BROOKLYN, New York—Cityblock Health, a healthcare provider that delivers primary care, behavioral and social services to lower income areas, has signed a definitive agreement to acquire Homeward Health in an all-stock transaction, alongside a $116 million Series E led by general catalyst.
"We're doing this from a position of real momentum: we now serve almost 200,000 members across the country, and our annualized revenue is $2.2 billion—up 77% year-over-year, and more than 4x what it was at our last fundraise in 2021," the company said. "We are positioned to be the leading outcomes-based provider platform serving government programs: caring for populations who are covered by Medicare, Medicaid or both—and in particular those with the most complex and difficult-to-manage needs. That’s the position we’ve spent almost a decade building toward, and we certainly don’t intend to slow down now."
Cityblock said Homeward has built a company that when combined with Cityblock’s experience serving urban Medicaid and dual-eligible populations, means they now have the scale and capability to reach deeper to serve the nation’s 120 million people receiving government-funded healthcare.
"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," the companies said.
Cityblock said since its last fundraiser in 2021, it has increased revenue by 323%, improved corporate opex as a percent of revenue by 64%, scaled from five to 18 customers, improved earnings before interest, taxes, depreciation and amortization margins by 81% and delivered positive operating margins in our markets.