Aledade raises $100 million in Series D
MD-based primary care startup Aledade announced it has closed a $100 million Series D funding round led by Meritech Capital led, with new growth investors Tiger Global Management and IVP, and returning investor OMERS Growth Equity, as participants. Since its inception in 2014, the company has raised ~$294.9 million.
“Working in partnership with hundreds of amazing primary care practices, Aledade ACOs have helped 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. 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 health care. We are thrilled to put these resources to work by helping more primary care professionals enter risk-taking arrangements with all kinds of payers, reinforcing our tech platform in the face of nationwide growth, and innovative projects to improve the health of patients across the country.” – Farzad Mostashari, MD, CEO and co-founder of Aledade.
Aledade now partners with nearly 800 independent primary care practices, including more than 100 federally-qualified health centers, comprising more than 7,800 providers in 31 states. Through this nationwide network of independent practices, Aledade practices manage roughly $12 billion in health care spending through 35 Medicare and 51 other value-based contracts and care for nearly 1.2 million patients.
Aledade will use this infusion of capital to expand its value-based care model with health plans across the country, with a particular focus on growing their strategic partnerships with Medicare Advantage (MA) plans to improve outcomes and quality for more seniors. Aledade works with all of the largest MA payers and multiple Blue Cross plans to give Aledade practices access to Medicare Advantage value-based contracts. In 2020, Aledade more than doubled the number of patients served in these MA contracts, bringing the total to about 100,000.
“We’re grateful to be a small part of the Aledade team. Every other innovator in this space wants to own the doctors and be their boss. But Aledade’s team set out to prove doctors are better caregivers and leaders in their community when they stay independent. They’re happier, too. When we first invested in Aledade, we believed in their theory and took a leap. Now, we’re doubling down. Aledade and its network of independent primary care practices have proven they can treat patients far better and, as a bonus, raise revenue for primary care practices while simultaneously saving money.” – Craig Sherman, Managing Director at Meritech Capital.