Aledade announced that it has closed a $64 million Series C funding round following the continued growth of its national network of physician-led accountable care organizations (ACOs). New investor OMERS Growth Equity led the round, which included strategic investors Echo Health Ventures and California Medical Association, and returning investors Meritech Capital and GV (formerly known as Google Ventures).
“When we started Aledade nearly six years ago, we believed that value-based care was the only path forward for our health care system and a sustainable business model for independent primary care practices,” said Aledade CEO and Co-founder Farzad Mostashari, MD. “Our uniquely resilient business model—built on years of hard work, innovation, and partnership—means that we have the resources during this difficult time to support practices and help them not only survive but to thrive. Aledade’s mission of always doing the right thing for patients, for doctors, and for society is now, and will continue to be, the core of our success.”
Launched in 2014, Aledade now partners with more than 550 independent practices and 7,300 providers in 27 states. The company’s ACOs care for more than 840,000 patients and manage more than $75 billion in health care spending through 38 Medicare and 42 other value-based contracts.
Aledade sets up value-based contracts for these primary care practices, which are paid for outcomes rather than the traditional fee-for-service reimbursement model. The primary care practices work together with Aledade to improve outcomes so that both parties share in the payments from Medicare and other payers for getting better health outcomes and quality measures at a lower cost of care.
Aledade’s ACOs have improved quality of care and health outcomes while controlling costs. As a result, the company’s partner practices have received more than $47 million in shared savings revenue to date.
“There are other ‘fellow travelers’ who have recognized the incredible potential of better primary care for managing total cost and quality of care,” Mostashari told Crunchbase News. “But we are different in that we have delivered results at scale across over a dozen different markets using our tech-enabled playbook. We don’t deliver care ourselves, we support those who do. We don’t buy practices, we empower them.”
The funding round comes as Aledade has experienced annual revenue growth of 60 percent, as well as nearly 50 percent annual growth in its patient base and total health care spending under management. The funding will allow the company to continue growing its existing and new ACOs as well as its value-based contracts with Medicare, Medicare Advantage, Medicaid, and leading commercial health plans.
During the COVID-19 pandemic, Aledade’s ACOs have kept patients healthy, at home, and out of the ER or hospital by improving access and delivering proactive, coordinated primary care. These ACOs use advanced data analytics to get insights on population health and conduct proactive care management for their most at-risk patients.
In addition, Aledade has supported its partners by producing large shipments of much-needed personal protective equipment, providing expert guidance on the rapidly changing policy and regulatory landscape, developing and distributing patient-facing COVID-19 content, and helping more than 275 independent primary care practices launch telemedicine visits.
Read the original press release here.
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