Bethesda, Maryland-based Aledade closed a $64 million Series C funding round, bringing its venture capital raise to nearly $195 million to date.
Launched in 2014, Aledade manages a tech platform to help healthcare providers join forces to reduce Medicare costs. The company reports that it partners with 550 independent practices and works with 7,300 providers across 27 states to provide tools to build and lead accountable care organizations (ACOs).
As cofounder and CEO Dr. Farzad Mostashari explained to Crunchbase, Aledade “sets up value-based contracts for these primary care practices, where they are paid for outcomes, rather than a fee for service model.”
During the COVID-19 pandemic, the company says it has also helped 275 of its partner practices launch telemedicine offerings, and it has shipped care packages with personal protective equipment to members of its network.
“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,” said Mostashari, who is also the former national coordinator for health IT at the U.S. Department of Health and Human Services, in a statement.
This latest funding round was led by OMERS Growth Equity and included participation from new investor California Medical Association and returning investors Meritech Capital, Echo Health Ventures, CVF and GV. Aledade plans to use the fresh funding to continue growing its customer base of Medicare and commercial health plan providers.
“All across America, primary care physicians are in need of innovative ways to deliver better care at lower cost, while simplifying the administrative burden that takes time away from their patients,” said OMERS Growth Equity Managing Director Teresa Lee. “We are proud to have led this new investment in Aledade’s team and business, and look forward to helping the company build out its proven model, team, business and vision of a better health care system built around trusted primary care providers.”
Susan Chiarito, a member of the Aledade Mississippi ACO, said the practice has benefited from technology, analytics and practice transformation guidance provided by Aledade.
“Through our value-based contract arranged by Aledade, we’ve earned significant shared savings revenue for delivering the best possible care to our patients,” Chiarito said. “Now more than ever, it’s clear that the value-based care opportunities we have through our ACO are critical to the health of our patients and the success of our practice through the COVID-19 pandemic.”
The company’s ACOs care for more than 840,000 patients and manages more than $7.5 billion in health care spending. This latest raise comes after Aledade partnered with the California Medical Association to expand into California last May.
Aledade employs over 250 people and is currently hiring for a number of roles in Bethesda, including in business development and IT.-30-