Medicaid-focused Cityblock acquiring MA business Homeward Health

June 25, 2026 - 04:24

Cityblock Health, a company that provides healthcare services primarily for Medicaid members, is acquiring Homeward Health, a Medicare Advantage-focused organization. The deal brings together two companies that have raised significant venture capital funding but have focused on different government-sponsored insurance programs.

Cityblock has raised approximately $886 million to date, while Homeward Health has raised around $72 million. The acquisition allows Cityblock to expand its reach into the Medicare Advantage market, which serves older adults and people with certain disabilities. Homeward Health has built a care model that targets rural and underserved communities, often using a combination of in-person and virtual services.

The combined company will aim to serve members across both Medicaid and Medicare Advantage plans. Cityblock's existing model relies on community-based care teams that work with members in their homes and neighborhoods. Homeward's approach has centered on bringing specialty care and primary care to areas where access to doctors is limited.

Financial terms of the deal were not disclosed. The acquisition is expected to close in the coming months, pending regulatory approvals. Both companies have faced the challenge of managing costs in government-sponsored insurance programs, where reimbursement rates are often lower than in commercial insurance. The merger may help them achieve economies of scale and negotiate better rates with providers and health plans.

Cityblock has been one of the more prominent startups in the value-based care space, operating in several states including New York, Massachusetts, and California. Homeward has focused on states like Michigan and Pennsylvania. The combined entity will have a broader geographic footprint and a larger member base.