Cityblock Health, a New York company that provides care for people on government-funded health coverage, raised a $116m Series E led by General Catalyst. It announced the round on 20 August 2026, together with a definitive agreement to acquire Homeward Health in an all-stock transaction.
No other investors and no valuation were named in the sources. The company said it will grow its platform "organically and inorganically", according to HIT Consultant, and did not give a detailed breakdown of how the new funds will be spent.
“The timing couldn't be more critical.”Toyin Ajayi, Co-Founder and CEO, Cityblock Health
The Homeward deal
Homeward Health is a rural-first Medicare Advantage provider with about 50,000 attributed members. Its co-founders are Jenny Schneider and Amar Kendale, and it has ties to Blue Cross Blue Shield of Michigan, according to Healthcare IT Today.
Combined, the two companies serve almost 200,000 members. Cityblock has been focused on urban Medicaid and dual-eligible members, so the deal extends it into rural areas. Financial terms of the acquisition were not disclosed.
Healthcare IT Today put the number of Homeward members at nearly 50,000 and described the model as rural-first.
What Cityblock says about its business
Chief executive Toyin Ajayi wrote in a note on the deal that the timing could not be more critical, and cited about 120 million people who receive government-funded healthcare.
Cityblock reported annualised revenue of $2.2bn, up 77% year on year. Since 2021 it said revenue has risen 323% and the number of customers has grown from five to 18, and it reported positive operating margins in its markets. All of these figures are the company's own.
Cityblock also described a platform called CORE, the Care Orchestration and Resourcing Engine, which ranks care actions for each member. It said the predictions are right 62% to 87% of the time and that AI tools freed 44,599 clinician hours this year, including 42,148 calls handled by AI agents.
The company said its customers grew from 5 to 18 since 2021 and that corporate operating expenses as a share of revenue improved by 64%, with EBITDA margins up 81%. Those are company-reported measures and the sources did not break them down further.
Who invested
General Catalyst is the only investor the sources name. Cityblock's last fundraise before this one was in 2021; Healthcare IT Today referred to it only as a comparison point for revenue growth and gave no amount.
HIT Consultant said the combined company is meant to become the leading outcomes-based provider platform for government-sponsored healthcare.
Why it matters
HIT Consultant described the deal as positioning Cityblock as that outcomes-based platform for government programmes, with Homeward adding a rural Medicare Advantage model to Cityblock's urban one.
Neither source reported Cityblock's headcount. How much of the $116m is cash for operations and how much will support further acquisitions was not stated.
The sources did not say when the acquisition is expected to close.
Company website: cityblock.com