Prime Highlights
- Cityblock Health plans to acquire Homeward Health to expand its care model into rural US markets.
- The combined companies will serve nearly 250,000 people and target a wider government-funded healthcare market.
Key Facts
- Cityblock Health provides technology-enabled care for Medicaid and dual-eligible populations.
- Homeward Health has provided care to more than 50,000 rural patients across 50 counties.
Background
Cityblock Health plans to acquire Homeward Health in an all-stock deal as it looks to expand its healthcare services into rural parts of the US. The financial terms of the deal were not disclosed by the firms.
The deal will bring the two companies’ combined reach to nearly 250,000 people. Cityblock said the combination could help it serve a wider share of the more than 120 million Americans covered by government-funded healthcare programmes.
Cityblock focuses mainly on Medicaid and dual-eligible members in urban areas, while Homeward specialises in rural healthcare. The deal will combine Cityblock’s technology and care platform with Homeward’s network of rural providers and local care services.
Cityblock also raised $116 million in a Series E funding round led by General Catalyst. Thus far, the company has raised almost $900 million. It said its annualised revenue has reached $2.2 billion, up 77% from a year earlier.
The company currently serves nearly 200,000 members across more than 10 states. Its services include primary care, behavioural health, chronic disease management, mobile urgent care and care delivered at home.
Homeward was founded in 2022 to address gaps in rural healthcare. It has provided care to more than 50,000 rural patients across 50 counties, working with about 5,000 providers.
The acquisition comes as healthcare providers and insurers face tighter government funding, rising medical costs and pressure on Medicare Advantage payments. Cityblock said these conditions could increase demand for value-based care, which aims to improve patient outcomes while controlling costs.
The company plans to expand its technology and care model to rural Medicare Advantage and dual-eligible members after the acquisition.
