Aledade raises $64 million Series C
Aledade announced 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). OMERS Growth Equity led the round which included strategic investors California Medical Association, and returning investors Meritech Capital, Echo Health Ventures, CVF, and GV. In total, the company has raised over $194 million since its inception in 2014.
“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. 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 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.” – Farzad Mostashari, MD, CEO and co-founder of Aledade.
Aledade now partners with more than 550 independent practices and 7,300 providers in 27 states. Aledade’s ACOs care for more than 840,000 patients and manage more than $7.5 billion in health care spending through 38 Medicare and 42 other value-based contracts.
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 health care 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.
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.
