Cityblock has announced a definitive agreement to acquire Homeward Health, a rural-focused healthcare company with virtual and in-home services. The company simultaneously announced that it closed a $116 million Series E funding round.

Cityblock acquired Homeward Health in an all-stock deal, according to a Thursday blog post signed by Toyin Ajayi, the company’s CEO and co-founder.

“Homeward has built a company that when combined with Cityblock’s deep experience serving urban Medicaid and dual-eligible populations, means we now have the scale and capability to reach deeper to serve the nation’s 120 million people receiving government-funded healthcare,” Ajayi wrote in the post.

General Catalyst led the Series E funding round, bringing its total investor funding to approximately $1 billion.

Brooklyn, New York-based Cityblock is a value-based healthcare provider of medical care, behavioral health and social services for dually eligible and Medicaid populations. The company serves almost 200,000 members and has partnered with national and regional Medicaid health plans and health systems in more than 10 states.

San Francisco-based Homeward operates an AI-powered platform that connects members to care and local resources addressing social determinants of health. Homeward takes full financial accountability for clinical outcomes and the total cost of care in rural areas. The company also employs care teams that can provide care to patients in their homes or virtually.

Ajayi situated the acquisition and the fundraise within a broader realm of pressures on value-based providers and healthcare providers serving patients covered by Medicaid and Medicare Advantage.

“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,” Ajayi wrote. “That’s exactly why we’re going to serve more Medicare Advantage members alongside continuing to serve individuals who are dual-eligible and those who receive Medicaid.”

Cityblock has previously expanded its long-term services and supports (LTSS) in an effort to make the home “even more central” to its offerings.

“Delivering services in the home allows us to better understand members’ lived environments, identify unmet clinical and social needs and intervene earlier,” Libby Graves, Cityblock’s senior vice president of regional markets and market vice president for Massachusetts, previously told Home Health Care News.