams. Cityblock says its automated systems have resolved more than 42,000 routine member calls and returned more than 44,000 hours of capacity to clinicians and care managers in 2026. Expanding these capabilities across Homeward's rural population could help the combined organization manage a larger number of complex patients while maintaining a high-touch care model.
The acquisition positions Cityblock to build a broader value-based care platform spanning both underserved urban and rural populations. With approximately 120 million Americans receiving coverage through government-sponsored healthcare programs, the company sees a substantial opportunity to use integrated clinical care, social support and AI-enabled care coordination to improve outcomes while managing healthcare costs.
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