Aledade, which has formed a large network of independent primary care practices to work on value-based care initiatives, has closed a Series F funding round of $260 million.
The Bethesda, Md.-based company’s network has grown to more than 1,500 independent primary care practices spread across 45 states and the District of Columbia. Aledade’s more than 150 value-based care contracts collectively cover more than two million patients and more than $20 billion in total healthcare spending. Aledade now serves more than one million patients under the Medicare Shared Savings Program and nearly 250,000 patients under Medicare Advantage contracts with national and regional health plan partners.
Aledade, a public benefit corporation, generated revenue of more than $475 million for 2022, representing more than 50 percent growth compared with revenue in 2021, the company said, adding that this growth translates directly to increased payments to the practices that were part of the Aledade network in 2022. To date through 2022, Aledade and its primary care partners have saved the U.S. healthcare system more than $1.7 billion.
The funding round was led by new investor Lightspeed Venture Partners, with participation from Venrock, Avidity Partners, OMERS Growth Equity, and Fidelity Management & Research Company.
“After a decade of experience with different value-based models, it’s clear what works – giving primary care accountability for the total cost and quality of care. We founded Aledade in 2014 on the premise that we can scale the success of value-based primary care,” said Farzad Mostashari, MD, CEO and co-founder of Aledade, in a statement. “With this financing, we can be opportunistic in identifying and acquiring additional capabilities into the Aledade platform that will enable the largest network of independent primary care in the country to consistently drive the best results in value-based care.”
Aledade also added two new members of its board of directors and a leader of its team optimizing quality and shared savings performance under value-based contracts with Medicare Advantage plans.
• David Blumenthal, M.D., M.P.P., was a practicing primary care physician for more than 30 years. Most recently, he served as the president of the Commonwealth Fund, a national philanthropy engaged in independent research on health and social policy issues. Previously, he was the Samuel O. Thier Professor of Medicine at Harvard Medical School, and chief health information and innovation officer at Partners Healthcare System in Boston (now Mass General Brigham). He also served as the National Coordinator for Health Information Technology from 2009 to 2011.
• Paul Hennessy is the CEO of Shutterstock. Prior to that, he served seven years on the Shutterstock board of directors. He previously served as CEO and a member of the board of directors of Vroom Inc., and before that as CEO of priceline.com. From 2011 to 2015, he served as chief marketing officer of Booking.com.
• Efrem Castillo, M.D., joins Aledade as senior vice president for Medicare Advantage. Before joining Aledade, he was a senior vice president of clinical transformation at Optum. Prior to Optum, he was chief medical officer at United Healthcare Medicare Solutions. Earlier in his career, he was a physician-owner of Castillo Medical Group in San Antonio, Texas.
Mandy Cohen, M.D., M.P.H., who was serving as CEO of Aledade Care Solutions, is leaving the company to become director of the Centers for Disease Control and Prevention when the current director, Rochelle Walensky, steps down on June 30.