Aledade Receives $100M in New Funding Round
With its network approaching 800 independent primary care practices taking on risk in 31 states, Bethesda, Md.-based Aledade announced it has closed a $100 million Series D funding round.
Through this nationwide network of independent practices, Aledade practices manage roughly $12 billion in healthcare spending through 35 Medicare and 51 other value-based contracts and care for nearly 1.2 million patients. To date, Aledade’s participating practices have received more than $115 million in shared savings revenue.
Aledade, which was founded in 2014, said it would use this infusion of capital to expand its value-based care model with health plans across the country, with a particular focus on adding more partnerships with Medicare Advantage (MA). In 2020, Aledade more than doubled the number of patients served in its MA contracts, bringing the total to about 100,000.
The company said it also plans to launch several initiatives in 2021 to extend its technology platform. These features will extend the use of integrated telehealth; predict and prevent the occurrence of unplanned dialysis; reduce racial disparities in hypertension control; and enable even the smallest primary care practices in the country to join value-based contracts with Aledade.
Returning investor Meritech Capital led the funding round, which included new growth investors Tiger Global Management and IVP, and returning investor OMERS Growth Equity.
“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,” said Farzad Mostashari, M.D., CEO and co-founder of Aledade, in a statement.
In a blog post, the investors from IVP said they believe that Aledade has just begun to scratch the surface of its market opportunity. “With this new funding, we are excited for Aledade to scale its ACO network and to establish additional value-based contracts with health plans across the country, especially expanding further into Medicare Advantage. This will lower costs for more payers, increase revenue for more providers, and deliver better outcomes for more patients.”
