- Aledade announced it has raised $64 million in Series C funding following the continued growth of its national network of physician-led Accountable Care Organizations (ACOs)
Aledade announced it has raised $64 million in Series C funding 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 (formerly Google Ventures).
This funding round comes as Aledade has experienced over 60% annual growth in revenue as well as nearly 50% annual growth in its patient base and total health care spending under management. And 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.
Partnered 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.
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. And 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.
“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
“All across America, primary care physicians are in need of innovative ways to deliver better care at a lower cost, while simplifying the administrative burden that takes time away from their patients. As this shift from legacy models of reactive patient health management to proactive value-based care gains momentum, and interest in the ACO approach continues to grow, Aledade is working hard to support physicians through this positive change. 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.”
-Teresa Lee, Managing Director at OMERS Growth Equity
“By working with Aledade, our practice has benefited from the technology, analytics, and practice transformation guidance they continually offer us. In addition, through our value-based contract arranged by Aledade, we’ve earned significant shared savings revenue for delivering the best possible care to our patients. 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.”
-Dr. Susan Chiarito, a member of the Aledade Mississippi ACO — which earned shared savings payments from Medicare last year