Aledade, a Bethesda, Md.-based company started by Farzad Mostashari, M.D. and focused on physician-led ACOs, announced it has closed a $64 million Series C funding round.
Aledade now partners with more than 550 independent practices and 7,300 providers in 27 states. The organization’s ACOs care for more than 840,000 patients and manage more than $7.5 billion in healthcare spending through 38 Medicare and 42 other value-based contracts, its officials stated.
The funding round comes as Aledade has experienced over 60 percent annual growth in revenue as well nearly 50 percent annual growth in its patient base and total healthcare spending under management. “This funding will empower 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,” officials stated.
The investments were led by OMERS Growth Equity, and also included strategic investors California Medical Association, and returning investors Meritech Capital, Echo Health Ventures, CVF, and GV.
As the healthcare system continues to face challenges presented by the COVID-19 pandemic, Aledade’s ACOs are aiming to keep patients healthy, at home, and out of the ER or hospital by focusing on improving access to and delivering proactive, coordinated primary care, their executives say.
To this end, Travis Broome, Aledade’s vice president for policy and ACO administration, tweeted on April 17, “On March 11 our 500 partner practices had 100 telehealth visits. On April 1 it was over 10,000. The platforms will take the simplest of the simple cases (AI probably eventually) practices will build the relationships through a growing array of mediums including telehealth.”
“We have the resources during this difficult time to be able to support practices, and help them not only to 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 as a business,” said Mostashari.
Overall, executives note that Aledade’s growth has been driven by the success of its physician-led ACO model, in which the company shares in the risk and reward of value-based contracts with the participating independent practices. Aledade ACOs have improved quality of care and health outcomes while controlling costs in all types of public and private payer contracts. As a result, Aledade’s partner practices have received more than $47 million in shared savings revenue to date, officials point out.