Aledade Raises $100 Million Series D to Help More Primary Care Practices Thrive in Value-Based Care
Aledade recently closed a $100 million Series D funding round following a year of significant growth for its national network of risk-taking primary care practices. Returning investor Meritech Capital led the round, which included new growth investors Tiger Global Management and IVP, and returning investor OMERS Growth Equity.
“Working in partnership with hundreds of amazing primary care practices, Aledade ACOs have help achieve better health outcomes for more than a million patients through risk-taking contracts across all types of payers, with remarkable growth in Medicare Advantage,” said Aledade Co-founder and CEO Farzad Mostashari, MD. “This impressive show of support from investors proves that value-based care led by independent primary care, embracing risk, is the right path forward for American healthcare.”
Aledade will use the funding to expand its value-based care model with health plans across the country, with a particular focus on growing its strategic partnerships with Medicare Advantage (MA) plans to improve outcomes and quality for more seniors. The company already works with all of the largest MA payers and multiple Blue Cross plans to give Aledade practices to MA value-based contracts. In 2020, the company more than doubled the number of patients served in these MA contracts, bringing the total to about 100,000.
As the company expands into more MA plan partnerships and welcomes more practices to its ACO network. Aledade will continue to invest heavily in its technology platform to ensure primary care physicians have a world-class operating system for population health. Aledade also plans to launch several new initiatives including extending the use of integrated telehealth, predicting and preventing the occurrence of unplanned dialysis, reducing racial disparities in hypertension control, and enabling even the smallest primary care practices in the U.S. to join value-based contracts with Aledade.
Aledade’s growth has been driven by the success of its physician-led model, in which the company shares the risk and reward of both government and commercial value-based contracts with participating independent practices. Aledade practices have improved the quality of care and health outcomes while controlling costs in all types of public and private payer contracts. To date, the company’s participating practices have received more than $115 million in shared savings revenue.
Read the full press release here.
See further coverage in:
- Becker’s Hospital Review
- Business Insider
- Fierce Healthcare
- Global Corporate Venturing
- Healthcare IT Today
- MedCity News
- Mercom Capital Group
- Startup Health
- The Health Care Blog
- Washington Business Journal